On the national payment card system

According to the approved Strategy of Development of the National Payment System (NSPK), the 3rd stage of its development is being implemented now by the decision of the Supervisory board of NSPK JSC of February 6, 2015. The strategy envisages that the 3rd stage (2016-2018) is to focus on the NSPK product line enhancement by offering up-to-date payment products and services, their promotion and expansion on the territory of the Russian Federation. A multifunctional product line of payment products and services of NSPK is to be the key result of this stage, and it will allow NSPK to become competitive against international payment systems.

At the moment the development of NSPK shows the following results:

• 380 banks have joined NSPK, 100 of them issue Mir payment cards. Over 10 mln cards are being held by citizens within Russia. 67 largest trade and service companies (hypermarket chains, gas filling stations and restaurants) accept the national card.
• Since July 1, 2017 Mir cards have been available for use in departments and ATMs of all Russian banks. New employees of budgetary enterprises and old-age pensioners, that are to start receiving their pension benefit, have also begun getting the cards since July 1. Geolocation launched at locator.mironline.ru allows looking up the closest service points of Mir cards.
• The Mir payment system has entered co-badging agreements with Maestro (a MasterCard brand, has limited functions compared to the main one), Japan’s JCB, and has signed corresponding contracts with American Express and Union Pay, China.
• There are ongoing works on certification, adjustment of processing systems, calculation schemes and mechanisms under the pilot project of NSPK and the Armenian payment system ArCa, that provides for a mutual acceptance of national payment cards within both countries’ infrastructure: of ArCa cards in Russia, and Mir cards in Armenia.

However, a survey by the Russia Public Opinion Research Center (VCIOM) has revealed that the population is not ready for the reform. According to the results, about 70% of Russians are not going to get a Mir card at the moment. 3% are holders of the card, and 20% are going to get the card. 78% of Russian citizens are holders of at least one card.

In order to improve the development of NSPK, in future the obligation to accept Mir card is going to be included in the Consumer right protection code. The launch of a cashback service program is expected in autumn 2017. According to the program, every cardholder, regardless of the issuing bank, can get a bonus reward of a certain percent of the purchase by paying with the new Mir card in Russia (for food, fuel, tourism, etc.). Geolocation connected with the loyalty program is to be implemented as the 2nd – 3rd step of 2018, for it requires a rather complicated mechanism.

In addition to this, the first joint project of the international system Visa and national system Mir (possibly the first one within the framework of the Visa – Mir co-badging) is planned to be performed in the form of the VTB’s new Moscow social card, as well as promotion of business relations with Vietnam, United Arab Emirates, the CIS countries, and search for common grounds with a number of European Mediterranean and Central European countries – in order to make it possible to use Mir cards abroad.

After a successful realization of the mutual acceptance of ArCa and Mir cards, similar projects will be implemented in other Eurasian Economic Union countries, Belarus (Belkart payment system) and Kazakhstan (Tengri-card) in particular. Pilot projects in Belarus and Kazakhstan are to start before the end of 2018.

Evidence suggests that NSPK’s development goes in strict adherence to the Strategy. Experts recommend you to check a bank’s reliability in the Information and Analytical system Globas® before getting a Mir payment card.