Visa, the global payment system, made a noteworthy move on October 26 by prohibiting banks in countries neighboring Russia from opening accounts for Russian individuals. The penalty for non-compliance is a hefty $1 million fine. In a statement, Visa clarified that financial institutions are now barred from issuing cards to Russian passport holders who do not reside in countries such as Estonia, Latvia, Lithuania, Poland, and others.
Russian media outlets have reported that major banks in Russia have already ceased accepting U.S. dollars and euros through ATMs. In late August, the Bank of Russia officially registered Kwikpay as a payment system operator. Kwikpay is set to accept cards from various payment systems, including Visa and Mastercard. Interestingly, Kwikpay also facilitates money transfers not only within Russia but also to 37 countries within the Commonwealth of Independent States. It extends its services to several countries in Europe and Asia, such as Vietnam and the Philippines.