Development of a Russian National Payment Card System in the Midst of Economic Sanctions

Abstract

ABSTRACT The goal of this article is to study the main stages in the formation of the Russian national payment card system (NPCS) in the midst of the economic sanctions. The authors analyze the key factors characterizing modern development of an NPCS, and they conclude that the acceptance-and-settlement infrastructure must be improved and the roll-out of economic incentives for system participants should be more aggressive. In the long term, the Russian NPCS will successfully compete with international payment systems on the domestic market only if it can introduce innovations in the acceptance and processing of payments and also offer competitive advantages with respect to the price and function of its products. The results of this article can be used by research economists, credit institutions, and national regulatory bodies in order to improve the national payment card system, increase its efficiency, and stimulate the growth of cashless payments in the country.