Turkey, Russia working on new payment system after Mir card triggers US threats

A new payment system for Russians visiting Turkey is in works, according to Turkish news outlet Hurriyet. Named Rebit Kart, new system will allow Russian tourists "to easily use" cards via a mobile application, as per sources in ministration of President Recep Tayyip Erdogan.

new system comes as a much-needed alternative after banks in Turkey suspended Mir, a Russian card payment system, at behest of Erdogan. suspension was prompted by United States revealing that it intends to sanction those who support Moscow's expansion of its payment system across globe.

Mir, which was launched in 2014 by Central Bank of Russia as a substitute for Visa and Mastercard, was rapidly opted by nations like Turkey, Belarus, Kazakhstan, South Korea, Uzbekistan, Kyrgyzstan, Vietnam, and Tajikistan. In August last year, five banks in Turkey began accepting payment network to make it easier for Russian tourists to pay for ir purchases.

US threatens to sanction financial institutions for using Mir 

However, US Treasury's Office of Foreign Assets Control (OFAC) later declared that it will be imposing sanctions on any financial body outside Russia that uses Mir and in turn, facilitates “Russia’s efforts to eve sanctions”. This led to Turkish banks suspending payment system, as banks of Kazakhstan and Vietnam followed suit.

Russia’s ambassor Aleksey Yerkhov said earlier in February that “ work [on an alternative to Mir] is underway but it’s too early to announce results." He ded that furr progress and assessment will be me during peak tourist season. Before that, Alexey Yegarmin, he of Russian-Turkish Business Council, hinted that creation of a new payment network was underway.