Russia’s Sberbank re-uses bank card chips to combat shortage

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MOSCOW (Reuters) – Russia’s prime lender Sberbank on Thursday mentioned it had began eradicating chips from un-activated bank playing cards to combat a shortage sparked by European suppliers halting deliveries, as sanctions rain down on Russia and its banking sector.

Unprecedented Western sanctions over Moscow’s actions in Ukraine and provide chain disruptions have severely impacted Russia’s entry to sure items, with the import of superior know-how posing a selected problem.

The National Card Payment System (NSPK) in April mentioned there weren’t sufficient chips to meet demand for issuing Russia’s home-grown Mir banking playing cards as European chip suppliers refused to work with Russian banks. Visa Inc and GraspCard Inc have suspended their operations in Russia.

“A shortage of chips for playing cards has began in Russia,” mentioned Sberbank’s head of cyber compliance Olga Maklashina at a cost safety convention on Thursday. “We largely labored with European chip producers…there’s now a giant downside with logistics from Europe.

“Plus, Visa and Mastercard left the Russian market so everybody began reissuing and making Mir playing cards, so elevated demand for card issuance appeared.”

Maklashina mentioned the scheme had saved one billion roubles ($15.86 million) as 375,000 playing cards every month stay un-activated.

“Chips grew to become scarce and dearer. Our colleagues on the issuing centre got here up with an nearly genius resolution – reimplanting bank card chips,” Maklashina mentioned. “That is, we began choosing out chips from playing cards and inserting them into new ones.”

Maklashina mentioned Sberbank was solely taking the chips from un-activated playing cards.

The NSPK mentioned in April it was turning to Chinese corporations for provides of microprocessors for playing cards.

($1 = 63.0500 roubles)

(Reporting by Reuters; Editing by Mark Trevelyan)



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