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Mastercard shifts focus to Southeast Asia, LatAm after India ban, Russia exit -Breaking


© Reuters. FILE PHOTO – A Mastercard logo can be seen on this credit card illustration from August 30, 2017. REUTERS/Thomas White/File photo

By Divya Chowdhury

DAVOS (Reuters) – Southeast Asia and Latin America represent strong growth areas for Mastercard (NYSE) following its March withdrawal from Russia and India’s ban in 2021 on issuing new cards. The company’s international market co-president stated that.

Ling Hai said, “Southeast Asia (due) to the right demographics. The adoption of technology. Digitisation and government focus on financial inclusion.” He added that China would benefit the countries within the region as the supply chain shifts away from China.

India’s central bank has banned Mastercard, declaring that it was “non-compliant” with 2018 Indian rules. These regulations required Indian card networks to keep Indian payment data local for “unfettered supervision access.”

Hai expressed his belief that India is getting closer to a settlement. Hai also stated that Hai had been working with “very constructively” the Indian government as well as the Reserve Bank of India.

Hai indicated that Mastercard was prepared to adhere to India’s data-storage regulations. The goal is 100% compliance. Everything we can localise to India is being done.

Mastercard’s operations in Russia were suspended in March after it invaded Ukraine. This was a result of the market accounting for 4% of its total revenue.

Mastercard, Hai explained that Russia has the potential to make rules in financial inclusion and sustainability areas more transparent. Mastercard, Hai added, will also work together with other stakeholder in the system, including the government, Hai.

Hai stated that Europe is an attractive market due to the post-COVID economic recovery, as well as the potential for innovation.

The payment network company does not only focus on geography but also on the high-growth areas of its business such as business to business payments flows and telecommunications.

(This was a Reuters Global Markets Forum interview. Sign up for GMF Messenger on Refinitiv Messenger