In today’s global economy, credit cards are an essential tool for conducting business. They allow companies to make international transactions without having to worry about currency exchange rates or bank fees. In addition, they can be used to buy goods and services online, making them a convenient way to do business with customers around the world. However, they come with some risks. If a company doesn’t manage its finances carefully, it can end up accumulating debt that is difficult to repay. In addition, credit card companies may impose international sanctions if a customer fails to pay their bill on time.
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Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: Russian Credit Cards Will Lose Relevance as Their Economy Tumbles
Countries with One or More Credit Cards Per Person:
- Canada has an average of 3.85 cards per person.
- The U.S. has an average of 3.23 cards per person.
- Japan has an average of 2.34 cards per person.
- Korea has an average of 2.20 cards per person.
- Brazil has an average of 1.33 cards per person.
About Russian Credit Cards Viewpoint
Russia was primarily a cash economy until 2012, when payment cards began to displace cash. Recent global events indicate that domestic card usage will continue, with growth in debit transactions, but volumes will languish.
Russia’s domestic payment scheme will keep transactions flowing within the country. Still, it faces challenges in global acceptance and will not be capable of supporting a robust credit card function as the economy weakens as a result of the international sanctions.