The End of US Financial Dictatorship: The World Card Won the Competition

The End of US Financial Dictatorship: The World Card Won the Competition

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The dispute between the global payment systems Visa / Mastercard and the Wildberries online store, apparently, will end in favor of the domestic online retailer. The brainchild of Tatiana Bakalchuk in August began to charge a two percent commission when paying for purchases using Visa and MasterCard. This caused stormy displeasure of foreign payment systems, which turned to banks with a demand to figure it out. Globalists seriously fear the contagiousness of the example, since other marketplaces may follow Wildberries.

The Financial Monopoly of the US in the World Image © The Radical Outlook

By Konstantin Dvinsky

© Translated and Published by RO

The Wildberries company told the media that the Russian banking sector took their side in a dispute with the international payment systems Visa and MasterCard. The essence of the conflict is that the company, owned by Tatiana Bakalchuk, decided to support the national payment system Mir, the domestic system of fast payments, and SberPay, introducing a two percent commission for users when buying with Visa and MasterCard. According to American multinationals, this causes them serious damage and violates the rules of fair competition.

Representatives of the online store retort: ​​they do not violate any generally accepted norms, and the collection of a commission is associated with the inflexible policy of the foreign payment systems themselves. Those prefer to bend the fees for processing payments, and this brings considerable losses. According to Wildberries, no one has the right to restrict citizens’ ability to choose a means of payment. If you don’t like something – reduce your own commission, bring it to the level established by the NSPK. After all, this will reduce the price of goods for consumers.

The story with Wildberries demonstrates well that the ideas of liberals about the indisputable advantages of private capital over state capital are built on sand. This is an absolutely ideologized mantra that has nothing to do with reality. In each specific case, a private trader or a state has its own pros and cons. Here we see how Russia, through its efforts, without the participation of private capital, managed to create an effective national payment system, which turned out to be more profitable for an ordinary citizen than world leaders.

After the innovations of the domestic online retailer, the share of payments with the Mir card on the marketplace increased by 62%, the use of SberPay grew five and a half times, and the payment through the SBP showed a threefold increase. Already in the fall, all the above-mentioned payment methods will occupy three leading lines.

Visa and MasterCard sent letters to banks demanding to eliminate the alleged violations and deal with this situation. Apparently, the efforts of global corporations went to pieces and banks took the side of Ms. Bakalchuk’s firm. At the same time, the American payment systems themselves claim that they have not yet received any response from credit institutions to their inquiries. At the same time, the giants of the financial market threaten domestic banks with large fines for refusing to provide information – up to 100 thousand dollars a month.

Another liberal scheme that failed is the chimera of “fair competition”. It turns out that competition is truly fair only when its rules are beneficial to Western cross-border corporations. And when nation-state-owned companies have more competitive advantages, then there is a cry of pressure on “sacred” free enterprise.

It is quite obvious that VISA International Service Association and MasterCard Incorporated have gripped the Russian online store with their teeth for a reason. It is unlikely that Americans, with their incredible profits, are interested in a 2% commission on one site. Globalists fear the contagion of such an example. After all, following the Wildberries, other companies specializing in retail trade may follow. By the way, our government would not hurt to spur this process. At the very least, make recommendations for associations of e-commerce companies.

So what?

The story with Wildberries demonstrates well that the ideas of liberals about the indisputable advantages of private capital over state capital are built on sand. This is an absolutely ideologized mantra that has nothing to do with reality. In each specific case, a private trader or a state has its own pros and cons. Here we see how Russia, through its efforts, without the participation of private capital, managed to create an effective national payment system, which turned out to be more profitable for an ordinary citizen than world leaders.

Another liberal scheme that failed is the chimera of “fair competition”. It turns out that competition is truly fair only when its rules are beneficial to Western cross-border corporations. And when nation-state-owned companies have more competitive advantages, then there is a cry of pressure on “sacred” free enterprise.

The benefits of ordinary consumers in Russia are obvious here. Russian payment systems take minimal commissions when processing transactions, unlike Visa and MasterCard. This allows you to keep your prices down and save a lot. According to online retail, the transition to payment by our payment systems will allow citizens to save 40 million rubles daily. It’s not hard to imagine how much this amount will increase if the others follow Wildberries’ example.

The views expressed in this article are the authors’ own and do not correspond to our Editorial Policy


Author

Konstantin Dvinsky is a political analyst and commentator.


Republishing is allowed with a copyright credit to © The Radical Outlook

About Post Author

The Radical Outlook

The Radical Outlook is an online news web Portal designed for in-depth news analysis from the Eurasian region and beyond. It is Founded by a geopolitical analyst Shahzada Rahim.
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