The ongoing tension between Russia and Ukraine wreaks havoc on payment solutions. Paysera, a Baltic fintech, halts transfers to and from Russia and close accounts of Russian clients. The company shows its solidarity with Ukraine and the current events transpiring in the country.
Paysera Leads By Example
When Russia decided to invade Ukraine, it was a matter of time until service providers would take action. Baltic fintech provider Paysera is one of the first companies to do so openly. Their decision to halt payments to and from Russia and accounts linked to Russian clients sends a strong signal. Although it will do nothing to end the current tension, it is interesting to see companies exert this option.
Any transaction in Russian roubles or to and from Russian clients will not be processed. Additionally, Paysera restricts money transfers to and from Russian banks. The question is whether other institutions will take a similar approach in the coming days. Suspending operations related to Russia will not make much of a difference, but when more companies do so, change may be affected in the end.
Paysera CEO Gintautas Mezetis adds:
“While we understand that we are not a giant in the financial market, we do want to send the message that we can all have an impact through the choices we make. While we refuse to transfer money, someone else might refuse to insure, produce, advise, invest, or provide transport.”
Although one has to commend Paysera, all eyes are on the Western governments. The only viable decision is cutting Russia off from the Swift banking network. It would not be the first time, as Iranian banks suffered a three-year ban too. However, Russia has CIPS – developed with China – to provide a potentially viable alternative. Rest assured this situation is far from over and more decisions will need to be made soon.