National Bank of Georgia denies rumours of Visa/Mastercard restrictions and unveils new payment system
Georgia’s National Bank on new payment system
The National Bank of Georgia has denied reports about plans to restrict the operations of Visa and Mastercard in the country. It clarified that, in cooperation with the World Bank, it is working on the introduction of an instant payment system, which will become available to the public and businesses in the second half of 2026.
“First and foremost, we would like to clarify that this is disinformation and a misrepresentation of actual facts that do not reflect reality.
The National Bank is continuously working to develop the country’s payment system — improving its accessibility, efficiency, and security — while also fostering a competitive environment in the sector. Specifically, the National Bank is independently developing payment infrastructure, drafting legislative amendments, and cooperating with leading global technology companies, including international card systems such as Visa and Mastercard.
These companies have been operating in Georgia for more than 25 years and have played a significant role in the development of the country’s payment sector, becoming key drivers of growth in cashless transactions. As part of ongoing cooperation with Visa and Mastercard, new products are regularly introduced — including cross-border transfer options.
However, the advancement of financial technologies has enabled traditional global payment systems to become more efficient. A next-generation system — the instant payments system — has already been implemented in more than 120 countries. These systems operate without cards and offer consumers payment methods similar to card transactions, sometimes with greater benefits, such as lower transaction fees and immediate fund availability for recipients.
Several years ago, the National Bank, in collaboration with the World Bank, began working on the implementation of an instant payments system. This system will be available to the public and businesses in the second half of 2026. Furthermore, it will support the continued development of so-called open banking services, offered in Georgia by fintech companies registered with the National Bank as payment service providers.
It is important to note that the creation of the institution of non-bank payment service providers and the promotion of open banking services is a requirement under Georgia’s Association Agreement with the European Union. This obligation was fully met through legislative amendments adopted in 2022.
The synergy between instant payments and open banking will allow consumers and individuals to access services tailored to their needs and more accessible than current options. Despite the relatively high level of card-based payments in Georgia, this method still remains less accessible to small businesses due to high service fees. The new instant payments system, in collaboration with fintech companies, will significantly improve access to digital payments in segments currently underserved.
Additionally, the new payment system will operate according to international standards and will be compatible with the Single Euro Payments Area (SEPA) schemes, allowing Georgia’s payment infrastructure to integrate with the European system once the country joins the SEPA geographical zone.
To clarify, both non-card-based systems and traditional card schemes (VISA, Mastercard, American Express) will continue to operate in parallel in Georgia — as they do in leading global economies — enhancing competition in the payments sector and offering consumers a wider range of choices.”
Background
On 27 March, Vako Turnava, an MP from the ruling Georgian Dream party, claimed that VISA and Mastercard had withdrawn hundreds of millions of lari from the country in the form of fees.
In response, National Bank Vice President Ekaterine Galdava stated that the bank is working on a project aimed at reducing the dominance of VISA and Mastercard over domestic transfers in Georgian lari.
“In addition to open banking, we are working on another project — the National Switch — which will reduce the influence of Visa and Mastercard on lari-denominated transfers. It will take at least a year to implement; it’s a complex initiative,” Galdava said.
Expert commentary
Georgian economist Giorgi Chugoshvili expressed concern over the National Bank’s plans, drawing parallels with Russia, where Visa, Mastercard, and American Express are no longer operational due to international sanctions.
“Russia’s central bank and government began transitioning to a domestic card system after the 2014 annexation of Crimea. Even then, they knew exactly what they were planning in Ukraine and understood sanctions were inevitable. That’s why they prepared,” Chugoshvili said.
In his view, the Georgian government is now doing something similar — preparing for Western sanctions:
“The fact that today the National Bank and some MPs are claiming that VISA and Mastercard are extracting huge sums from Georgia serves only one purpose: to prepare the public for looming financial sanctions.”
Chugoshvili even outlined a worst-case scenario:
- Georgia’s access to international payment systems is restricted
- A Georgian national card system is created
- A National Bank subsidiary is established to handle local processing — only in lari
- The hypothetical Georgian card becomes unusable for services like Amazon, Netflix, Spotify, etc.
“Then, or perhaps even before that, Georgia’s visa-free regime with the EU will be revoked. And in the end, we could be left with a wrecked economy, private VSE cards, and queues for visas,” Chugoshvili concluded with a grim forecast.
Georgia’s National Bank on new payment system
