Who can influence the development of a cashless economy?
According to the market experts and government officials themselves, the business community is ready to facilitate innovations in cashless payments, however more cooperation and flexibility is needed from the Parliament, the government and the National Bank of Ukraine in order to promote a healthy business and payments environment.
The government can start doing so by working on the newly developed Citizen Identification Service called BankID which has proven to have quite a few weaknesses which discourage the potential users from trying it out. For example, it is essential to make administrative services using BankID more accessible and wide-ranging for the service to be feasible.
Another factor that leads to the so-called apathy amongst consumers is that the banking infrastructure is in great need of development. Not only is the use of POS-terminals underdeveloped, but the commonness of POS-terminals outside big cities is gradually declining. A really popular although only partial solution to this problem would be the introduction of cash deposit and cash withdrawal points at the cash registers in shops. The Verkhovna Rada unfortunately didn’t provide the support for this draft order.
Finally, a reform which could trigger a wider use of cashless payments may be the introduction of an e-ticket system in public transport. There is a lot of nuances with this idea but the experts have addressed them all in the draft order №4658.
Therefore, the improvement of banking infrastructure and the creation of good conditions for consumers are necessary for the success of cashless payments in Ukraine, however it all depends on the decisions of the Parliament, the National Bank of Ukraine and the Ministry of Infrastructure.
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