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Cashless payments increased by 5% in 2020

26/ 02/ 2021
  Cashless transactions with the use of payment cards are becoming increasingly popular among Ukrainians. According to the information published by the National Bank of Ukraine, in 2020 the volume of non-cash payments continued to grow and amounted to 55% of all settlement operations vs 50.3% in 2019. Six years ago, this figure was only 25%. To some extent, the growth of this indicator in 2020 was facilitated by the introduction of quarantine restrictions which encouraged consumers to prefer online shopping and reduce the number of direct contacts with other people by using a bank card to pay at store outlets. In 2020, the total volume of electronic money transactions amounted to UAH 19,304 million which is 15% more than in the previous year. In turn, the number of e-wallets increased to 79 million, which is 7% more than the previous year. Meanwhile, there was a decrease in the volume of e-money issued which may be due to the fact that in the second half of 2020, several large participants left the market. To stimulate the cashless economy development, the National Bank has significantly updated Ukrainian legislation in the field of financial monitoring by modernizing and harmonizing it with EU legislation. Thanks to these measures, the use of electronic money in Ukraine is becoming more transparent, and an increasing number of their users are sufficiently informed and protected. Now each e-wallet user will be identified and verified by the bank in the same way as when opening a regular bank account, while e-transfers must be accompanied by complete information about the payer and recipient. The EBA Electronic Payments Committee welcomes the consistent steps of the National Bank, which contribute to the implementation of innovative technological solutions in the field of non-cash payments. Such improvements improve the business environment for market participants, as well as add convenience to users of electronic payment services, which, in turn, will help maintain the trend of further growth in non-cash payments. Thus, in 2021 the business expects at least the followings: Adoption of the Law of Ukraine On Payment Services (draft #4364 of 12.11.2020, adopted on 19.02.2021 in the first reading), which will change the outdated approaches to the legal regulation of the payment market, expand the range of payment service providers and create conditions for the cashless economy in Ukraine ; Further introduction of qualified electronic signatures (QES) mechanisms for individuals and individual entrepreneurs, namely: regulation of the remote identification of the client to issue a QES certificate, including the use of video identification procedure; Amendments to the legislation to eliminate the rules that prevent the remote conclusion of agreements between banks and their customers, as well as limit the attractiveness for businesses of the use of corporate payment cards. We hope this year will bring us productive cooperation with the National Bank and other stakeholders of the payment market!   Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.

Cashless transactions with the use of payment cards are becoming increasingly popular among Ukrainians. According to the information published by the National Bank of Ukraine, in 2020 the volume of non-cash payments continued to grow and amounted to 55% of all settlement operations vs 50.3% in 2019. Six years ago, this figure was only 25%.

To some extent, the growth of this indicator in 2020 was facilitated by the introduction of quarantine restrictions which encouraged consumers to prefer online shopping and reduce the number of direct contacts with other people by using a bank card to pay at store outlets.

In 2020, the total volume of electronic money transactions amounted to UAH 19,304 million which is 15% more than in the previous year. In turn, the number of “e-wallets” increased to 79 million, which is 7% more than the previous year. Meanwhile, there was a decrease in the volume of e-money issued which may be due to the fact that in the second half of 2020, several large participants left the market.

To stimulate the cashless economy development, the National Bank has significantly updated Ukrainian legislation in the field of financial monitoring by modernizing and harmonizing it with EU legislation. Thanks to these measures, the use of electronic money in Ukraine is becoming more transparent, and an increasing number of their users are sufficiently informed and protected.

Now each e-wallet user will be identified and verified by the bank in the same way as when opening a regular bank account, while e-transfers must be accompanied by complete information about the payer and recipient.

The EBA Electronic Payments Committee welcomes the consistent steps of the National Bank, which contribute to the implementation of innovative technological solutions in the field of non-cash payments. Such improvements improve the business environment for market participants, as well as add convenience to users of electronic payment services, which, in turn, will help maintain the trend of further growth in non-cash payments. Thus, in 2021 the business expects at least the followings:

  • Adoption of the Law of Ukraine “On Payment Services” (draft #4364 of 12.11.2020, adopted on 19.02.2021 in the first reading), which will change the outdated approaches to the legal regulation of the payment market, expand the range of payment service providers and create conditions for the cashless economy in Ukraine ;
  • Further introduction of qualified electronic signatures (QES) mechanisms for individuals and individual entrepreneurs, namely: regulation of the remote identification of the client to issue a QES certificate, including the use of video identification procedure;
  • Amendments to the legislation to eliminate the rules that prevent the remote conclusion of agreements between banks and their customers, as well as limit the attractiveness for businesses of the use of corporate payment cards.

We hope this year will bring us productive cooperation with the National Bank and other stakeholders of the payment market!

 

Be the first to learn about the latest EBA news with our Telegram-channel EBAUkraine.

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