The scope of non-cash payments in Ukraine will continue to grow in 2019
Starting from 2016, cashless payments in Ukraine showed an increase in the number of cards, places that accept cashless payments, transactions and volumes of payments. Growth of individual indicators has been at the level of 40-50% per year. At the end of 2018, according to expert estimates, the share of cashless settlements in the total amount was about 12-15%. This year, the trend will continue and the share of cashless in the total amount of payments will increase by several percent and may amount to 17-20%.
This is facilitated by the emergence in the market of new, interesting and user-friendly technologies such as Apple Pay, Google Pay, etc. In addition, there is an expanding list of places where you can pay cashless – transport, cultural events, markets and shops. For example, in some Ukrainian cities on public transport you can pay by card. In some festivals all bills are carried out exclusively without cash. One of the largest markets in Ukraine – Stolichshnyj, has introduced the possibility of payment without cash.
Of course, we want a payment revolution. To pay everywhere for everything by card. To map cards to the fingerprint of the owners. However, there are conditions and pace of market development. But it is quite possible that in a few years stores will not have to wait for the rest and even not need to enter the card PIN.
However, already in 2019, business expects several new services in Ukraine.
First, cash withdrawal via a POS terminal at ticket offices.
This service can substantially solve the problem of insufficient development of banking infrastructure and provide consumers with access to funds in places where there are insufficient bank branches. The legal basis for launching such a service has already been formed. Currently, market participants are finalizing their plans and getting ready to start providing the service as soon as possible.
Secondly, the implementation of currency exchange transactions in non-cash form through Internet banking is underway.
The service will be available in February. The prerequisites for its launch were the adoption of last year’s Law on Currency and Currency Values. With the introduction of this service it will be possible to carry out currency exchange transactions in the amount of up to 150 000 UAH through remote channels of service. It will not be necessary to provide additional documents or contact the bank branch. It is enough to have accounts in national and foreign currencies and be an online banking user, including mobile versions.
Thirdly, the possibility of processing an instant installment for the purchase of goods when paying by card.
Active work is underway on the launch of this service.
And fourthly, payments using QR codes.
“Of course, this is not a new service. Last year some entrepreneurs used it. We expect that this year it will become massive. This opportunity will be especially interesting for small businesses, for which the use of a classic POS terminal is often expensive,” – commented Ievgenii Veremiichenko.
At the same time, this year it is worth paying attention to the transfer of wage payments and social payments to non-cash channels. The initiative has long been foreseen by the NBU’s Cashless Economy project. However, till this time it remains unrealized. Its implementation would contribute to a significant increase in the number of holders of payment cards and the popularity of cashless payments, as well as deshadowing in the area of payment of wages. In addition, such an approach will enable wider and more convenient access to modern financial services, and will enable employers to simplify and optimize wage payment processes.
Also, one of the most important directions is the development of infrastructure for receiving cashless payments. Indeed, despite the positive dynamics, the number of POS terminals in Ukraine remains insufficient. Namely, an average of 6.3 thousand units per 1 million population. The corresponding EU average totals 26.4 thousand.
Part of the solution may be the final approval of requirements for business entities for the acceptance of electronic payment funds as payment for goods / services. This is a draft resolution of the Cabinet of Ministers of Ukraine “On Approval of Requirements for Business Entities on the Acceptance of Electronic Payment Facilities for Payment for Goods (Services rendered)”. This resolution seeks to establish step-by-step transition of businesses to cashless payments, clear criteria and requirements and to expand the list of possible ways of receiving payments, since now this is provided exclusively through POS terminals.
Fair businesses welcome the proliferation of cashless payments. We hope that by 2020, Ukrainians will be able to pay electronically literally everywhere.