Electronic payment systems in Ukraine

2017: Payment market of Ukraine: the number of transactions grows, the number of cards decreases 

Ukrainian processing center (UPC) published in January, 2018 key indicators of the market  of payment cards of Ukraine at the end of 2017. For the reporting period the total  quantity of transactions on cards grew by 24% in a year whereas the number of ATMs and payment cards decreased^[1].

Payment by the card

The popularity of calculations continues to grow at payment cards among Ukrainians actively. For 2017 the number of the purchases paid with cards increased by 42%. At the same time the number of financial transactions on one active card reached 5.6 in a month.

Comparing since 2016, the share of calculations with the payment card from the total number of financial transactions also increased by 7% and made 63%. And the share on purchasing amounts the card made nearly 26%.

Also in 2017 the share of the purchases paid by cards through the Internet equals 14% of all purchases by cards. The number of such transactions increased by 26% in 2017 whereas in 2016 this indicator grew by only 19%.

Contactless payments

Holders of payment cards estimated advantage and convenience of contactless payments. The number of payments by proximity cards grew by 3 times and occupies 19% of all purchases with cards in POS terminals. Dynamic growth of these indicators promoted increase by 23% of number of POS terminals which accept proximity cards. Today 96% of all POS terminals connected to Ukrainian processing center and placed in retail chain stores accept for payment proximity cards.

The non-contact method of payment is more often used for mass payments for the small amounts. The average amount of the check of contactless purchases in 2017 was 166 UAH that is 12% more, than in 2016.

Most often Ukrainians were calculated without contact at gas stations, in fast food restaurants, in supermarkets, in household shops, shops of cosmetics and paid travel by the subway. In spite of the fact that the number of contactless payments of travel by the subway increased by 5 times, their share makes only 5% of all contactless transactions.

Transfers from the map on the card on the Internet

In 2017 holders of payment cards made even more transfer from the card on the card on the Internet. Last year there was a growth of number of such transfers to 56%, and the average transaction amount made 1,800 UAH. The share of transfers from a total quantity of financial payment card transactions in 2017 made 1.4%, and on volume nearly 2%.

The number of ATM continues to be reduced

The number of ATM of UPC banks clients decreased by 3%. At the same time indicators of use by holders of cards of additional services on ATMs, on the contrary, grew. For example, the number of operations on change of the PIN code (Pin-change) increased by 6 times, in connection with implementation of Paperless PIN service by UPC banks clients in ATMs.

The number of deposit (cash-in) transactions in ATMs increased by 6%. However do not lose the popularity and cash payments. So the number of operations on cash withdrawal (cash-out) increased by 3%.

"On analysis results of indicators of 2017 it is possible to draw conclusions that the market of payment cards of Ukraine is recovered. Contactless payments, online of purchase, payment through mobile applications and other innovation financial services contribute to the development of non-cash payments" — noted in Ukrainian processing center.

2016

Forecast of Visa

Top trends and drivers of growth of the Ukrainian e-commerce market were designated by Visa company, having conducted a research for the 3rd quarter 2016.

The National Bank of Ukraine prohibited use of the Russian payment systems

Under prohibition 4 electronic payment systems got: WebMoney, Yandex.Money, QIWI Wallet and Wallet one. The lack of approval of the NBU of provision of services became the reason of such solution. Learn more: Sanctions of Ukraine against Russia.

And meanwhile VKontakte started money transfers to Ukraine, it is possible to get the translation on the MasterCard and Maestro cards issued by the Ukrainian banks.

"We are convinced that against the background of news about restriction of work of some money transfer systems in Ukraine our service will be popular" — are quoted in the press release of a word of the director of e-commerce of VKontakte Yury Ivanov. According to it, till January 8 of the next year the social network and Mastercard organized a joint action within which "when sending transfer to Ukraine the fee is not charged, and the receiver of transfer needs a gift". As Ivanov told, pr money transfer through social network the receiver can accept them within five days.

A transfer is made in Russian rubles, and at transfer on the card with the account in hryvnias or other currency there is a converting at the rate of the bank which issued the receiver's card.

2014

From January till June, 2014 the volume of electronic payments in Ukraine grew by 18% in comparison with the same period of last year and made 6.694 trillion UAH. It is reported in the press release of National Bank of Ukraine.

In six months 2014 participants of the electronic payment system (EPS) made 156.4 million initial payments, and it is 4% less in comparison with the first half of the year 2013. The most part of initial payments and electronic settlement messages were directed to SEP by banks and their branches — 146 million documents, i.e. 93% of a total quantity.

On average in a day during the period January-June within SEP 1.3 million payments for the amount more than 55.7 billion UAH were processed, daily average balance on accounts of participants of SEP was 31.45 billion UAH (in І half-year 2013 – 27.8 billion UAH), and average daily coefficient of turnover of means on accounts of participants of a system – 1.77 (in І half-year 2013 – 1.70). 'The third model of service of the consolidated correspondent account on which the legal entity has the consolidated correspondent account and intra banking interfilial payment system that provides carrying out money transfer between bank branches and interaction with SEP for implementation of interbank money transfer by bank branches was in the most great demand among participants of SEP', – note in the NBU.

Participants of SEP which worked on this model in the first half of the year made initial payments and sent electronic settlement messages through SEP in number of 70.8 million that makes 45% of their total quantity

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