Imagine your life without a Bank card: how does it feel to stand in queues to pay for communal, or to be paid in accounting. Without a map it is impossible to make a purchase on the Internet, and to send the relatives money, have to go to the post office to formalize the transfer and to wait a few days.
The use of Bank cards has become an integral part of life of modern Ukrainian. The number of online payments is growing every year and after a few decades of cards will completely replace cash, experts believe.
The website “Today” figured out how Ukrainians use banking cards, and why non-cash payments to displace paper.
Why non-cash payments are replacing bills
In the European Union, the level of payment has reached 90%. For example, in Scandinavian countries even a bottle of milk in the supermarket pay by card. In Norway a few years ago started a major campaign against cash, and Denmark plans to close the last monetary court toward the end of this year.
There are several reasons why developed countries refuse bills. First, as shown, it allows to reduce the number of robberies, secondly, to leave no means of livelihood in an illegal business.
The main advantage of cashless payments for the Ukrainians – security. According to the Ukrainian interbank Association, only 1.2% of cardholders in Ukraine faced with fraud. This is one of the lowest in the world. In addition, withdrawals from the card can be easily tracked. The risk to lose cash in the times higher.
“To seize the money on the card is much harder. Need to know the password, the code word. Even if the card is stolen to pay it will be difficult. After each operation, such as the Internet, the Bank confirms a special code that comes on the phone of the card owner. And most importantly, the map at any time to block,” – says the Chairman of the management Board of FUIB Sergey Chernenko.
Least cards are retired
Number of prepaid card purchases in the past year increased by 42%, according to the Ukrainian processing center. A tendency to increase the share of cashless payments in the market for several years and is celebrated in the National Bank. “Only in the third quarter of 2016, the Ukrainians have made 459 million beznalichnyi operations using payment cards in the total amount 149,5 billion, is by 16.56 billion more than in the second quarter of last year,” – notes the regulator.
According to one of the largest Ukrainian banks, FUIB, almost everyone who has a map, it is calculated at least five times per month. Most often Ukrainians buy goods in shops, make a payment via Internet transfer funds.
Increasing the number of enterprises that provide the opportunity to pay for their goods and services with cards. According to the NBU, in the first nine months of 2016 the number of such enterprises increased by 6% to 139 thousand. Paying for goods by card, you can not worry that the seller will give the wrong change. In addition, some supermarkets have a separate self-checkouts where the card can be used to pay for products without waiting in line.
PJSC “FUIB”. Us ViDi banksky of the hotel. Bankseta Board of the NBU No. 8 from 06.10.2011 R. General Board of NBU № 8-2 from 12.02.2015 R.
Now the Bank card can be found in the purse of any Ukrainian. However, 90% of cardholders who received a pension or salary, immediately go to the ATM for cash and take part of the funds. While more than half of Bank cards, the Ukrainians opened on the initiative of the employer, says the research company GfK.
However, this issue can be traced to a positive trend. In 2014, employers initiated the opening of 55.9% of the cards, and last year -52%. Along with this, a growing number of Ukrainians, who on their own initiative open a Bank card. Two years ago the figure was 38.8 per cent, and last year to 40.1%. Reduced the number of inactive cardholders (those who use Bank cards only for cash withdrawals). If 2014 was 34.3 per cent at the end of last year – a total of 27.4%.
“With the help of maps, you not only waste, but also to earn money. For example, the person received the salary. On the Internet, he can open the Deposit, which allows you to freely dispose of money. Put on a part of the funds. And when you need the money freely to transfer the required amount back to the payroll card. Thus the Bank balance will continue to accrue interest”, – noted in the Bank FUIB.
*Data research iVOX Ukraine
By the way, some services without a Bank card may not be used. For example, to pay for the app in GooglePlay, subscribe to a foreign online publication or to access pay-TV channel.
Cashless banking in Ukraine: what will change in a few years
“International institutions recommended Ukraine to increase the volume of cashless payments. Moreover, foreign partners insist that we much faster would shorten the amount of cash payments”, – says the Executive Director of the International Fund blazer Oleg Ustenko.
The growth of volume of cashless payments will bring the economy out of the shadows. Often “gray” operations are carried out in cash as Bank transfers are easily tracked.
“Cashless momentum often “white.” They pay taxes. The more revs going through the banks, the more the state has opportunities to Supplement the budget and to spend money on public services. In addition, non-cash payments allow you to refuse collection. Another side effect is the increase in the penetration of banking services, financial literacy and the promotion of Ukraine to modern standards”, – said the expert of the Center for economic strategies Mary Repko.
2017 bankers called the year of contactless cards. Now in Ukraine there are two technology: MasterCard PayPass and Visa payWave. Without entering the PIN, you can pay with PayPass in the amount of 100 UAH, including to pay the fare in the subway in Kiev, and payWave – to 500 hryvnia. If, for example, goods worth UAH 600, after reading the card will need to enter a PIN. According to the NBU, at the moment, Ukrainian banks issued 1.2 million such cards.
As stated in the report of the National Bank, by 2020, Ukraine will implement the project Сashless economy. The amount of cash plan to reduce to 9.5% of GDP (in 2015 the volume of cash was 15.6%). Banking analysts believe that the number of cashless payments in Ukraine will grow, and the number of ATMs is reduced.