Ukrainians are increasingly paying cards at retail chains
According to the National Bank of Ukraine’s annual report, from 2015 to 2019, the share of cash relative to gross domestic product (GDP) declined from 17.8% to 9.7% by early 2020.
The decrease in cash share in the NBU is explained by two factors: the increasing popularity of cashless transactions and the increase in the number of cashless payments in Ukraine. Most commonly, Ukrainians use card payments in retail chains, this method of calculation is used by 51.2% of the population.
“Ukrainians are increasingly paying cards in stores, transferring from card to card. Non-cash transactions make up half – 50.3% of all transactions with payment cards,” reports National Bank.
By the end of 2020, Ukraine’s cash share in GDP is expected to decrease even further – less than 9.5%. According to National Bank forecasts, the level of cashless payments will increase from 50.3% in early 2020 to 55% in early 2021.
This will be facilitated by the development of the necessary infrastructure for cashless payments. In particular, the number of payment terminals per million people should increase from 8.3 to 11.
Summary PAYSPACE magazine
Recall that the development of cashless payments using payment cards in Ukraine has a positive effect on the financial habits of Ukrainians. If the first cardholders often withdraw cash from ATMs, non-cash transactions today prevail in quantity and volume.
It has been reported that Ukrainians make non-cash payments, both use contactless cards, and smartphones and other NFC devices. The total number of such operations (non-cash and cash received) using cards from Ukrainian banks in 2019 amounted to about 5 billion pieces, and their volume is 3.5 trillion UAH. Compared to 2018, the number of such transactions increased by 29.2%, and the amount – from 24.3%.
Read: The NBU recommends that banks reduce fees for cashless payments.