Ukraine Country Report

Ukraine Payments Market | Country Report

A comprehensive overview of the cards, payments and consumer banking market in Ukraine.

UKRAINE CARDS AND PAYMENTS REPORT | KEY FACTS

• Since the annexation of Crimea by Russia in March 2014, Ukraine has been in turmoil: the economy shrank by ten per cent in 2015 while inflation hit 43 per cent.
• In a move to consolidate the struggling banking sector, the central bank has declared 63 banks insolvent since the end of 2014.
• Consumer credit outstandings fell by 17 per cent in 2015 as consumer confidence eroded and struggling banks restricted lending.
• Debit cards are the most popular form of payment card in Ukraine, accounting for 80 per cent of total cards in circulation and 91 per cent of billed volume in 2015.
• The number of POS transactions on payment cards exceeded the number of ATM transactions for the first time in 2014.
• Credit cards are predominantly used to borrow cash; cash advances make up three- quarters of billed volume, and the rollover rate is extremely high at 86 per cent.
• Mastercard has strengthened its position considerably in the payment cards market, growing its share of cards from 36 per cent in 2009 to 55 per cent in 2015.
• PrivatBank is the dominant bank in terms of issuing and acquiring, having a market share of just over 50 per cent in both.
• Acquiring in Ukraine is carried out by the issuing banks, with reduced pricing for on- us transactions a key competitive strategy.
• The average MSC increased to around 2.0 per cent in 2015, having fallen to 1.6 per cent in 2014.