Payment systems and methods in Ukraine
Ukraine is becoming a popular European travel destination, offering beautiful places to visit with a broad range of tourist activities. So why not explore this unbeaten track before Ukraine becomes overrun with tourists?
It’s always a good idea to prepare for your trip in advance so everything goes to plan. One way to do this is by learning more about the payment methods available at your destination.
The Ukrainian payment system is surprising and the country as a whole is open to new trends and technologies, aiming to be a leader in European digital transformation.
Fin.do has the latest trends on its radar and we are ready to share them with you!
Despite the increasing popularity of digital payment methods, Ukraine is still one of the top 10 countries most reliant on cash, in fact, it makes up around 60% of transactions.
And, according to Merchant Machine research, Ukraine ranks as the 5th country in the world where cash dominates as a payment method.
The National Bank of Ukraine (NBU) considers Mastercard and Visa to be among the country’s top payment methods, alongside NovaPay and Western Union.
70.3% of Ukrainian card users prefer Mastercard, while 28.5% use Visa and 96.6% of transaction value is made by debit cards. In 2020 Ukrainian banks began issuing cards under the UnionPay International system, which allows payments to be made in China, Ukraine, and over 170 other countries.
The recent global pandemic and quarantine restrictions have led to a rise in cashless transactions, including online payments. Ukrainians are actively switching to cashless payments and are using electronic commerce services more often.
Almost 87% of card payments were cashless in 2020 with the numbers growing. That is a large increase from just five years ago when it was at 70%.
That’s why faster and more convenient options, such as card-to-card transfers, are gaining in popularity among Ukrainian users. With Fin.do, you can easily send money from anywhere to anywhere, no need to cash out.
Ukrainians constantly embrace new technologies to become active users. That’s why contactless cards, smartphones, and other NFC devices are becoming hugely popular as they are fast, secure, and convenient.
According to Mastercard statistics, Ukraine is one of the top 5 countries in the world in terms of mobile payments and NFC. As for Visa, 80% of all non-cash payments in Ukraine are made using contactless methods.
87% of bank customers are ready to make payments using mobile applications, and 58% already use them, which is the highest figure in Europe after Austria. 79% of respondents are engaged in online shopping from their smartphones, and 67% use online banking.
Also, Ukraine is among the top ten European countries of payments made by smartwatches and bracelets. Apple Pay is the only payment system that supports wearable devices in Ukraine as Google Pay is not officially available.
Since 2018, Ukraine has been using the International Bank Account Number (IBAN) system, and all bank accounts are now operating according to the IBAN standard.
The use of IBAN is mandatory for all Ukrainian bank customers when making both national and international money transfers, including cross-border transfers.
Unfortunately, this payment method comes with high bank fees, and it takes a lot of time for the money to be received. That’s where Fin.do comes in, as we transfer instantly avoiding high fees!
The future of crypto-payments in Ukraine
Ukraine, being one of the most active crypto nations in the world, is eager to become more friendly to blockchain companies. The government and the local crypto community are working together to make Ukraine attractive for crypto startups by offering a simplified procedure for tax reporting.
The local government believes that crypto payments will be allowed in Ukraine similarly to US Dollar payments. The new law will also officially enable Ukraine’s central bank to issue a digital currency: the digital hryvnia.
Thanks for taking our brief tour of Ukraine’s payment systems and methods. What did you think, and what payment methods have you used in Ukraine? Drop us a comment and let us know.