The payment card market has improved its performance only qualitatively over the year, while continuing to decline.

Payment card market improved its indicators only qualitatively over the year, continuing to decline

Data published by the Ukrainian Processing Center indicate that although the payment card market in Ukraine is currently in a crisis and the relative indicators of the frequency of use of one active payment card have become higher this year, however, upon closer examination, this indicates little development of the non-cash payments market over the year. The frequency of use of transactions per payment card remained virtually the same, the market is stagnant.
If, in terms of the number of transactions per payment card according to the seven months of 2009, there were 3 transactions per month, then for the same period in 2010, in terms of one card, there were 4 transactions per month. According to expert estimates, the intensity of use of one active payment card increased by 25%, while the market contraction in 2009 was proportional - according to the results of 2009, banks had to write off as inactive almost every fourth plastic card. The non-cash payments market has not actually developed over the year, as evidenced by analytical data.
In terms of the intensity of use of one payment card, as noted by the "Ukrainian Processing Center", compared to January-July 2009, the number of transactions over the first seven months of this year increased by 7% and amounted to 250 million operations. In fact, the intensity of use of active payment cards has increased, but it is too early to talk about absolute market growth today. Ukrainians, who used bank cards to make non-cash payments before the crisis, continued to use bank cards as a payment instrument. The plastic card market did not grow quantitatively, the number of active payment cards was decreasing.
According to the Ukrainian Processing Center, based on statistics for the first seven months of 2010, the number of ATMs registered in the UPC system also increased — 7,618 ATM terminals. Financial institutions began to more actively develop their terminal networks, and as a result, the number of POS terminals serviced by the UPC today amounts to approximately 40 thousand. However, the pace of development has slowed down due to the adoption by the Ministry of Economy of Ukraine back in the spring of this year of a draft resolution according to which the equipping of trade and catering establishments (except for small businesses) in cities with a population of over 100 thousand people with payment terminals is postponed until 01.07.2011. For small businesses operating in cities with a population of 25 to 100 thousand residents, the deadline for installing payment terminals is extended until December 31, 2011. According to the requirements for equipping retail outlets with payment terminals, there must be at least one POS terminal for every two cash registers.
A positive moment for clients of banks that are members of the ATMoSfera association (when cash can be withdrawn from an ATM of a "foreign" bank with a commission set by "your" bank) was the increase in the number of banks participating in the system by 2 financial institutions. Today in Ukraine, there are 2,800 ATM terminals for 23 banks that are part of the partner association. Cardholders can find out whether a bank is a member of this association by contacting the help desk of their financial institution.

Source: hvylya.org