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Ukraine Cards & Payments Market Report

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  • Published Date: November 2016


This report provides a comprehensive overview and deep analysis of Ukraine's cards, payments and consumer banking market.
It details volumes and values for key performance indicators in the country's payments industry and an expert assessment of future trends in credit and debit cards use as well as contactless and mobile payments.
It contains detailed information on cards in circulation, transaction volumes and values as well as valuable insights into the competitive landscape and financial opportunities in the country.
The population of Ukraine decreased from 46 million at the end of 2008 to 43 million at the end of 2015. According to UN forecasts, the population is forecast to drop to about 39 million by 2030.
Economic conditions have been deteriorating since 2014 due to the political turmoil resulting from the annexation. This unrest has resulted in currency depreciation, increasing domestic debt, and high inflationary pressure.
Payment cards are the primary non-cash payment tool in Ukraine, while direct bank transfers and cheques are less common than payment cards. Debit cards are the most popular form of payment card in Ukraine, accounting for 80 percent of total cards in circulation.
Pre-tax profits on Ukrainian credit cards declined to $55 million at the end of 2015. Profit per card decreased from $29 in 2013 to an estimated $8 in 2016. This trend is forecast to take a positive turn.


  • 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 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.

Ukraine Payments Research | Report Contents

Demographics and Economy:
Outlines the key metrics and trends which influence the development of retail banking and payments in the country:

  • Population structure
  • Income
  • Mobile and internet use
  • Economic data

Retail Banking:
Explores the structure of the local banking system, its infrastructure and the leading players. Data includes:

  • Aggregate retail banking indicators
  • Bank branches, ATMs and POS terminals
  • The profitability of top banks

Consumer Finance:
Overview of consumer finance in the country. Categories analysed include:

  • Mortgage loans
  • Personal loans
  • Credit card loans
  • Vehicle loans

Credit Cards:
Industry-leading credit card coverage. We detail the past, present and future of the industry through our data and commentary, including:

  • Market size split by consumer and commercial credit cards: number of cards, transaction volume, billed volume
  • Profit pool analysis
  • Competitive landscape: networks, issuers

Debit Cards:

  • Market size: number of cards, transaction volume, billed volume
  • Competitive landscape: networks, issuers

Prepaid Cards:

  • Market size: number of cards, transaction volume, billed volume

Ukraine Country Report | Selected Extracts

Demographics and Economy
Over two-thirds of Ukraine's population live in urban areas. The industrial regions in the east and southeast are the most populated parts of the country. At the end of 2015, males made up 46.3% and females 53.7% of the total population, while those aged 15 or older comprised 84.7%

The Economy
Ukraine is a mixed economy with limited private freedom combined with centralised economic planning and government regulation. Agriculture is one of the major revenue-generating sectors, contributing nearly 10% to the total GDP. Ukraine's main trading partners are Russia, China, Germany, Egypt, Belarus and Poland.

Retail Banking
Ukraine's retail banking sector is highly concentrated, with the top five banks accounting for 54% of the total banking assets at the end of 2015. The top five banks in terms of assets are PrivatBank, Oschadbank, Ukreximbank, Ukrsotsbank and Sberbank of Russia

Consumer Finance Market
The biggest consumer lenders in the country are PrivatBank, Ukreximbank, Oschadbank, Raiffeisen Bank Aval and Ukrsibbank. All these banks have branch networks spanning the majority of the country, and this wide distribution has provided them with a competitive advantage over smaller operators.

Cards market
Cash is still the prevalent payment tool in Ukraine, with about 85% of the total transaction volume in the country being made using cash in 2015. The widespread existence of a shadow economy is one of the major reasons for the high cash usage in the country. Unofficial wage payments (in cash) are still common.

The prepaid cards market in Ukraine is at a nascent stage of development, with a low penetration level, estimated to be around four cards per 100 adults at the end of 2015.

Profit Pool
Credit card activity in Ukraine is significantly lower than that of debit cards. The absence of
a well-developed revolving credit card market and a huge volume of inactive cards (49%) has restrained credit card profitability. As a result, credit card issuers have had to modify conventional credit card business models to suit the operating environment.

Card Networks
In Ukraine, Visa and Mastercard dominate the credit cards market and the collective payment cards market in terms of both the number of cards and billed volume. Mastercard is also the leading network for debit cards in Ukraine in terms of both number of cards in issue and billed volume.

Key Retail Banks and Issuers
Three major issuers dominate the Ukraine credit and debit cards market: PrivatBank, Oschadbank and Raiffeisen Bank Aval. These issuers had a combined market share of 73% and 77% in the debit and credit card issuance market, respectively.

Acquiring and Processing
In 2015, 81% of merchant accounts and 84% of billed volume were controlled by five banks: PrivatBank, Oschadbank, Raiffeisen Bank Aval, Ukreximbank and Ukrsotsbank (UniCredit Bank). The majority of Ukrainian card processing is still conducted in-house, although the market is gradually moving towards outsourcing both acquiring processing and issuing processing.

Online Acquiring
Ukrainian e-commerce sales volume reached an estimated $3.0 billion in 2015, an increase of around 20% compared to the previous year. Online sales represented around 2% of the total retail sales in the country during the same year.

Regulatory and Markets Information
NBU and issuers have been taking various initiatives to reduce cash usage levels in the country. One such initiative made by NBU was lowering the per-day cash settlement limit for
individuals – which includes transactions with the banks, and purchase of goods and services.


Reports include detailed market and competitor intelligence on payments cards, e-money, acquiring, retail banking, and consumer credit in Europe. Analysts use primary and secondary source data and conduct in-depth interviews with senior industry executives and finance experts.

See more European country reports or explore cards & payments research reports for markets worldwide or view our latest reports.

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