Ukraine’s plans to introduce a mobile payment system (MPS) as part of a transparent cashless economy could prove a great success, a round table on the subject heard in Kyiv on 13 July.
Some 15% of all subscribers are expected to be making payments through mobile devices within two years, according to research presented at the IQ Business Centre event, attended by mobile market players and representatives of the Ukrainian Government and industry associations.
“Mobile Payments System: Gateway to Transparent Cashless Economy?” was organised under the EU4Business Forbiz project, which aims to create a better business environment in Ukraine.
Great potential for growth
The Ukraine mobile payments market had great potential for growth, Forbiz Team Leader and SME Policy Expert Matthias Halder told at the round table. It would not only provide benefits for big players, but create a level playing field for all market participants, including SMEs.
The National Bank of Ukraine plans to increase the volume of non-cash payments to 55% in 2020, as part of a large-scale government project towards a cashless economy.
Regulatory obstacles to overcome
Oleksandr Kubrakov, head of IT and Telecom sector at the Better Regulation Delivery Office, said the MPS market in Ukraine could rise to 7.8 million payments within two years, representing a turnover of USD 650 million.
Main regulatory obstacles were:
- How to return unused funds to subscribers
- Transaction limits for subscribers
- Remote identification, and
- Establishing permissions for emitting e-money.