International Experience in the Development of the Payment Card Market and Problems with Functioning of Payment Cards in Ukraine

Abstract

Cash, payment systems and instruments in modern conditions are the basis of the economy and life of each country, ensuring the possibility of exchange between the owners of certain goods or services, which, in turn, is one of the main conditions for the existence of credit and the State. The presence of a bank payment card gives its owner a number of advantages, including convenience during the calculation, reliability of saving the own funds, paying bills online. Bank payment cards are effective and profitable for all participants of the payment system, as evidenced by their rapid spread. For banking institutions, such operations bring profit in the form of commission income from servicing card accounts, accomplished transactions, as well as from an increase in the number of customers through the provision of new services, reducing the bank’s costs for servicing cash, etc. Bank payment cards are one of the most progressive tools for providing banking services. In the circumstances of the unstable situation in the financial market because of the hostilities on the territory of Ukraine, the coronavirus epidemic, the lack of financial resources, it becomes extremely necessary to expand and improve cashless payments due to the introduction of innovations in the payment card market. The article is aimed at summarizing the problems with functioning and development of the payment card market in Ukraine, along with the possibilities of using international experience to solve them. The article defines the advantages and disadvantages of practical use of payment cards in the financial market of Ukraine. Taking into account the mentioned shortcomings in the use of bank payment cards in non-cash payments, factors that hamper the development of the domestic payment card market are identified. The results of the study of the development of the payment card market allowed to outline the main problems of using payment cards in Ukraine. The ways of their solution are proposed and substantiated. International experience in the development of the payment card market is studied and analyzed.

Keywords

• payment card
• bank
• card market
• payment infrastructure
• cashless payments
• financial literacy