Only 38% of SMEs in Ukraine accept cashless payments – survey

Cashless payments in Ukraine accept a mere 38% of small- and medium-sized enterprises (SMEs), which is one of the lowest indicators among the countries of Central and Eastern Europe.

"According to a survey by Mastercard SME Monitor, Ukraine has one of the lowest rates in terms of the number of POS-terminals at small- and medium-sized businesses among the countries of the region. Today, only 38% of SMEs in Ukraine provide customers with cashless payment services, that is, the share of those accepting cash is 62%. In addition, according to the study, 40% of SMEs, having payment terminals, said that most of transactions are made in cash (over 80%)," according to the Mastercard's press service.

As noted, the leaders in terms of the number of POS-terminals at SMEs are the Czech Republic, Greece, Poland and Slovakia. The share of enterprises that offer cashless payments there is 75%, on average.

Read alsoUkraine ranks fourth in NFC payments – expert

According to the European Central Bank, there are 6,155 POS-terminals per 1 million citizens in Ukraine, while the average figure for the countries of Central and Eastern Europe is 17,909.

Representatives of Ukraine's SMEs say low number of POS-terminals in the country is due to a number of obstacles that hinder the transition of SMEs to cashless payments. In particular, respondents indicate low purchasing power (26.1%), bureaucratic procedures (22%), and high taxes (11.9%).

The largest number of small and medium- sized enterprises in Ukraine are engaged in the service sector (20.6%), retail trade (20.2%), manufacturing (12.8%), and FMCG (11.5%).

As UNIAN reported earlier, Ukraine ranked fourth in the world in terms of the number of contactless payments made via mobile devices, including e-bracelets, and smartwatches. At the same time, 37% of the adult population in Ukraine have no bank accounts.