Factors stimulating payment card development: a banker's perspective

Anna Dovhalska, Deputy Chairperson of the Management Board at GLOBUS BANK, pointed out the main factors stimulating banks towards active development of payment cards. Specifically, these are:

1. Increased demand: the popularity of cashless payments and online shopping is driving demand for payment cards among consumers.
2. Market competition in financial services: to attract new clients and retain existing ones, banks must actively develop new products and services, with payment cards taking a leading role.
3. Convenience and speed of payments.
4. Commission income from transaction processing, meaning card development represents a potential source of profit for banks.
5. Technological progress and the implementation of innovations in the payment segment, such as NFC technology.

According to her forecast, the trend towards active development of payment cards will continue in 2024. She expects that by the end of the year, the total number of cards may increase on average by 5-7% to 120-123 million units.

"Payment cards are a significant component of the development of banking services and products. For several years, Ukraine has played a leading role in the development and implementation of technological innovations. Therefore, it can be predicted that in the near future, the payment card segment, as the most widely used 'form' of connection between citizens and banks, will actively develop. At the same time, we expect intensified competition among banks for clients, making card issuance even more beneficial for consumers," concluded Anna Dovhalska.