NYSE:PAY-identified fintech solutions and e-commerce management service provider, Verifone, has bagged one of the largest payment solutions and Point-Of-Sale (POS) network management assignments in the Ukraine, East Europe.
Signing a deal with PrivatBank, the largest acquirer of Ukraine’s e-commerce transactions, the Company will provide the network management service for payment solutions across a POS-base running into 120,000 merchant clients from different sectors and of varied volumes per business hour.
The contract is valid for three years from now and is estimated to be one of the most significant digitization moves within the banking and financial circles in the country.
Verifone will undertake full responsibility for all cashless payment transactions of the enlisted merchants within the region and will implement the program right from software, warranty, logistics and management of the POS network, professionally and efficiently.
Enabled as a ‘plug-and-play’ model, the system shall facilitate merchant establishments to simply connect the POS hardware into the network and start accepting card payments from customers, within minutes of its installation.
With this deal in place, PrivatBank will enjoy the advantage of sourcing a comprehensive range of services under one-window, from Verifone, and on a monthly service fee arrangement. This condition leverages the Bank with major savings of initial investments into the system. Not just that. According to the financial czars in the industry, the Bank will also save itself from the burden of the management of a large stock of e-terminals and their depreciation losses over the years.
As Alexandr Shlapak, CEO, PrivatBank, Ukraine, summed it, ‘the collaboration shall play a major role in the significant adoption of handling cashless transactions in the country and would drastically cut the complexities associated with the management of merchant payment system if handled by the bank, on its own’. “(It) is an alternative business model that’s very attractive to many acquirers like us in Eastern Europe.”, he added.
Banking regulations and Government restrictions notwithstanding, Ukraine is still a cash-based economy. But, of late, the worldwide popular concept of cashless card payment solutions have caught the fancy of the Ukraine consumer as well and leading banks are cash-in on the opportunity, by providing to their leading merchant clients, the business advantage of using POS machines with fast connections into the Bank-sponsored network.
“As Verifone’s first service-based agreement in Ukraine, we are proud to support the country’s biggest chain of branches that will enable merchants to offer consumers better, faster and more convenient ways to pay with debit and credit cards, and the newest contactless and e-payment options,” said Bulent Ozayaz, President, Verifone EEMEA, (Eastern Europe, Middle East, Africa.)
Verifone’s reliable and running model, Verifone VX520 terminal will be the most deployed hardware for this contract across the Ukraine. Nearly, 20,000 such machines are already being prepared by the Company, to be installed by Sept 2017.
For Verifone and PrivatBank, the gold rush is on.