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Privatbank threatens to deactivate Apple Pay and Google Pay and to disconnect private entrepreneurs from terminals

Privatbank will deactivate services like Apple Pay and Google Pay if the Parliament obliges banks to reduce the commission for acquiring (payment for using the bank's services by businesses). It will also negatively affect the work of cashless payments for private entrepreneurs.

The bank predicts that the payments market will lose hundreds of millions of hryvnias of bank investments. This was reported by the press service of Privatbank.

Banks will be forced to take such a step, since due to such a decision of the Parliament, the cost of transactions will increase through the expenses of issuers and additional commissions. In addition, the cost of cards servicing for clients will increase—the average price will reach 200 UAH per year.

Entrepreneurs and banks are discussing reducing the commission for the ability of business clients to pay with cards. Now, if a business accepts payment through POS terminals or using a card online on the website, the bank that supplied the entrepreneur with a POS terminal or virtual terminal and the bank from which the funds were transferred receive a commission of 3% for the operation.

Also, the adoption of the law will lead to the regulation of the non-cash transactions cost. Therefore, banks will be forced to cancel the grace period for credit cards. This will increase the cost of loans servicing by 3-3.5% per month.

In particular, Privatbank noted that more than 119,000 entrepreneurs and small business outlets might lose access to payment technologies and the ability to receive non-cash payment.

After all, the forced reduction in the level of banks' commission for non-cash payments will make the operation of POS terminals in small retail outlets and among entrepreneurs unprofitable.

Also, POS-terminals will become unprofitable for banks in retail outlets with a turnover of less than 33.000 UAH per month.

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