As part of a three-year service agreement, Verifone will set up and manage PrivatBank merchants with point-of-sale (POS) solutions giving PrivatBank the freedom to focus on their more than 120,000 merchant clients of all sizes and verticals with financial services.

Verifone will be PrivatBank’s single source for all payment services including software, warranty and logistics. This means merchants will be able to unpack their complete POS system, set up, and begin accepting card payments within minutes. The agreement gives PrivatBank the flexibility to source comprehensive payment solutions through a monthly service model that eliminates a large initial investment, terminal management and depreciation commonly associated with payment system ownership and management.

“Our partnership with Verifone will play a major role in the journey towards broad adoption of cashless transactions in the region by significantly reducing the complexity we would face if we were to manage our merchant payment system offerings ourselves,” said Alexandr Shlapak, CEO of the PrivatBank. “Payment-as-a-service is an alternative business model that’s very attractive to many acquirers like us in Eastern Europe.”

According to industry analysts, despite the growing share of the banked population and governmental restrictions on cash payment, Ukraine remains a largely cash-based economy. However, consumers are increasingly attracted to the convenience offered by card payments thanks to rising merchant acceptance supported by leading banks that are focused on expanding their POS networks.

“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. “Designed to allow clients like PrivatBank to focus on their core business in financial services, Verifone will handle the full scope of payment solutions installment and ongoing service directly with their merchant clients.”