Income declines and increased expenditures: Impact of russian invasion on Ukrainian finances
Ukrainians have adapted better than expected to the challenges posed by the full-scale Russian invasion, CEO of the national payment service UAPAY, Yulia Fedosyuk, wrote in a column for NV Business on Jan. 30.
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Fedosyuk highlighted significant changes in Ukrainian spending during the fall of 2023 compared to the same period the previous year, as indicated by UAPAY’s statistics. “Over half (53%) of Ukrainians note a decrease in their incomes, with 30% stating a substantial reduction. Meanwhile, 67% agree that their expenditures for 2023 have significantly increased,” noted Fedosyuk.
She also pointed out that during the three quarters of 2023, the National Bank of Ukraine recorded a steady rise in the share of non-cash transactions. “By the end of autumn, it accounted for 63.3% of the total amount of card transactions, reaching 93.5% in quantity, compared to 62.1% and 92.8% in the second quarter of 2023,” stated the CEO of UAPAY.
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“The segment of online payments for goods/services demonstrated significant growth: the average check in Q3 2023 was 504 UAH ($13) compared to 409 UAH ($11) in 2022. We also observe a positive trend in non-cash transactions among our clients, with MasterCard surpassing VISA. In 2023, Mastercard increased its transaction share to 56.1% in volume and 56.7% in quantity,” Fedosyuk added.
Moreover, online payments through Google Pay and Apple Pay are gaining more prominence, actively displacing traditional card-based payments. In 2023, Apple Pay accounted for 29.2% of the non-cash payment amount, more than twice the previous year’s result (13.6%). Google Pay’s share decreased from 14.2% to 13.7%.
According to UAPAY’s data, expenses on marketplaces, the most significant category for non-cash payments, decreased by 25% in 2023. This led to a:
244% increase in spending on government services due to access to registries
Ukrainians spent 228% more on books, immersing themselves in reading
A threefold increase (197%) in education expenditures
Doubling (108%) of sports-related expenses
Increased payments in the food service category by 77.5% among UAPAY users.
Earlier reports indicated that more than half of Ukrainians believe that entertainment during wartime is unacceptable, with Western residents most likely to agree and Kyiv residents least likely, as 45% of Kyivans do not agree with this statement.
Read also: How Rozetka online marketplace grew and adapted to the war – founder profile
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