Alena Degrik: What will bring the launch of the largest payment system in Japan in Ukraine?

							Алена Дегрик: Что принесет запуск крупнейшей платежной системы Японии в Украине?

Ukraine plans to enter the Japanese payment system JCB: Japan’s largest and the third largest in the world. About this recently reported, the national Bank of Ukraine. Of interest in this decision told Takashi to Suetsugu, General Manager of JCB. The head of the NBU Jacob Smoliy, in turn, welcomed the intention of the Japanese side. The words are all beautiful. Try to understand that this will bring Ukrainian business, and why is it beneficial to Japan and how to react to domestic fintech companies

JCB and Ukraine

JCB — one of the five largest global payment systems in the world by volume of cards issued and the volume of operations on payment of goods and services. At the end of 2017 cardholders JCB was 117 million people — almost equal to the population of Japan. The JCB cards are serviced in more than 190 countries, and the emission of payment cards of JCB is carried out in 23 countries.

JCB working on the market for 57 years, and a leader in the credit card company began back in 1968. Already in the 1980s the company was beaten out in world leaders.

Basic services is, of course, operations with Bank accounts as well as hotel booking and ticket payment services and online purchases in almost any country in the world.

But the main feature JCB — SS-ka gives privilege to Chinese, Japanese and Korean tourists in the EU and in the USA. They can use the guide JCB PlazaWeb to find interesting offers in the country where they were going. Asian customers are also available pleasant trifles in the form of free Internet at the airports. In addition, JCB gives discounts on tours to Japan to their customers, as well as a 10 percent discount on the visa.

Loyalty program JCB in the case of its entering the Ukrainian market will help to attract to our country the tourists from China, Japan and South Korea — and this is a huge, mnogootraslevoy and hitherto unexplored sector for Ukraine. And the Ukrainians-JCB customers, in turn, will receive a discount on traditionally expensive trip to Japan. If you stack it with bonuses/discounts from the same Turkish Airlines, the amount ceases to be unaffordable for a larger segment of tourists.

I’m not going to turn yourself into a travel blogger (and sorry) to better assess the business interest of JCB on the Ukrainian market. First, the emergence of yet another global payment system will also make Ukrainian players to step it up in order not to lose in competitive struggle. If JCB will decide to issue co-Bagirova card with one of working in Ukraine, the SS, the Ukrainians, having its card will be available to all holders of JCB cards. By far, we can expect the launch from PS “Space”, as well as integration with deep infrastructure capabilities Mastercard like fare collection, and loyalty programs.

Secondly, JCB makes a tactical move, going to Ukraine — thus Japan can beat PayPal, which in Ukraine is increasingly reminiscent of the protracted melodrama. Read more told about it in the comments for Remind, PayPal considers Ukraine a “priority region”, unlike Google Pay, Android Pay, which greatly exceeded the expected KPI to start with us.

Third, not long ago, I painted the motivation of China Union Pay to start work in Ukraine. In addition to General plans for development in Eastern Europe, there is an element of traditional economic rivalry between China and Japan

Why JCB need Ukraine?

Our country is tens of millions of people ready to use with all global services. Just look at the cash in the stores and at the turnstiles of the metro, as the Ukrainians “came” already mentioned Google Pay and Android Pay, or to look statistics of use of Uber.

So, over the year the number of contactless transactions in Ukraine increased by 68 times, primarily because of the ease of use of mobile wallets. And the number of devices connected to contactless payments, is growing by 25% every month. Do not get tired to talk about it, really. Plus, the stabilization of the Ukrainian currency market signal to foreign companies that want to come here and develop.

Thus, potentially, the Ukrainian market for JCB — tens of millions active users of payment systems, willing to spend money and try out new technologies. The JCB management need to be prepared for months waiting for the launch of payment infrastructure in Ukraine, and also to the fact that the market is already divided between Visa and Mastercard with its own loyal users. Fortunately, JCB vast experience in entrance into new markets.