Verifone (NYSE: PAY), a world leader in payments and commerce solutions, announced that it has been selected as the payment solution and service provider for PrivatBank, the largest acquirer in Ukraine. 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 with financial services. Approximately 20,000 Verifone VX 520 terminals are expected to be deployed by September 2017. With this, PrivatBank aims to increase its network for payment and contactless cards acceptance by 20 percent in 2017.

Verifone with local distributor, Servus Systems Integration Ltd., will be PrivatBank’s single source for all payment services including software, warranty and logistics. 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. We will implementing the latest and most relevant payment solutions that are ideal even for small business owners, accepting multiple payment options like the classic and contactless. It will also significantly reduce the complexity we would face if we were to manage our merchant payment system offerings ourselves,” said Eugeny Vasiltsov, Head of Privatbank Retail Business Cooperation Department. “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 the region, 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 Onur Altinbas, VP, General Manager VF Turkey, EE & CIS. “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.”

Privatbank deploys 120,000 POS terminals today including 80,000 with contactless acceptance. According to Privatbank, the density of POS terminals per population of a thousand is two to three times lower than in Poland, seven times lower than in Turkey, and almost 10 times lower than the United States.

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About Verifone
Verifone is transforming everyday transactions into opportunities for connected commerce. We’re connecting payment devices to the cloud—merging the online and in-store shopping experience and creating the next generation of digital engagement between merchants and consumers. We are built on a 35-year history of uncompromised security with approximately 30 million devices and terminals deployed worldwide. Our people are known as trusted experts that work with our clients and partners, helping to solve their most complex payments challenges. We have clients and partners in more than 150 countries, including the world’s best-known retail brands, financial institutions and payment providers.

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Kwiyoung Baumgarten
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