Visa's Vice President in Ukraine: We're considering turning our network into a foundation for a cryptocurrency ecosystem.

Consumers of financial services often overlook the critical importance of the smooth operation of payment systems. Yet, they play a vital role in facilitating the majority of transactions within any economy. It is no surprise that the exit of major international players Visa and Mastercard from the Russian market in 2022 was one of the most significant financial sanctions felt by most Russians.

However, much has changed since then. Western solidarity in support of Ukraine has waned, and discussions are already underway in Russia about the potential return of expelled companies to its market. Against the backdrop of increased "economic cooperation" between Moscow and Washington, such a move no longer seems impossible.

"I believe in the strength and common sense of my company. Everything will be considered and within the legal framework," says Tatiana Chernaya, Vice President and Regional Manager of Visa in Ukraine, who took the helm of the Ukrainian division a month ago.

Just before the change in regional management, Visa significantly increased its market share, almost equaling Mastercard. Currently, the payment system's share may exceed 50% of the market following Monobank's decision to transition all its non-premium clients to Visa.

What did this cost the payment system? Chernaya diplomatically avoids the question, as she does regarding whether her company is conducting similar negotiations with other banks: "As long as it hasn't been reported in the newspapers, everything is confidential."

In her first interview in a managerial position, Chernaya discussed the payment system's policy regarding Russia, the company's perspective on crypto-assets, the myth of double conversion, the National Bank's battle against drops, and the results of the "National Cashback" program.

On the difference between Visa and Mastercard

- What is the difference between Visa and Mastercard?

- Standard technologies and similar approaches. Visa's goal is accessibility, security, seamless operations, and additional services for partners and cardholders. Differences exist at the level of the final product from the bank: what conditions for services are offered.

- So for consumers, there is no difference in which card to use?

- Generally, yes. If we delve into details, for example, in premium products, each system works on their enhancements independently.

- Are we talking about "gold" and "platinum" cards?

- Yes, each system may have its own innovations: whoever first conceived, proposed, or implemented something, that's how it works.

There is also a difference in more complex technologies. For instance, tokenization (the replacement of bank card details with a unique identifier used for transactions via smartphones and other gadgets - EP).

One of our key areas is e-commerce. There may be additional opportunities for users from one payment system or another. New players are entering this market, leading to competition for quality and speed.

- How is the global payment market divided between Visa and Mastercard and who is currently leading?

- Visa is leading. We are not particularly interested in this statistic because for all payment systems, the main competitor is cash, and there is still a lot of it. In Ukraine, according to the latest data from the NBU, less than 65% of transactions using payment cards are cashless. However, we understand how many cash transactions are made outside of cards and banks.

- You declare the goal of developing cashless transactions. A few years ago, former Deputy Head of the President's Office Rostislav Shurma proposed to ban all cash. What is your opinion on such an idea?

- In all markets, we advocate for open market conditions. The market regulates itself better when convenient, secure, and technologically advanced solutions emerge.

- Consumers vote with their wallets.

- With their wallets and actions. Any regulation is a contentious issue because it is hard to enforce. Market conditions balance the needs of all market players.

On the transition of Monobank clients to Visa

- According to the NBU, in 2020, Visa issued every third active card in the country, and by December 2024, you were almost equal to Mastercard: 48% versus 51.6%. What is the current situation now that Monobank clients have switched to Visa?

- We are also looking at the NBU statistics, which should be updated soon. Our market share has been growing over the past five years, primarily due to the efforts of the Ukrainian Visa team. We have more people investing in the market, we adapt technologies to market needs more quickly, and we launch faster.

- What did Visa offer Monobank for them to switch their clients to you?

- We offer absolutely equal conditions for all players. Monobank, like any other Ukrainian bank, receives a comprehensive package of solutions that, on one hand, encourages them to work and grow their business, while on the other hand, allows for continuous improvement of the customer experience through our solutions.

- Earlier, you mentioned that there is no difference between Visa and Mastercard for the end consumer. What specific solutions could you offer the bank to have them transition all clients to you?

- We are very focused on everything related to further digitalization of products. For instance, in terms of tokenization, Ukraine ranks among the top three global markets. Currently, 53% of all transactions conducted face-to-face, meaning in-ground acquiring, are transactions using tokens.

- So using NFC?

- Yes, these are payments made using phones or watches. We are also focused on enhancing the transaction experience in e-commerce.

We are launching the Visa Click to Pay technology, which, in combination with Visa Passkey, will replicate the offline acquiring payment experience. Currently, 10-20% of e-commerce transactions are incomplete. For the bank, these technologies represent additional revenue, as they start earning from operations that were previously incomplete.

- Are these technologies being implemented for all banks?

- Of course.

- So what is the benefit for Monobank?

- As I mentioned, there is no secret. All solutions are available to all banks. Any company, whether a bank or a payment system, consists of the people who work there. Some are more persistent and do a better job of explaining and helping to implement solutions on time. The bank decided that it was comfortable working this way.

- Did this cost you anything as a company?

- Nothing additional.

- Are you negotiating with other banks that are actively working in retail to transition their clients to Visa as well?

- We work with all banks. It is clear that we are interested in having more of our services become the preferred service for our bank clients and consumers. Work is ongoing from both sides: from Visa and from the banks. We bring solutions to the market and present them. The decision to adopt them lies with the bank, and again, it depends on how quickly the bank's team works and how interested they are.

- And still: are you negotiating with other banks to transition all their clients to Visa?

- You understand: until it has been reported in the newspapers, everything is confidential.

On double conversion and drops

- Unlike Mastercard, Visa is an American company...

- Mastercard is also an American company.

- But if in the European Union you pay with a Visa card in hryvnias, double conversion occurs: first from hryvnias to dollars, then from dollars to euros. There is no such issue with Mastercard cards.

- This is another myth and, apparently, it is from this that the "message" that Mastercard is a European company originated