Ukio Bankas AB : Ukio bankas payment card turnover increased 23.7 per cent during 2012

2013-01-25

?kio bankas clients are increasingly often using payment cards - this was demonstrated by an increase of more than a fifth in the number of transactions with payment cards last year compared to year 2011. Payment card turnover has also significantly increased - in 2012, against 2011, it surged 23.7 % to LTL 675 million. Over 2012, compared with 2011, the number of payment cards issued by the bank went up by 6.6 % - at the end of the last year the number of payment cards exceeded 99.3 thousand.

In the words of Jovita Platenkovien?, Deputy Director of ?kio bankas Payment Cards Department, among all payment cards the greatest popularity was enjoyed by debit cards - last year, as against 2011, the turnover of payments for goods and services by debit cards surged by 38.6 % and amounted to LTL 102.2 million. A growth in the number of transactions by these cards during the period in question was also significant - 27.8 %.

"Debit cards have become a usual instrument of settlement. Since these cards are generally selected for the transfer of regular income - salary, pension or student allowance, they are increasingly often used for daily purchases," ?kio bankas Payment Cards Department Deputy Director Platenkovien? said.

Settlements for goods and services by ?kio bankas credit cards also markedly grew, even though not as rapidly as those by debit cards: the turnover rose 15.4 % (up to LTL 138.1 million), and the number of transactions - 4.7 % year on year.

As noted by Ms Platenkovien?, despite a rise in the popularity of card purchases whose total turnover amounted to LTL 240.3 million last year, the cards are still often used for cash withdrawals - last year both the number and the turnover of cash withdrawal transactions grew.

"We have further observed different habits of consumers having different cards - the major part of the turnover by debit cards, in contrast to credit cards, goes to cash withdrawals. This leads to the conclusion that in the case of travels abroad individuals generally tend to use the credit card for settlements for goods and services, but are chiefly used to withdrawing most of their regular income transferred to the debit card," Ms Platenkovien? says.

Cash withdrawals altogether represent 64 % of the total card turnover. Over 2012 the number of cash withdrawal transactions went up 15.6 %, while the turnover increased 23 % up to LTL 434.9 million. The major portion of cash withdrawal transactions, 94.4 %, was executed by debit payment cards.

According to Ms Platenkovien?, even though the growing trends in settlement transactions for goods and services as well as turnover should be evaluated positively, compared to other European states and even for instance neighbouring Latvia or Estonia, still much can be done in promoting settlements by payment cards and reducing cash use.

With the aim of making card settlements yet more accessible last year ?kio bankas devoted particular attention to the development of the payment card service network. As maintained by Payment Cards Department Deputy Director Platenkovien?, last year ?kio bankas continued active introduction of POS terminals for electronic cards in cooperation with various trade and service outlets. The payment card turnover achieved through the POS terminals introduced by ?kio bankas in 2012 exceeded LTL 42.2 million - twice as big as in 2011.

The client service network of ?kio bankas, a provider of financial services for a third decade already, comprises over 60 units across the country. Reduced service rates are applied to ?kio bankas payment cards in more than 260 ATMs of the joint network (uniting ?kio bankas, Danske Bank, Citadele, Nordea, and ?iauli? bankas ATMs). Cash is accepted and deposited at 36 Lithuanian post-offices and 1 640 Perlas terminals (in the near future this service will be available within the entire Perlas network comprising 1 800 terminals).