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EXPANSION OF THE PRACTICE OF BANK PLASTIC CARDS
I. Sayfiddinov, candidate of economics sciences R.A. Isroilov, master Tashkent institute of finance (Uzbekistan, Tashkent)
DOI: 10.24411/2411-0450-2019-10715
Abstract. This article examines the rapidly growing market of banking plastic cards, shows the degree of integration of the banking system and society, analyzes market problems, develops an acquiring network infrastructure, and ensures the stability of technical equipment, examines the positive development dynamics by promoting bonus programs by banks, notes the development of the Uzbek national payment system.
Keywords. Bank, bank card, payment card, card holder, transactions, payments, national payment system HUMO.
The development of the economic sphere of any country is impossible without an effective payment system with effective payment mechanisms. Payment systems, as the basis for the sustainability of the state's financial system, reduce transaction costs in the economy, increase the efficiency of using financial and other types of resources, increase the liquidity of the financial market, and facilitate monetary policy.
As international experience in the development of payment systems in different countries shows, the development of payment systems is associated primarily with expanding the list of payment instruments and services, increasing their profitability by reducing transaction costs. The reduction in the cost of banking services related to making payments is facilitated by the widespread use of online payments through bank cards.
A payment card can be defined as a personified payment instrument providing its holder with an ability to carry out cashless payment of goods and services, and to receive cash funds in banks' branches or offices, as well as in ATMs. Such branches, offices, ATMs and other service points make up a payment card service network[1].
A payment card is generally a plastic card of standard dimensions (85.6 mm x 53.9 mm x 0.76 mm) made of special mechanically and thermally resistant plastic material. Any payment card contains the bank holder's details for identification purposes. Such details generally include the logos of the issuing bank
and payment system, the bank holder's name, his account number, the expiry date of the payment card, and sometimes his photo, signature or some other personal data. Payment cards usually provide two identification options: visual identification (using the aforementioned holder's details) and barcode which can be read using specially designed card readers[2].
A bank card issuer is a bank that issues plastic payment cards and provides them to customers for the purpose of simplifying transactions. Such actions are made by the bank card issuer for a commission fee amount paid by each customer. A card holder is a person which holds a payment card under an agreement entered into with the issuing bank. Bank card holders can include both individuals and legal entities. Bank card holders can use their payment cards for effecting payments for goods or services and for receiving funds from other payment system participants. An acquirer bank provides the full range of services for interaction with payment card service points such as processing of authorization requests, transfer of funds, acceptance of paper and electronic documents, etc[3].
If we dwell on the development of the infrastructure of bank plastic cards in the country, as of April 1, 2019, there were 18 192 thousand bank plastic cards in circulation and their number increased by more than 500 thousand compared to the number as of January 1, 2019.
01.04.2017 01.04.2018 01.04.2019
Figure 1. Number of bank cards in circulation in the Republic of
Uzbekistan, pieces[4]
If the number of payment terminals as of April 1, 2018 was 238,155, then as of April 1, 2019 their number was 250,200 pieces. And
as of April 1, 2018, the number of ATMs and infokiosks amounted to 6,069 units and as of April 1, 2019, 7,495 units.
Figure 2. Number of installed payment terminals in the Republic of Uzbekistan, pieces[4]
As the analysis shows, if the amount of transactions made through the trading terminals in national currency during the 1st quarter of 2017 amounted to 15,123 billion soums, then in the first quarter of 2018 it amounted to 12,724 billion soums. This figure in the first quarter of 2019 reached 15,276 billion soums, while the average monthly amount of transactions amounted to 5,091.9 billion soums.
According to the Decree of the President of the Republic of Uzbekistan dated September 19, 2018 No. PP-3945 "On measures for the development of the national payment system", the National Interbank Processing Center of the State Unitary Enterprise "Main In-
formation Center of the Central Bank of the Republic of Uzbekistan" was organized.
Successful development of the National Interbank Processing Center serves to create competition between retail payment systems that provide payment services based on bank cards, cheaper commission fees from payment service users, increasing the scale of cashless payments based on advanced technologies, further expanding the infrastructure of payment systems based on banking maps.
It should be noted that the payment devices purchased by the project - terminals, ATMs and payment cards are supplied by companies that are world leaders in their industry. All created payment infrastructure supports
contactless payments (NFC - Near Field Communication), which meets international standards and modern requirements.
Commercial banks have been assigned bank plastic cards of the national payment system HUMO, as well as payment terminals in order to establish them at trade points and provide services, including hotels, supermarkets, public catering points, and pharmacies.
In turn, starting from May of this year, a mass issue of bank cards of the HUMO payment system is planned in the city of Tashkent. The issuance of cards in other regions will be carried out in stages, as the region provides payment infrastructure.
In order to timely and fully perform the tasks assigned by the country's leadership,
expansion of the infrastructure of the HUMO payment system.
Non-cash payments represent a major part of settlements carried out by both individuals and business entities around the globe. Although the first non-cash payment means had emerged back in the ancient times, they only gained rapid development in the XIX-XX centuries, with the intensification of foreign trade between countries. As of today, the most widely used forms of non-cash payments include wire transfer, direct debit, letter of credit, payment cards, cheque, e-money and mobile payments. Their main advantage as compared with conventional payments is the short time of payment, and thus the possibility to spare both time and other expenditures.
measures are being taken to accelerate the
References
1. Schneider, Gary. Electronic Commerce. Kentucky: Cengage Learning, 2014. ISBN 978130-51-7765-9, p. 50.
2. Bragg, Steven. Treasury Management: The Practitioner's Guide. New York: John Wiley & Sons, 2010. ISBN 978-047-05-9120-8, p. 168-169.
3. Peitz, Martin. The Oxford handbook of the digital economy: modernisation of payment systems. 1st ed. New York: Oxford University Press, 2012. ISBN 978-019-5397-840, p. 123-124.
4. Information of Central bank of Uzbekistan. www.cbu.uz
РАСШИРЕНИЕ ПРАКТИКИ БАНКОВСКИХ ПЛАСТИКОВЫХ КАРТ
И. Сайфиддинов, канд. экон. наук Р.А. Исроилов, магистр Ташкентский финансовый институт (Узбекистан, г. Ташкент)
Аннотация. Данная статья рассматривает стремительно развивающийся рынок банковских пластиковых карт, показывает степень интеграции банковской системы и общества, анализирует проблемы рынка, развитие инфраструктуры эквайринговой сети, стабильность работы технических средств, рассматривает положительную динамику развития посредством продвижения банками бонусных программ, отмечает развитие Узбекской национальной платежной системы.
Ключевые слова. Банк, банковская карта, платежная карта, держатель карты, транзакции, платежи, национальная платежная система HUMO.
