USING THE INTERNATIONAL EXPERIENCE OF CASHBACK INCENTIVES FOR E-COMMERCE IN UKRAINE

Abstract

A new stage in the history of cashback began with the development of the digital economy. Thanks to modern Internet access technologies via computers and smart phones, there has been a significant increase in e-commerce and m-commerce. The article is devoted to the study of the transformation of cashback and cashback services, the analysis of domestic and foreign cashback markets. Banking institutions have issued debit and credit cards with a cashback option, online stores have acquired cashback partners, buyers use an effective tool buying online. The impact of this tool on the e-commerce development is considered. The research pays attention to intermediary organizations as participants in the relationship between a bank and a client, an online-store and a buyer. The analysis of online stores websites' functioning, that use cashback and cashback services, is carried out. The analysis of the indicators showed a growing share of e-commerce development in Ukraine and an increase in purchases by Ukrainian customers on the Internet. The study identified the lack in popularity of cashebacks and cashback services use in Ukraine. The examination of the current state of the cashback market in Ukraine has established that the range of Ukrainian cashback services is not broad. The possibility of increasing the share of online stores, which offer cashback for buying online, in Ukraine would give an impetus to extend the number of these services. A good step in this direction is to escalate the percentage of cashback buying online, uncomplicated and straightforward procedure for withdrawing funds without restrictions from cashback cards. The absence of an annual maintenance fee of cashback cards also serves to attraction new customers to the cashback services and customers to online stores. The authors give their own vision of the efficiency of measures to popularize cashback like to use the cashback mechanism launching new programs and start-ups, including at the state level, to expand the circle of banks issuing credit casheback cards. All these would contribute substantially to the electronic commerce development in Ukraine in accordance with the current state of the global economy.