National cashback: how can entrepreneurs get involved and what does it give?

Electronic payments are becoming increasingly popular, and the state actively supports innovative financial technologies. One such initiative is the "National Cashback" — a cashback program for cashless purchases. 

This not only encourages consumers to use their cards more but also creates new opportunities for entrepreneurs. How exactly can businesses join the national cashback program, and what benefits can it bring?

What is National Cashback?

"National Cashback" is a program aimed at encouraging consumers to buy Ukrainian products and use cashless payments. The user receives up to 10% cashback for purchasing Ukrainian-made goods. 

The list of products participating in the program is defined by the state and can be found on the National Cashback website. Stores can join the state initiative on their own. 

How to get a "National Cashback" card?

To participate in the state program, the user needs to open the "Diia" mobile app and click on the "Services" section to find the "National Cashback" tab.

Then they need to choose a bank where they plan to open a card. Cashback balances can also be viewed in the "Diia" app. Users can accumulate up to 3000 UAH in cashback per month. 

In which bank can the card be opened?

The program is already supported by 11 banks, including Oschadbank, PrivatBank, A-bank, PUMB, "Sense Bank", Ukrsibbank, Monobank, and others. Each financial institution competes for customers by offering favorable terms for opening this card.

For example, through the National Cashback program, PrivatBank offers an additional 10% cashback on Ukrainian goods purchased with Mastercard cards. "Sense Bank" adds an extra 2% bonus to the purchase amount through the state program.

How can cashback be spent?

Cash from the special cashback account can only be withdrawn to the card linked in the "Diia" app. Users can spend the accumulated funds on certain services, such as medical services, utility payments, transportation, mobile services, restaurant or cinema visits, as well as charitable donations and the purchase of war bonds.

How can entrepreneurs join the state program?

Ukrainian manufacturers and sellers have the opportunity to increase their profits by becoming participants in the "National Cashback" program.

What should manufacturers do?

1. Log into your personal account in Diia or register using an electronic signature. You can only participate in the program if your production is located in Ukraine.

2. Submit an application to be included in the List of Ukrainian manufacturers. Confirm your application using a qualified electronic signature (QES).

3. Add your products to the List of Ukrainian goods. Enter the EAN code — a unique barcode for identifying each product.

4. After approval of the application for participation in the program, submit another application to include your products in the list of goods participating in the program. Confirm this action also with the QES.

5. Familiarize yourself with the exclusions for products. Excise goods such as alcohol, tobacco, and fuel, except for grape, fruit-berry wines, and honey drinks, are not included in the program.

What should sellers do?

1. To participate in the program, sellers must be on the general taxation system.

2. Submit an application through "Diia" to join the List of Sellers and confirm it using QES.

3. Select products and label them for customers. You can use ready-made marketing materials and stickers to label the products.

4. Ensure that you cooperate with banks or payment systems that are already participants in the cashback program.

5. Purchase more Ukrainian goods from suppliers and tell them about the national cashback program. This way, you will support Ukrainian manufacturers and the economy.

6. Inform customers about the possibility of receiving cashback. Develop attractive visuals and advertise products marked with "National Cashback", highlighting the advantages of the program at your point of sale.

7. Set up an ECR. Ensure that your electronic cash register (ECR) supports the cashback program.

Why is National Cashback beneficial for entrepreneurs?

Participating in the national cashback program offers several important benefits for businesses:

• Increased sales volume. Consumers are more inclined to make purchases where they can receive partial cashback. This stimulates a higher turnover of goods and services.

• Customer loyalty. The cashback program helps attract new customers and increase the loyalty of existing ones since customers gain tangible benefits from their purchases.

• Modern image. Companies that participate in the program are a step ahead of their competitors as they are more innovative and customer-oriented. Moreover, they support national brands. 

• Reduced operating costs. Cashless payments help reduce costs related to cash handling, particularly in collection and money storage. In addition, it minimizes risks associated with cash transactions.

• Transparency and accounting. Cashless payments simplify bookkeeping and ensure better control over business income and expenses. This also facilitates the passing of tax inspections.

National Cashback can become an effective tool for promoting Ukrainian goods. For entrepreneurs who strive to be at the forefront of modern technologies and economic initiatives, participating in the national program is not only an opportunity to increase turnover and competitiveness but also a way to contribute to the development of the country's economy.