The National Bank of Ukraine has developed a draft vision of an instant payment system in Ukraine, which is being offered for public discussion.
This system is designed for Ukrainian users to handle account-to-account transfers and payments quickly and at affordable rates via user-friendly, cutting-edge and innovative access channels and with the use of payment initiation methods.
“We study innovative experience and best global practices in introducing instant payment systems to come up with our own approach that would satisfy and cater for the Ukrainian market,” said Andrii Poddieriohin, Director of Payment Systems and Innovations Department. “Creating an instant payment system in Ukraine will contribute to the development of the payment infrastructure, enhance competition on the payment market, promote financial inclusion and cashless payments. Furthermore, the system will meet the expectations of financial market players and users about lower rates for cashless payments.”
The regulator has been involved in drafting the vision the beginning of 2020. This model considers results of the NBU’s cooperation with international partners and experts of the Ukrainian payment market.
The system is expected to have the following features:
- operating 24/7/365
- account-to-account transfers
- immediate availability of cash to the recipient (immediate crediting of the recipient’s account)
- initiating transactions in mobile apps
- using a QR code for convenient access to payment details
- executing a request to pay.
Instant payments will signify the development of an open financial market infrastructure as prescribed by the Innovation Development strategic direction of the Strategy of Ukrainian Financial Sector Development until 2025.
For the successful establishment and implementation of such system, the NBU invites experts, financial market players, and specialized associations to provide comments and proposals on the document and join the discussion.
For more details about the draft vision and other useful information please follow the link.
The discussion will continue through 21 November 2021. Please send your comments and proposals to: email@example.com.
The NBU will decide on the best model for the instant payment system for the Ukrainian payment environment.
An Instant Payment System is a system for electronic retail payments processed in real-time mode, 24/7, and funds are instantly available to the recipient.
Instant payments are a modern innovative trend involving banks and FinTech companies globally. Around 80 countries have already developed their own instant payment systems, including some countries that have two such systems. Another 10 countries announced the launch of similar systems.