In 2019, both residents and nonresidents used money transfer systems to transact the following remittances:
- USD 2,271 million, in equivalent, to Ukraine (21.94% of total remittances)
- USD 398 million, in equivalent, abroad (3.85% of total remittances)
- UAH 197.93 billion or USD 7,679 million, in equivalent, within Ukraine (74.21% of total remittances).
These data do not include information on fund transfers transacted by banks, card payment systems and post offices, and informal channels.
Fund Transfers within Ukraine Increase Each Year
In 2019 domestic remittances using money transfer systems increased by 38.6% yoy. This trend has been lasting for a couple of years. Overall, fund transfers within Ukraine grow annually: in 2017 by 21.4%, in 2018 by 24.3%.
In 2019 the average sum of remittance within Ukraine was UAH 314 (in 2018 - UAH 214), while most of the funds were traditionally transacted to Kyiv.
The money transfer systems created by nonbank institutions (nonbank institutions transact 91% of all remittances in this segment) are leaders at the market of domestic remittances. In 2019 NovaPay*(Post Finance), Poshtovyi perekaz (Ukrposhta), Finansovyi svit (Ukrainska platizhna systema) were the leading money transfer systems in domestic remittances.
A fifth of all private remittances to Ukraine are sent via money transfer systems
According to preliminary NBU estimates, in 2019 private remittances (sent through official and informal channels) made:
- almost USD 12 billion, in equivalent, to Ukraine from abroad
- almost USD 0.6 billion, in equivalent, from Ukraine abroad.
Private remittances transacted via money transfer systems were as follows:
- to Ukraine - almost USD 2.3 billion in equivalent, nearly fifth of all private remittances to Ukraine
- from Ukraine - almost USD 0.4 billion in equivalent, nearly two third of all private remittances abroad
Remittances sent via money transfer systems split by countries are the following:
to Ukraine:
- from the USA ––18%
- from Israel – 14%
- from Italy – 9%
- from Russia – 7%
- from Poland – 7%
- from other countries – 45%
from Ukraine:
- to Russia – 31%
- to Georgia – 11%
- to Azerbaijan – 6%
- to China – 5%
- to Uzbekistan – 5%
- from other 195 countries – 42%
The USA residents account for the majority of cross-border transfers using money transfer systems: 93% to Ukraine and 96% from Ukraine.
Ukraine remains to be a recipient country of cross-border transfers. During 2019, the amount of funds received in Ukraine through money transfer systems was practically six times more than the amount sent abroad.
Please be reminded that in late March this year the NBU will publish data on private remittances according to the balance of payments of 2019. This data is the income of households received from other households from abroad, and is related to temporary or permanent migration. Remittances may be sent through official channels, such as, banks, international money transfer systems, post offices, and using unofficial ones by handing cash and other valuables from one household to another.
For Reference: in 2019, 37 money transfer systems provided services in Ukraine, 30 whereof were established by residents and 7 by nonresidents (4 US systems and 1 from Georgia, the UK, Canada and Azerbaijan each).