1 December 2024 SЕP New Version Delivering Instant Transfers Launched in Ukraine

As of 1 December 2024, the new version of the System of Electronic Payments of the National Bank of Ukraine SЕP 4.1 that provides instant transfers (hereinafter referred to as “SEP instant transfers”) was launched in Ukraine. This payment transaction is provided for by the Law of Ukraine On Payment Services that came into effect on 8 November 2024.

The benefits of the new version of SЕP 4.1 are the following:

• innovation meaning introducing SЕP instant transfers (this is the next step in developing Ukraine's payment infrastructure)
• transparency meaning clear conditions and opportunities for all SЕP participants and their clients
• availability meaning SEP payments are available round the clock.

How will upgraded SEP operate?

All SEP participants transitioned to the new version. At present, upgraded SEP continues to perform effectively 24/7.

The transition to the new version of the software was successful, and now the instant transfer option of the SЕP is available to all those connected to the system: banks, non-bank payment service providers, and the State Treasury Service of Ukraine.

As of today, the following have already connected to SЕP instant transfer:

• National Bank of Ukraine
• Oschadbank JSC
• CREDIT AGRICOLE BANK JSC
• SKY BANK JSC
• CLEARING HOUSE JSB
• UKRSIBBANK JSС
• Ukreximbank JSC
• EUROPEAN INDUSTRIAL BANK JSC
• SENSE BANK JSC
• ALTBANK JSC
• Idea Bank JSC.

Gradually, all participants are expected to connect to SЕP gradually (depending on their internal schedules for implementing SЕP instant transfers) in order to be able to offer their customers high-quality and fast payment services.

The implementation of SEP instant transfer functionality, which is a key feature of the new version SЕP-4.1, creates conditions for further improvement of the country's payment infrastructure.

“For over a year, we have been thoroughly preparing for SЕP upgrade, working closely with system participants on all technical and methodological aspects to ensure a seamless and successful transition to the new version of the software. We thank all the teams from banks, non-bank payment service providers, and the State Treasury Service of Ukraine for coordinated and effective efforts, and welcome them to continue working together on further improving the system of electronic payments and payment infrastructure of Ukraine,” said Volodymyr Nagornyuk, NBU IT Department Director.

What is a SEP instant transfer?

SЕP instant transfer is a SЕP payment transaction of immediate crediting of funds to the payee's account. In other words, payment service providers will execute instant transfer of funds from the payer's account to the payee's account and are required to immediately inform them of the results of the payment transaction.

Such a payment transaction can be initiated by both individuals and legal persons. The maximum time for processing a SЕP instant transfer is measured in seconds (no more than 10 seconds), and the maximum amount for a single payment transaction is set at UAH 100,000, which is a best solution for most payments to meet the everyday needs of households.   

Advantages of SЕP instant transfers are as follows:

for households:

• fast crediting of funds to the payee in real time, which is particularly important when making payments for goods and services
• convenient initiation of payments (through payment apps of payment service providers) and transfer of payment details between users (using QR codes or Deeplink)

for business:

• decreased operating cost (taking into account SЕP pricing policy) and efficient liquidity management
• improved service for customers due to 24/7 availability of SЕP payments

for the Ukrainian economy in general:

• boosting digitalization of financial services and development of cashless payments
• strengthening competition between payment systems and services that will boost transparency and reduce transactional costs
• potential for future integration with international instant transfer systems, including the EU.