Aligning Ukraine's Payment System with European Standards
Ukraine is steadily aligning its payment infrastructure with European norms by reforming payment legislation, upgrading its systems, adopting common standards, and implementing open banking initiatives. A significant milestone in this journey was the 2021 adoption of the Payment Services Act, which incorporated key elements of the EU’s PSD2 directive.
Andriy Podderyogin, Director of the Payment Systems and Innovative Development Department at the National Bank of Ukraine (NBU), emphasized that
“Our preparations for EU accession regarding payment regulations began with the 2021 Payment Services Act, which incorporated the main provisions of PSD2.”
As part of this reform, Ukraine introduced the IBAN system for all user accounts across banks and non-bank payment providers. Despite the challenges posed by the full-scale invasion, the country completed the rollout of the ISO 20022 standard, marking a crucial step in modernizing its payment infrastructure. Starting December 2024, the Electronic Payment System (EPS) will enable instant credit transfers, enhancing the speed and convenience of financial transactions.
From August 1, 2026, the largest banks by account volume will open APIs to non-financial payment service providers, paving the way for the integration of innovative technologies into payment processes. Access to 97% of personal current and payment accounts, and 71% of corporate accounts, is already ensured. Several banks have been authorized as Payment Initiation Service Providers (PISP) and Account Information Service Providers (AISP), and initial open banking transactions have been conducted. Approximately 90% of banks support unified open banking specifications based on the Berlin Group standards.
Podderyogin further noted:
“We continue to develop the EPS towards integration with the European payment infrastructure, building the foundation for Ukraine’s future SEPA membership.”This integration aims to reduce the cost of cross-border euro payments for Ukrainian users. “The practical benefit for Ukrainians will be lower fees on euro transactions, as demonstrated by countries like Montenegro and Moldova, which recently joined SEPA,” he added.
Plans are also underway to gradually reduce interchange fees in line with Ukraine’s euro-integration commitments, signaling another step towards harmonizing payment services with European norms. Collectively, these initiatives highlight Ukraine’s commitment to modernizing its payment system to meet global standards.
Significance of Payment Integration for Economic Growth
Bringing Ukraine’s payment system in line with European standards is a vital move for the country’s economic development, especially within the broader context of its European integration ambitions. Lowering cross-border payment costs and introducing advanced financial technologies will improve access to financial services for individuals and businesses alike. These reforms can also attract foreign investment, playing a key role in Ukraine’s ongoing recovery and economic expansion.
As Ukraine progresses towards European payment standards, it is crucial to note that the country plans to submit its application for SEPA membership by the end of 2027. This strategic move will further enhance its integration into the European financial system, allowing for smoother cross-border transactions. To learn more about Ukraine's timeline and objectives regarding SEPA accession, read our detailed coverage on the upcoming SEPA application.