Instant Payments

The National Bank of Ukraine (NBU) is in the process of implementing and promoting instant credit transfers (that are used for executing instant payments).

An instant credit transfer is a payment transaction from the payer’s account to the payee’s account delivered immediately as of the acceptance of the payment order at any time during a 24-hour period of a calendar day. 

This transfer is transacted directly between the users’ accounts. This is not the same as a fund transfer using bank details or payment cards (so called "card to card transfers", "P2P", and "C2C"), rather a completely different payment transaction.

Credit transfers are usually called transfers to an account/IBAN/bank details in payment apps of payment service providers.

In November 2024, amendments to the Law of Ukraine On Payment Services entered into effect that define the framework for instant credit transfers. These amendments implement Regulation (EU) 2024/886 (amending Regulation (EU) 260/2012 and Regulation (EU) 2021/1230 and Directive 98/26/EU and Directive (EU) 2015/2366 regarding setting special requirements for instant credit transfers in euro in addition to general requirements applied to all credit transfers).

Also, as of December 2024, the new version of the System of Electronic Payments of the National Bank of Ukraine SЕP 4.1 that provides instant credit transfers (hereinafter referred to as "SEP instant transfers") was launched in Ukraine. 

Already in August, in the Law of Ukraine On Payment Services, payment service providers that render credit transfer services must:
1) provide the user with a service of instant credit transfer (in line with requirements and restrictions set by the NBU)
2) provide the payer the option to initiate an instant credit transfer with the same means of remote communication that are used for initiating a credit transfer.  

Specifics of SEP Instant Transfers:

• alternative method to pay for goods and services by instant crediting funds to a payee’s account
• instant notifications to payee and payer on finalizing the payment transaction (in a manner defined in the agreement with the payment service provider)
• the payee can use funds right after finalizing the payment transaction that is execute in 10 seconds
• no need for a payment terminal for acceptance of payments for goods and services, and therefore no costs associated with its use
• decreased operating cost for payment service providers (taking into account SЕP pricing policy)
• initiation of payment transactions through payment apps of payment service providers and transfer of payment details between users using QR codes, Share function using QR code icon or Deeplink.

Implementing SEP instant transfers will:

• boost digitalization of financial services and development of cashless payments
• strengthen competition between payment systems and services that will boost quality and reduce transactional costs
• favor future integration with international instant transfer systems, including the EU.

Also, instant credit transfers play an important role in the development of open banking in Ukraine.