Thursday, August 6, 2015

Ukrainian residents to be able to use the international online payment systems (such as PayPal, ApplePay, GoogleWallet and others) to receive cross-border payments

The National Bank of Ukraine points to and welcomes the strong interest shown by businesses and the Internet users’ community of Ukraine in the use of the state-of-the-art online payment systems (such as PayPal, ApplePay, GoogleWallet and others). One of the National Bank of Ukraine's tasks is to expand the opportunities for the Ukrainian residents to use reliable international online payment systems that are recognized and used worldwide.

The domestic legislation enables the Ukrainian residents to use the international online payment systems to send and receive cross-border payments credited to residents’ accounts with the Ukrainian banks.    With the aim of streamlining the execution of such payments and encourage the coming of internationally recognized online payment systems to the Ukrainian payment services market (such as PayPal, ApplePay,GoogleWallet and other international e-commerce systems), the Board of the National Bank of Ukraine has approved amendments to the Regulation On the procedure of registration of payment systems, payment system participants and payment infrastructure service providers (approved by NBU Board Resolution No. 43 of February 4, 2014  registered in the Ministry of Justice on 05.03.2014 as No. 348/25125) and the Regulation On Electronic Money in Ukraine (approved by NBU Board Resolution No.481 of November 4, 2010, and registered in the Ministry of Justice on 24.12.2010 as No. 1336/18631).


Thus, the National Bank of Ukraine has implemented the first stage of introducing amendments intended to streamline the receipt of cross-border payments by residents and has created conditions necessary for the use of the capabilities and basic services of international e-commerce systems  while executing cross-border transactions for residents, including:
1) funds transfers outside  Ukraine using payment cards  for  settlements  or crediting funds to  e-wallets to be used  for further settlements;
2) the receipt of funds by residents (both individuals and  sole proprietors) for sold goods/services from non-residents;
3) the subsequent use of most available services associated with e-money, etc.

To this end, the National Bank of Ukraine has simplified the   registration procedure of international online payment systems established in the countries with high standards in place in the financial area and the countries that adhere to the international standards in exercising oversight of payment and settlement systems. The international online payment systems (such as PayPal, ApplePay, GoogleWallet and others) are entitled to operate in Ukraine once information about them is entered into the Register of Payment Systems, Settlement Systems, Their Participants and Operators of Payment Infrastructure Services.

Going forward, the National Bank of Ukraine is set to amend the applicable   legislation, including the Law of Ukraine On Payment Systems and Funds Transfer in Ukraine (by the end of 2015), which would make it possible to expand  the possibilities of using e-money by the Ukrainian residents. In the first quarter of 2016, it is planned to implement the third stage of the liberalization of the foreign exchange regulation to enable the Ukrainian residents to use the full range of services provided by international online payment systems.



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