National Bank of Ukraine to Improve Payments Services Market
The initiative proposed by the NBU will help bring the Ukrainian banking sector closer in line with EU standards
Photo from Ukrinform-UATV
The National Bank of Ukraine announced a series of changes in order to integrate the payment market of Ukraine into new European standards, the press service of the National Bank of Ukraine reported.
According to the declared future changes, the National Bank intends to implement the Payments Services Directive, known as PSD2, adopted by the European Parliament introducing the principle of Open Banking for payment institutions.
The European Parliament adopted an updated PSD2 in October 2015 to promote innovative online and mobile payment instruments, make payment services safer, and access to banking data transparent.
Innovations seek to expand the functionality of the payment system, to make it more transparent and safer for users. The European directive also focuses on online payments, user software, as well as the introduction of new services, such as the so-called “payment initiation services providers” and “account information services providers.”
Open Banking also implies the refusal of charging fees for payment by card or online payment. Another feature is the opportunity for clients to grant access to information about transactions for third parties. This could allow entrance to the financial services market for other companies, such as payment initiation services providers and account information services providers. At the same time, banks will be obliged to increase security, in particular, according to the press release “to strengthen the client authentication procedure.”
Also, the list of financial services will also be expanded. In addition to the traditional funds transfer service, five new services will be available to the online account holder:
- Entering funds to a payment account;
- Withdrawal of funds;
- Transfer of funds;
- Transfer of funds at the expense of a loan;
The NBU is also planning to abolish a series of legislative restrictions related to the regulation of payment system activities in order to harmonize the payment legislation of Ukraine with the European Union and to simplify access to the financial market for non-banking institutions.
“Such steps will promote the modernization of state regulation in the payment industry and will give a positive impetus to the development of innovative business solutions in the payment services market,” Deputy President of the NBU, Serhiy Kholod, said.