Instant Payments in Ukraine

Instant Payments in Ukraine

Since December 1, 2024, Ukraine has entered a new phase in the development of its payment infrastructure with the launch of SEP 4.1, the updated National Bank's System of Electronic Payments that supports instant credit transfers. This revolutionary change transforms how businesses and individuals conduct financial transactions, offering unprecedented speed and convenience in cashless payments.

What Are 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. Unlike traditional transfers that might take hours or even days, instant payments through SEP are executed within 10 seconds, regardless of when you initiate them—weekday or weekend, business hours or late at night.

This should not be confused with card-to-card transfers (P2P or C2C payments). Instant payments are direct IBAN-to-IBAN transfers executed through the banking infrastructure, providing greater security and traceability. In most banking apps, these are labeled as "transfers to an account/IBAN/by bank details."

Legislative Framework and EU Integration

The implementation of instant payments in Ukraine aligns with European standards. In November 2024, amendments to the Law of Ukraine "On Payment Services" entered into effect, implementing Regulation (EU) 2024/886 regarding special requirements for instant credit transfers.

Starting from August 2025, all payment service providers that offer credit transfer services are obligated to:

  1. Provide users with instant credit transfer services (in compliance with NBU requirements and restrictions)
  2. Enable payers to initiate instant credit transfers using the same means of remote communication available for regular credit transfers

This regulatory alignment positions Ukraine's payment system for future integration with European instant payment networks, particularly those within the European Union.

Technical Foundation: SEP 4.1

The new version of Ukraine's System of Electronic Payments (SEP 4.1) was built on international standards:

  • ISO 20022 messaging standard for financial data exchange
  • Single Euro Payments Area (SEPA) scheme principles
  • 24/7 operation with no downtime for weekends or holidays
  • Real-time processing with transactions completed in approximately 10 seconds

This technical foundation ensures compatibility with European payment infrastructures and facilitates future cross-border instant payment capabilities.

Key Features and Benefits

For Individual Users

  • Instant crediting: Funds appear in the recipient's account within seconds, not hours
  • 24/7 availability: Make transfers any day of the year, at any time
  • Error elimination: Pre-filled payment details via QR codes prevent manual input mistakes
  • Immediate notifications: Both payer and recipient receive instant transaction confirmations
  • Immediate access to funds: Recipients can use transferred funds immediately upon receipt

For Businesses

  • No POS terminal required: Accept payments without expensive hardware or monthly subscription fees
  • Lower transaction costs: IBAN transfers typically cost less than card payment processing
  • Instant payment confirmation: Know immediately when a customer has paid
  • Reduced operational costs: Benefit from SEP's favorable pricing policy
  • QR code integration: Generate payment QR codes that customers can scan with their banking apps
  • Cash flow improvement: Instant access to received funds improves working capital management

Currently, over 75% of Ukrainians with current accounts can scan NBU-compliant QR codes using their mobile banking apps, making this payment method widely accessible.

QR Codes and Payment Initiation

One of the most convenient features of instant payments is the ability to share payment details through QR codes standardized by the National Bank of Ukraine. These QR codes contain:

  • Recipient's IBAN
  • Recipient's name
  • Tax identification number
  • Payment purpose
  • Currency
  • Amount

Businesses and individuals can generate these QR codes through:

Customers simply scan the QR code with their banking app, verify the pre-filled payment details, and confirm the transfer. The entire process takes seconds, and the merchant receives confirmation immediately.

Growth Projections and Market Adoption

Industry experts predict rapid adoption of instant payments in Ukraine:

  • 2024 baseline: Instant payments represented approximately 19% of all credit transfers globally
  • End of 2025 projection: Expected to reach 35-45% of credit transfers in Ukraine
  • 2026 forecast: Could exceed 50% of all credit transfers

"Demand for instant payments is growing daily. Clients quickly adapt to the service since operations are available 24/7 and take only a few seconds," note industry analysts.

Benefits for the Ukrainian Economy

The widespread adoption of instant payments delivers systemic benefits:

Digitalization Acceleration

Instant payments drive the digital transformation of financial services, reducing reliance on cash transactions and traditional payment methods.

Enhanced Competition

The availability of instant payments intensifies competition among payment systems and service providers, leading to improved service quality and reduced transaction costs for end users.

EU Integration Pathway

By implementing instant payments based on ISO 20022 and SEPA principles, Ukraine creates a technical foundation for future integration with European instant payment networks, facilitating cross-border transactions.

Open Banking Development

Instant payments play a crucial role in developing Ukraine's open banking ecosystem, enabling innovative financial services and improving customer experience.

Practical Applications

Retail and Point-of-Sale

Physical stores can display QR codes at checkout, allowing customers to pay instantly without card terminals. The merchant receives immediate confirmation and can proceed with the transaction.

E-commerce and Online Services

Online businesses can integrate instant payment QR codes into their checkout process, offering customers a fast alternative to card payments without the associated processing fees.

B2B Transactions

Business-to-business payments benefit from instant execution, improving cash flow management and eliminating the uncertainty of traditional bank transfers.

Freelancers and Individual Entrepreneurs

Self-employed professionals can accept instant payments from clients without maintaining expensive merchant accounts or payment processing infrastructure.

Charitable Organizations

Non-profits can generate instant payment QR codes for donations, making it easier for supporters to contribute while ensuring immediate access to funds.

Services Supporting Instant Payments

Several Ukrainian fintech services facilitate instant payments through QR code generation:

pmnt.app offers a comprehensive solution for generating NBU-compliant QR invoices that work seamlessly with the instant payment infrastructure. The service provides:

  • Web interface for quick QR code generation
  • Telegram bot (@pmnt_app_bot) for on-the-go invoice creation
  • RESTful API for business integration
  • MCP server for AI assistant integration (Claude Desktop)
  • No subscription fees or hardware requirements

This makes pmnt.app particularly suitable for small businesses, freelancers, and organizations seeking a simple way to accept instant payments without complex infrastructure.

Looking Forward

The implementation of instant payments marks a pivotal moment in Ukraine's financial infrastructure modernization. As adoption grows and more businesses recognize the benefits, instant payments are expected to become the default method for domestic transfers.

The technical alignment with European standards positions Ukraine advantageously for future payment market integration, potentially enabling instant cross-border payments with EU countries. This technological foundation, combined with the practical benefits for businesses and consumers, suggests that instant payments will reshape Ukraine's payment landscape in the coming years.

For businesses considering payment acceptance options, instant payments via QR codes offer a compelling combination of low cost, high speed, and wide accessibility—all without the complexity and expense of traditional POS terminals.

Learn more about accepting instant payments for your business at pmnt.app