This update introduces the highly anticipated functionality of instant credit transfers, marking a significant advancement in Ukraine's payment infrastructure.
Overview of SEP-4.1
SEP-4.1 represents the latest evolution of Ukraine's electronic payments system, designed to enhance the speed, transparency, and accessibility of financial transactions across the nation. This launch is in accordance with amendments to the Law “On Payment Services”, which came into effect on November 8, 2024.
Key Advantages of SEP-4.1
Innovation:
- Instant Transfers: SEP-4.1 introduces instant transfer capabilities, allowing funds to be credited to recipients' accounts within seconds, significantly reducing transaction times.
- Next-Generation Infrastructure: This update is a crucial step in the ongoing development of Ukraine's payment infrastructure, positioning the country at the forefront of modern financial technologies.
Transparency:
- Clear Conditions: SEP-4.1 establishes clear terms and conditions for all participants and their clients, ensuring a transparent operational framework.
- Enhanced Reporting: Participants are required to provide immediate updates on the status of payment transactions, fostering greater accountability.
Accessibility:
- 24/7 Availability: The updated SEP operates around the clock, seven days a week, ensuring that payments can be made at any time without restrictions.
- User-Friendly: Both individuals and legal entities can initiate instant transfers easily through participating banks.
Participating Banks
As of the launch date, 11 banks have integrated the SEP-4.1 instant transfer functionality. These institutions include:
- National Bank of Ukraine
- JSC “Oschadbank”
- JSC “CREDIT AGRICOLE BANK”
- JSC “SKY BANK”
- JSC “CLEARING HOUSE”
- JSC “UKRSIBBANK”
- JSC “Ukreximbank”
- JSC “EUROPEAN INDUSTRIAL BANK”
- JSC “SENSE BANK”
- JSC “ALTBANK”
- JSC “Idea Bank”
Future Integration
All SEP participants are expected to gradually connect to the SEP-4.1 system based on their internal schedules for implementing instant transfer capabilities. This phased approach ensures a smooth transition and allows banks to offer high-quality, fast payment services to their clients without disruptions.
How SEP-4.1 Works
Instant SEP Transfer
An instant SEP transfer is a payment transaction that enables funds to be instantly credited to the recipient's account through SEP-4.1. Key features include:
- Eligibility: Both individuals and legal entities can initiate instant transfers.
- Speed: The maximum execution time for an instant SEP transfer is 10 seconds, ensuring near-instantaneous fund availability.
- Transaction Limit: Each instant transfer can be up to UAH 100,000, catering to the daily financial needs of most citizens and businesses.
Operational Efficiency
SEP-4.1 leverages advanced digital infrastructure to ensure seamless and secure transactions. The system mandates that payment service providers:
- Immediate Notification: Providers must inform both the payer and the recipient about the outcome of the payment transaction without delay.
- Robust Security: Enhanced security protocols are in place to protect against fraud and ensure the integrity of transactions.
Government and Industry Support
Taras Kachka, Deputy Minister of Economy and Trade Representative of Ukraine, highlighted the strategic importance of SEP-4.1:
“The introduction of SEP-4.1 is a transformative step towards modernizing Ukraine’s financial systems. By enabling instant transfers, we are not only improving transaction efficiency but also enhancing the overall financial ecosystem’s resilience and reliability.”
The NBU's initiative aligns with Ukraine's broader goals of digitalization and economic modernization, fostering a more dynamic and competitive financial sector.
Conclusion
The launch of SEP-4.1 marks a significant milestone in Ukraine's financial landscape, introducing instant payment capabilities that enhance the speed, transparency, and accessibility of electronic transactions. With 11 banks already onboard and more set to integrate in the coming months, Ukraine is poised to benefit from a more efficient and robust payment infrastructure.
As SEP-4.1 continues to roll out, both individuals and businesses can look forward to faster, more reliable, and secure payment options, further solidifying Ukraine's position as a leader in digital financial innovation.
