This system is being developed with the participation of 11 Ukrainian banks, the Rozetka marketplace, the City24 network of terminals, and the Kyiv Digital mobile application.
Key Features and Advantages:
Blockchain-Based Transfers:
- The system leverages blockchain technology to facilitate instant transfers between customer accounts without needing international payment systems like Visa and Mastercard.
Current Testing Phase:
- The project is in the closed testing stage and may become available to the public by the end of the year.
Potential Market Impact:
- According to project coordinator Kyrylo Cherednichenko, "Transparent Network" could replace a significant portion of traditional P2P transfers and payments in e-commerce. It could also be used in offline stores, where payments would be processed via cash register equipment or mobile applications, eliminating the need for POS terminals.
Cost Efficiency:
- The system offers several financial benefits, including the elimination of interchange fees, lower transaction fees for merchants, and free transfers between bank cards. This could lead to faster transfers at reduced costs, improving the overall customer experience.
Challenges and Considerations:
Licensing and Regulatory Approval:
- One of the main hurdles for "Transparent Network" is the absence of a license from the National Bank of Ukraine. This regulatory approval is crucial for the system's official launch and widespread adoption.
Transfer Speed:
- There are ongoing concerns about the speed of transfers within the system, which could impact user experience.
Participant Scope:
- While the system is currently being tested by smaller banks, consultations with larger financial institutions are ongoing, indicating a potential expansion of the network.
Despite these challenges, the introduction of "Transparent Network" is seen as a positive development, offering a promising alternative to existing payment systems and potentially reshaping Ukraine's financial landscape.
