A new bill on payment services

A new bill on payment services has been registered recently in the Ukrainian parliament. The given bill is supposed to replace the current law on payment services that had been adopted back in 2001. The bill has been drafted considering the best practices of the European regulatory acts, in particular, Payment services Directive (PSD2) 2015/2366 and E-money Directive (EMD) 2009/110/EC.

A new bill on payment services №4364 introduces seven financial payment services:

  • crediting of funds to the customer’s account, as well as all services related to opening, servicing and closing accounts (except e-wallets)
  • funds withdrawal from the customer’s account, as well as all services related to opening, servicing and closing accounts (except e-wallets)
  • execution of payment transactions with the customer’s own funds from the account to the customer’s account (except for the transactions with e-money) including credit transfer, debit transfer, etc.
  • execution of payment transactions from the account to the customer’s account (except for the transactions with e-money) provided the funds for the transaction are being provided to a customer by a payment service provider on credit terms
  • issuance of payment instruments or acquiring payment instruments
  • transferring funds without opening a bank account
  • issuance and execution of payment transactions with the e-money including opening and maintenance of e-wallets

Non-financial payment services:

  • services on the initiation of the payment transaction
  • services on providing information on the accounts

It shall be noted that the payment services will be provided exclusively by:

  • banks, payment institutions (including small payment institutions)
  • branches of foreign payment institutions
  • e-money institutions entitled to provide payment services
  • operators of postal communications
  • providers of non-financial payment services
  • National Bank of Ukraine
  • state and municipal bodies

Besides, the bill shall regulate the execution of transactions with the e-money and its issuance. But to start issuing e-money or executing operations with the e-money the institution, except for a bank, shall obtain a license from the National Bank of Ukraine in the first place. After that, the institution will be entered into the relevant Register.

The bill also provides certain requirements for disclosing information, saving documents, agreements on providing payment services, data protection etc.

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