Law of Ukraine "On Payment Services" came into force

On the 1st of August 2022 the Law of Ukraine No. 1591-IX "On Payment Services" came into force.

The Law aims to adapt Ukrainian legislation to the legislation of the European Union for the future integration of the payment system of Ukraine with the EU payment system.

The Law foresees 9 categories of payment service providers, in particular – banks, payment institutions, postal operators, NBU, state authorities, etc. – and 9 payment services (7 financial and 2 non-financial). New market participants appear - electronic money institutions, branches of foreign payment institutions, etc. Subject to certain authorization, non-bank payment service providers can open payment accounts, issue payment cards and electronic money.

The Law creates conditions for the introduction of the concept of open banking, which should unite payment service providers and technological platforms into one system, which is planned to start working in 2023.

Also, this Law strengthens the protection of the rights of consumers of payment services, in particular through enhanced authentication, ensures transparency of data provision, promotes competition in the market of payment service providers, increases their capabilities and promotes the emergence of new ones.