Why the new international payment systems from Ukraine are so important?

Alyona Shevtsova
4 min readMay 17, 2019


The last couple of years, the media space of Ukraine resembles a red-hot pan. Any problem swells up to the level of a universal catastrophe, described in all media, flowing into endless Facebook disputes. Journalists, of course, show the wonders of knowledge in the field of synonyms, so that their content would seem a little relevant for the search engone. But this is not the problem. Behind all this negative, enhanced elections, many forget to pay attention to achievements.

And we had a lot of victories — especially in business. The financial market in general and the transactional business in particular are developing good that some European countries should envy. American Forbes writes about Ukrainian fintech projects, and the alleged «third world country» for some reason beats records for the growth of a cashless economy.

Thanks to everything described, the more and more international counterparties are starting to look in «Ukrainian direction». Ok, emerging market, of course, excellent. How to work with it? What are the terms of settlement, integration, etc.? We are familiar with these questions more than anyone, and therefore the agreement of the rules of the international payment system LEO is a big-time victory for us. And while many strenuously repeat «PayPal hasn’t come — there is no life» — you should pay attention to how to work with international markets on your own.

What is a payment system and why it is necessary to understand the definition correctly?

Let’s start with the basics. The payment system is not a site. This is not an application or electronic wallet. At the household level, users call the payment system everything that is somehow related to their money. Why is that? Because the word «system» is synonymous with stability, clarity, and guarantees.

In official terms, a payment system is a complex of organizations and institutions, rules, procedures, and technical infrastructure necessary for conducting cash settlements between subjects of settlement relations arising in the production and sale of goods and services. Difficult to understand, that’s true. In simple terms, it is a combination of banks, non-bank financial institutions and technical means (sites, terminals, applications) with which money transfers are made. The process is guided by clearly formalized payment system rules.

The difference between domestic and international payment systems is only in the possibilities of operating in the territory of two or more countries or only of their own country.

Why in Ukraine there are few international payment systems not from banks?

A member of the payment system may be a bank that has a banking license, or a non-bank financial institution that has a license to transfer funds without opening an account, which is issued by the National Bank. The transfer of funds in the payment system provides the seletcted bank. The conditions for obtaining the IPS status and the more limited possibilities of financial companies as compared to banks for many years created a situation, where international payment systems were mainly banking.

But not after several years of reform were held but the state regulator. Many banks perished from the market, opening the way to active, enterprising and successful financial companies. Due to this, now there are already 4 international payment systems in Ukraine, the payment organizations of which are the non-bank financial organistions.

What does it all give?

All in all there are huge opportunities for international money transfers. And it’s not about competition for money transfers to Ukraine from Ukrainians, who are working abroad, to their families. For any Ukrainian company in the field of payment services, working in other countries, and directly with foreign contractors, is a huge window of opportunities. They will be used by all participants of the payment system, developing and improving their offers, scaling business into new markets. This is the real integration with European market. Without big words, but with a bunch of work that brings its decent results.


That is why you should’t listen to those who accelerate “zrada”, saying that «if there is no PayPal — so there is nothing.» Their subsidiary company Xoom has already entered Ukraine. Pioneer has been working here for a long time. All of this is part of a large financial wealth sheet. It doesn’t have one element that immediately makes business simple. Moreover, business as a process will never be an easy walk. But if we want our market to be reckoned abroad and treat with as an equal — you shouldn’t use someone else’s achievements, but learn how to create your own.



Alyona Shevtsova

CEO of the international payment system LEO, the shareholder of IBOX Bank