The opportunities of engaging FinTech companies into the system of crossborder money transfers in Ukraine Cover Image

The opportunities of engaging FinTech companies into the system of crossborder money transfers in Ukraine
The opportunities of engaging FinTech companies into the system of crossborder money transfers in Ukraine

Author(s): Yuriy Petrushenko, Liudmyla Kozarezenko, Aldona Glińska-Neweś, Maryna Tokarenko, Maryna But
Subject(s): Economy, Financial Markets, ICT Information and Communications Technologies
Published by: ТОВ “Консалтингово-видавнича компанія “Ділові перспективи”
Keywords: financial sphere; financial services; digital economy; venture; financial technologies; financial innovations; start-up; payment methods;

Summary/Abstract: Despite the increasing role of cross-border payments within the globalization processes and rapid growth of venture sector, an issue of its implementation remains to be a debatable point for many countries. The paper identifies disruptive challenges for financial institutions need to adapt. The research investigates the value and the investment flows structure as most obvious indicators of FinTech and describes types of payments relationships there. The paper considers relationships between enterprises, financial institutions and individuals, which are formed in digital payments. To understand the difference between regular cross-border money transfers and P2P crossborder money transfers with TransferWise, both mechanisms were researched and the benefits underlined. For Ukraine, the improvement of existing cross-border payments system with FinTech is a crucial challenge. That is why it is important to focus on providing knowledge for people, supporting start-ups in the sector and learning the best implementation practices. A great example of cross-border payments of FinTech in Ukraine is TransferWise. The difference between regular cross-border money transfers and peer-to-peer (P2P) money transfers appears in its benefits, such as lower and more expectable transfer fee, mid-market exchange rate, less transaction period. By transforming existing cost structures and mitigating market imperfections, they provide innovative services that meet the users’ needs for speed, trust, low cost, usability, security and transparency. The results show high potential of FinTech for cross-border payment processing.

  • Issue Year: 15/2018
  • Issue No: 4
  • Page Range: 332-344
  • Page Count: 13
  • Language: English