European Experience in State Regulation of the Electronic Payments Market and the Possibilities for Its Adaptation in Ukraine

Abstract

An integral and strategically important component of the modern financial sector is the electronic payments market, which drives the development of digital financial services, increases the efficiency of settlements, and supports the integration of the national economy into the global financial space. In the context of active digitalization and the growing role of fintech companies, state regulation of the electronic payments market becomes particularly significant, as it ensures a balance between innovation, security, and consumer protection. In the European Union, this area is governed by a set of regulatory acts, including the PSD2 Directive, which establishes rules for payment institutions and introduces the principle of open banking, as well as the E-Money Directive, which sets requirements for electronic money issuers. The relevance of the research is determined by the need to adapt these European practices to the Ukrainian context in order to ensure transparency, stability, and competitiveness of the domestic financial market.

The purpose of this study is to analyze the European experience of regulating electronic payments and to determine the possibilities of its adaptation in Ukraine. The paper examines the theoretical foundations of payment market regulation, reviews the main provisions of European directives, and analyzes the implementation of open banking, cybersecurity, and supervisory mechanisms for payment service providers. A comparative analysis of the regulatory framework of Ukraine and the EU is conducted, identifying similarities and differences in regulatory approaches and outlining potential barriers to adopting European standards in national legislation, such as limited digital infrastructure, institutional constraints, and low financial literacy levels.

Based on the findings, directions for improving Ukrainian legislation in the field of electronic payments are proposed, including harmonization with PSD2 and the E-Money Directive, strengthening the role of the National Bank of Ukraine as the central regulator, expanding mechanisms of inter-institutional coordination, and introducing modern cybersecurity standards. It is concluded that adapting European practices will enhance trust in the Ukrainian financial system, stimulate the development of the fintech sector, and support the country’s integration into the European financial space.

Future research perspectives include analyzing the effectiveness of open banking implementation, assessing the impact of digital innovations such as artificial intelligence, blockchain solutions, and big data on payment infrastructure development, and exploring the prospects of Ukraine’s integration into the common European payment services market.