IBAN for P2P Payments: The Complete Guide to Secure Transfers

How IBAN Works and Why It Matters for Ukrainians

IBAN (International Bank Account Number) is a global standard for identifying bank accounts implemented in the international payment system. Ukraine adopted this standard in 2019, which significantly simplified both domestic and cross-border payments. Today, almost all Ukrainian banks use IBAN as the primary method for conducting electronic transactions.

IBAN Structure: What Is Encoded in 29 Characters?

IBAN consists of 29 characters, each serving a specific function:

• UA – two-letter country code (for Ukraine)
• Check digits – two positions that prevent input errors
• Bank identifier – a unique code of the recipient organization
• Account number – the personal account identifier of the client

Example of a Ukrainian IBAN: UA1234567890123456789012345678

How is IBAN Formed for Different User Categories?

The IBAN creation system varies depending on the payer type:

For individuals: a 10-digit RNOКПП (register number of the taxpayer or payer’s account card)

For companies and organizations: an 8-digit EDRPOU (Unified State Register of Enterprises and Organizations of Ukraine)

This two-tier system guarantees accurate identification of each participant in the payment system and minimizes the risk of funds being sent to the wrong account.

Conducting P2P Transactions via IBAN: Step-by-Step Guide

P2P (peer-to-peer) payments are direct transfers between users without intermediaries. Here’s how to properly execute such a transfer:

Step 1: Obtain correct recipient details
Ask the recipient for their IBAN via the bank’s mobile app or directly. Ensure the code is complete and without spaces.

Step 2: Carefully verify each character
Even a minimal error (incorrect digit or letter) will result in funds being credited to the wrong account. Double-check before sending.

Step 3: Specify payment purpose details
Fill in the “Payment Purpose” field – this could be a contract number, utility address, item SKU, or any other information that helps the recipient identify the payment.

Step 4: Initiate the payment through the app
Most Ukrainian banks offer convenient mobile services. Tap confirm – and the transfer will be processed.

Processing Times and When Funds Will Arrive

All major Ukrainian banks are connected to a unified electronic payment system. This allows IBAN transactions to be processed daily from 1:30 to 22:30. When sent within this interval, processing time usually does not exceed one hour.

Important: banks continue processing payments on weekends, so the transaction may be completed even on Saturday or Sunday.

Key Advantages of IBAN in Modern Payments

High accuracy of transfers
IBAN contains check digits that automatically verify the correctness of entered data. This significantly reduces the likelihood of erroneous operations.

Speed in online mode
Thanks to the unified electronic payment system, transactions occur within an hour, which is especially convenient for urgent domestic and international transfers.

Universality and reliability
IBAN is supported by most countries, making it a standard for global money transfers.

What Happens if a Payment Is Delayed Over an Hour?

If funds have not arrived to the recipient after an hour from sending, it is necessary to wait for the settlement period to complete. The bank may be finalizing the operation, especially if the transfer was sent close to the end of the processing period or at the beginning of the next day.

If after 24 hours the payment still does not reflect on the account, it is recommended to contact your bank’s technical support with detailed transaction information (amount, date, time, IBAN of the recipient).