monobank will make payments by IBAN free of charge

Ukrainian neobank monobank announced the cancellation of the commission for transfers using IBAN details from its own funds. If from the moment the project was launched in 2017, the rule of free transactions up to UAH 10,000 was in effect, and amounts above this limit were subject to a commission of 0.5%, now the restrictions on the size of the payment have been completely removed.

Completion of the “10 thousand” rule

At the beginning of the bank’s work, transfers through the NBU electronic payment system were not a mass instrument for retail clients. Users more often chose P2P transfers between cards, while operations using full bank details were used less often. Over time, the situation has changed: the IBAN format has become the standard for paying utility bills, personal income taxes, training, and large purchases.

The co-founder of monobank Oleg Horokhovsky noted that the previous model of commissions has lost its relevance, and the renewal of tariffs should preserve the competitiveness of the product on the market.

Loss of income and loyalty calculation

According to the bank’s internal estimates, the commission for large IBAN transfers brought in more than UAH 200 million per hour. Refusal to do so means a reduction in the corresponding income item, however, the company is counting on a long-term effect — an increase in customer loyalty and a simplification of the tariff policy.

The changes apply exclusively to transfers from own funds. Operations at the expense of the credit limit continue to be serviced under the conditions stipulated by the current tariffs.

Market context

Experts associate the decision with increased competition in the Ukrainian fintech sector. Users expect transparent conditions and the absence of additional fees for standard banking operations. Simplifying tariffs and waiving commissions for IBAN payments may push other banks to reconsider their own monetization models.

In parallel, the digitization of financial services continues. In particular, in Ukraine, the launch of the “eChek” service in banking applications has been announced, which will allow storing and controlling electronic checks without paper copies.