Increasing the Security of Online Trade and Payments by Dmytro Zarakhovych


Ukrainian e-commerce is constantly growing despite all the difficulties. Thanks to the joint work of, OLX, the biggest international trade marketplace, and UAPAY, Ukrainian national payment service, even one of the biggest obstacles — the lack of secure delivery and payment — is a thing of the past. Dmytro Zarakhovych,’s co-founder and managing partner, shares how the introduction of escrow and innovations make it possible to restore the country’s online economy.

Ukraine is one of Europe’s most digitalized and advanced countries. The fintech industry is mainly thriving. The country’s banks and payment solutions can give a head start to Western competitors, and Ukrainians themselves master technologies faster and more efficiently than the world on average. For example, according to a MasterCard report, six out of ten contactless payments in Ukraine are digital payments with NFC gadgets.

Paying with a smartphone is already the norm for us. But this is far from the unlimited possibilities the digital state can offer. The next quiet payment revolution is currently taking place in the e-commerce segment — another breakthrough segment of the Ukrainian economy. Before full-scale war, it grew at 20% annually, outpacing almost all other industries.

But until recently, this rapid development was significantly slowed down by one factor — trust. Ukrainian P2P marketplaces, i.e., platforms where users can trade with each other, have had a chronic problem with payment security. The buyer and seller took risks, developing payment schemes that would suit both parties. We worry not only for ourselves. VISA research says 7 out of 10 Ukrainians worry that their loved ones may become victims of online fraudsters.

How do Ukrainian services manage to change this? For example, the joint effort of, OLX, and UAPAY gave birth to international Escrow technology on the marketplace — the OLX Delivery service.

Escrow accounts are by no means a novelty. Although the history of this principle dates back to the 19th century, their first institutionalized use occurred during the Great Depression in the United States. Currently, escrow is often associated with construction, where such accounts protect against ‘pyramid schemes’ because the developer receives funds only after the object is handed over.

The Escrow mechanism ensures that the buyer’s money remains in the system until the buyer receives the order and is satisfied. This reduces the risk of deception and fraud. But trust in e-commerce and, as a result, the average check is growing. People are actively selling and buying more expensive things.

How It Operates

As part of the project, made a significant integration with key logistic companies in Ukraine, which made it possible to create a delivery service with OLX Delivery throughout Ukraine only within a couple of days.

The payment solution was implemented through the seamless UAPAY. The service goes beyond standard acquiring services by offering a suite of comprehensive, customizable solutions designed to meet the unique needs of each business. Our innovative services encompass a broad range of capabilities, from seamless logistics integrations to diverse payment option, all aimed at optimizing business processes.

The range of payment solutions covers everything from traditional cards to Google Play, Apple Pay, IBAN-IBAN transfers, QR codes, installment plans, BNPL, and cryptocurrency payments. This ensures that every customer finds a convenient payment method, increasing customer satisfaction and conversion rates.

The technology allows integrating with the largest logistics companies in Ukraine: Nova Post, UkrPoshta, MEEST.

During several years of cooperation, this project has become one of the most successful in Ukraine. In 2022, only ‘OLX Delivery’ carried out 12.7 million transactions, and the total number of transactions from the first day of the project amounted to 29 million.

The total number of purchases for 2022 was USD 234.5M. These are extremely large numbers, accelerating the recovery of Ukrainian e-commerce to the annual volume of USD 3-4B as recorded before Russia’s full-scale invasion. The coverage of the service is also impressive — the number of customers for all time exceeds 6.9 million. That counts at least every sixth Ukrainian.

For OLX, the most popular e-commerce platform in Ukraine, the comfort and security of payments are significant contributions to accelerating economic recovery of Ukraine.

To maintain and even accelerate the pace of growth, it is necessary to increase further the safety of the activities of all participants in the process. Ukrainians are ready to buy online and have better protection against fraud. Thanks to PCI DSS security certification and compliance with GDPR principles, the protection of users’ personal data and the security of operations are guaranteed.

For business, escrow and similar mechanisms are also an absolute plus. Customer loyalty directly depends on the convenience and security of payment. In Ukraine, where customer orientation has long been a trend, this is understood best. That applies not only to private businesses: our payment solutions are integrated into state projects for the Ministry of Justice to pay statements and the Electronic Driver’s office operated by the Ministry of Internal Affairs of Ukraine.

Ukraine is developing towards safe and convenient online payments, overcoming obstacles, and promoting the growth of electronic commerce. Consumer protection mechanisms known for a long time in the world are taking on new forms while maintaining the main thing — the impetus for economic development and business recovery.


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