25/06/2024 10:19 PM

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Finance Denmark selects P27 to become new national clearing house

A ground breaking plan for Denmark’s financial sector has been approved by the board of Denmark’s banking association, Finance Denmark.

P27 Nordic Payments Platform

Finance Denmark selects P27 Nordic Payments

According to the new sector plan, P27 Nordic Payments will become the new national clearing house, replacing Finance Denmark, which, for historical reasons has carried out this task on behalf of the Danish financial sector.

The new plan is a crucial step toward achieving the goal of making it easier for businesses and citizens in Denmark to pay bills and send real-time payments to other Nordic countries.

In the future, it will also become easier to make cross-border payments in Nordic countries.

What does this mean for payments in Denmark?

It means that Denmark’s financial sector, with broad sector representation, has decided to secure robust and stable systems enabling Danish krone transactions between participating banks to be cleared at any time and settled at the central bank, Danmarks Nationalbank.

It provides the market with favourable conditions for developing state-of-the-art payment products for Danish residents and businesses, and also supports financial stability in Denmark.

It will eventually make it even easier for companies and individuals to make payments and potentially also make it easier to pay bills in the future.

The Danish banking sector is investing hundreds of millions of kroner in the continued modernisation of these systems, and once the new payments infrastructure has been put into operation, the players in the payments market will have new opportunities to develop innovative solutions for the benefit of consumers.

At the same time, Denmark will be brought up to date with the latest payments standards, which again is instrumental for enabling payments solutions across the Nordic region and potentially also in the rest of Europe. It will bring great benefits to all of us.

Practical examples

“The updated infrastructure could make it possible for a MobilePay user in Denmark to make a payment to a Swish user in Sweden,” says Michael Busk-Jepsen, Director of Digitization at Finance Denmark.

“Another example would be a Danish company wanting to send a real-time payment to a European partner. It will also be possible to develop new and innovative bill payment and other solutions.

This new, open infrastructure will create the foundation for building state-of-the-art payment solutions for customers throughout the Nordic region.

Furthermore, Danish banking customers will continuously benefit from this modern payments infrastructure since banks and other providers will be able to build new customer solutions on top of this infrastructure.”

P27 will have an important role since it will be the sector’s new clearing house, not only in Denmark, but also in Sweden and Finland. The hope is that Norway will also join the Nordic clearing-family.

That could potentially result in a Nordic clearing setup with full interoperability across the region, replacing the current national clearing operations.

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