P27: Simplifying payments in the Nordics
With nine different clearing systems, outdated payment platforms and multiple overlapping products across borders, you may experience barriers and complexity when doing business across the Nordics, and you may need to set up your payments differently depending on market-specific requirements.
With the new common payment platform in the Nordics – P27 – you will experience simpler, faster and more secure payments. P27 will considerably reduce the complexity you experience today by introducing one standard format for both domestic and cross-border payments in the Nordic region, enabling you to save time and resources.
Initially, the infrastructure will support the currencies SEK, DKK and EUR. However, P27 is designed to include more currencies over time.
Your payments will be simpler, faster and more secure
- Simpler – you only need to use one payment format. The new standard format will be ISO20022 XML
- Faster – real-time payments in SEK, DKK and EUR
- More secure – the standardised format and improved processes will contribute to lower financial and operational risks
We will support you in the transition to P27Regardless of your business’s situation and how you do payments today, we will be happy to support you in the transition to P27. The first step in your preparations is to prepare for the new standard payment format.
Reach out to your Cash Manager to have a dialogue about how your business can prepare to ensure a smooth transition in due time.
P27 will bring multiple benefits for
how your business do payments
Reduced complexity with new format
It will be easier for you to handle payments seamlessly across the Nordic countries and currencies, because you only need to use one standardised format (ISO 20022 XML).
Payment and reconciliation processes will be easier and with reduced complexity
The majority of existing payment products will be replaced by two solutions, with a number of optional features to match your specific needs.
Opportunities for instant payments across borders
With improved cut-off times and faster payment processes, you will have better options for real-time payments. Improved speed and flexibility to handle payments when it suits you.
Improved reference options
You will get improved options to include more information when sending a payment, which will make your payments more transparent and easier to reconcile.
Lower financial and operational risks
The format and process will be the same across countries and banks, and will contribute to lower financial and operational risks to the benefit of both you and your counterparties.
What can I do today to ensure my business will be ready for P27?P27 will not entail major short-term changes in Denmark, but you are well prepared if you contact your ERP system provider. To take full advantage of simplified payment processes and the possibilities for additional information on the payment, Danske Bank encourage you to change payment format to ISO 20022, XML.
Most ERP systems already accommodate the new format. Reach out to your ERP provider to ensure they can handle the new format for payments, salaries, reporting and credit invoice monitoring. We also encourage you to reach out to your Cash Manager to have a dialogue about how your business can prepare to ensure a smooth transition in due time.
What will P27 mean for our subsidiaries and payments in Sweden?
If you have Swedish subsidiaries or process domestic SEK payments, you need to ensure the ERP provider of your Swedish subsidiary can handle the new ISO 20022 format. If you or your subsidiaries communicate directly with Bankgirot, ensure the communication is redirected to your bank, as direct file communication with Bankgirot will be closed down.
If you have Swedish subsidiaries, read more in the Q&A below.
Changes in the payment industry
See our experts from Danske Bank explain what P27 is and what the changes mean for you as a customer.
Questions and Answers
What is P27
P27 is a new payment infrastructure with the goal of enabling payments within and between the Nordic countries in real-time, with standardised rules and payment standards.
Why have the banks joined-up to make these changes?
The current infrastructures in the Nordic countries are outdated. To initiate a collaboration and together establish a Nordic payment infrastructure provide great benefits, both for the banks’ customers and society as a whole, and there are market expectations to standardise, simplify and improve cross-border payments in the Nordic currencies. Many of Danske Bank’s customers are Nordic or global businesses and will benefit from the standardised payment format and harmonised processes.
What is the idea with P27 - how will this make payments easier for my business?
The new payment infrastructure will make it simpler, faster and more secure to send and receive payments in the Nordic countries through one unified payment format and one clearing platform.
Who is behind P27?
Danske Bank, Nordea, SEB, Swedbank, Handelsbanken and OP Financial Group have together invested in the company P27 Nordic Payments and own P27 with the purpose of establishing a Nordic payment infrastructure.
Do I have to do anything differently as a result of P27?
The ambition with the new payment infrastructure is to create a common and future proof infrastructure across the Nordic countries that makes it easier to send and receive payments. For business customers with file communication, this will entail changes, e.g. new file formats and improved cut-off times. It is our recommendation to start transitioning to the new standard format ISO20022 XML, and we will of course support you in the process.
How do I ensure my business´s financial system can handle the new ISO 20022 XML format?
We recommend that you contact your ERP provider to ensure they support the new ISO20022 XML format. Many would already know this file format because it is the standard format for SEPA payments. With the new format, you can add more information to the payment, making it easier to reconcile. Additionally, the extra space for more information reduces the need for paper-based advices. Today, local formats cannot be used across countries, but with the ISO 20022 XML format you get a new, more modern file format that can be used for all payments within and across the Nordic countries.
What should I do if I have Swedish subsidiaries or are processing domestic SEK payments?
Ensure your subsidiaries are prepared and can handle the new ISO 20022 XML file format to maximise benefit of P27 payment processing. If you or your subsidiaries communicate directly with Bankgirot, ensure the communication is redirected to your bank, as direct file communication with Bankgirot will be closed down.
Additional implications of P27 for payments in SEK:
You can still use BG numbers
- Bankgiro numbers will continue to work as Alias
- A new Alias register will allow you to see who owns the Alias
OCR can still be used as Creditor Reference Information
- In combination with a corresponding Alias
Same time salary bookings will still be possible
- If marked correctly in the new format
Credit invoice monitoring will not be provided
- But the functionality is supported by many ERP systems today
Changing the account behind the Bankgiro number will still be possible
- It will still be possible to keep your BG number (Alias in P27) and connect it to another account
It will still be possible to include credit invoice information with the payment
- If you use ERI, it will be possible to specify both credit invoices (CINV) and credit notes (CREN) in the payment
- Without ERI, only credit invoices (CINV) are possible
When will P27 be implemented in Denmark?
P27 and the banks will implement DKK batch payments during 2022. First transactions are expected to go through P27 in Q2 2022 and a sequenced implementation will follow to allow the remaining banking community to join P27.
What is the link between P27 and Mastercard?
P27 is the company that establish the new infrastructure. Mastercard is the supplier to P27 that will build and make the technical platform available.
Need to talk to us about P27?
You are welcome to contact your Cash Manager to have a dialogue about what P27 is and what it means for your business.