P27 connects the Nordic payments market

The market for payments in the Nordics is already one of the most advanced in the world. With the P27 platform transactions, it will become even more transparent and efficient.

P27 is a partnership between SEB and several other leading Nordic banks with the joint goal of creating the world’s first multi-currency and multi-country clearing platform. It will enable domestic and cross border real-time payments on a secure and flexible platform. The new platform will be accessible for the 27 million inhabitants in the Nordic countries, hence the name P27.

Denmark, Finland and Sweden are starting out, and Norway is involved in planning for the next steps.

What's in it for me?

The new payment infrastructure will pave the way for new services related to payments. These services will focus on improved user experience, security, transparency and to reduce the risk of fraud. This transformation, starting with Swedish payments in SEK, will help both private individuals as well as corporates to ease the friction of handling everyday situations related to payments.

Benefits for corporates

P27 will offer more efficient and simpler payment processes – both domestic and cross border. The harmonization will also remove friction in the trade between companies within the Nordic region and for international transactions to and from the Nordic countries.

The sender will be able to provide much more information per payment. For the receiver payment reconciliations will be easier and this will provide companies with a great opportunity to automate processes and become even more efficient.

Benefits for private individuals

You will have a true real-time experience for even more payment products, and you will be able to send payments later in the day. In addition, you will have the opportunity to forward more information to the receiver of your payment.

Other than that, the change of platform will not affect how you perceive the sending and receiving of payments. Bankgiro and Plusgiro numbers will still work the same way, as will the Swish solution.

Prepare for ISO 20022 format

For the platform to work, all involved parties must use the same payment format. This is the reason for changing to ISO 20022 – it is a step towards making your payments faster, smoother and more secure.

Changes for corporates, ERPs and service bureaus, related to Swedish payments in SEK

Corporates:

We recommend that all our corporate customers migrate from the Swedish file formats into ISO 20022. This means that those of you who use other formats such as local Bankgiro formats for your Swedish payment files need to prepare for a migration to ISO 20022. Corporate customers that have direct communication access with Bankgirot - via file transfers - will need to integrate directly with a bank instead.

Payments are often managed in the accounting or ERP systems, and in such cases, it is the ERP vendor that needs to prepare. We recommend that you contact the ERP vendor to ensure that a migration into ISO 20022 is possible.

After contacting your ERP vendor, reach out to your SEB contact and together we can plan for a good migration.

ERP vendors and service bureaus:

When P27 launches, all file communication will be in the ISO 20022 format, and communication will be directly with the bank instead of with Bankgirot as the case could be today. Today’s payments and balance reporting will be replaced with new products using the ISO 20022 standard. We recommend that you make sure that you can support the new format as soon as possible.

For more information, read about File integration partners

What is P27?

P27 is a digital payment platform that will enable a multicurrency clearing for cross border and domestic payments. P27 will enable instant credit transfers to and from corporates and private persons via their banks or payment service providers. The payment formats will be based on the same standards as used in the European region for SEPA payments and thereby contribute to streamlined and efficient payment processes, e.g., reconciliation of payments and simplifying error handling of payments independently of currencies – EUR, DKK and SEK. The rulebooks used in P27 are kept and governed by Nordic Payment Council. By aligning standards with those of Single Euro Payments Area and applying to payments in the eurozone, P27 will bring further harmonization to the European payments landscape.

To fully benefit of the new payment infrastructure the legacy payment infrastructures in the Nordics need to be replaced. More information about the payment platform is available on the website https://nordicpayments.eu/

One payment format – ISO 20022

The Nordics will in the future have one common payment standard. It is called ISO 20022 and is a standardized format for electronic payment information. ISO 20022 is becoming a global language for payments messaging, used by payment systems in over 70 countries. According to the International Standards Organization, ISO 20022 will in the next few years be supporting around 80 % of global volumes and around 87% of value of transactions worldwide.

In Europe ISO 20022 is used for European SEPA payments end-to-end. This is not the case for domestic payments in Sweden and other Scandinavian countries, which have local standards and a more fragmented payments structure, hence not yet an ISO 20022 standard end-to-end.

ISO 20022 will be the standard for all payments on the new Nordic payments platform, regardless of whether payment is made via file transfer, an online bank, or Swish (or equivalent services in the other Nordic countries). 

By producing a common standard and model for payments data, ISO 20022 substantially improves the quality of data across the whole payment infrastructure. ISO 20022 gives possibility for richer data end-to-end, the data in turn is structured and more relevant. It allows for quality data which means quality payments. Quality together with meaningful data will improve user experiences, while also improving compliance and efficiency. This means more transparency and more remittance information for the users.