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.