P27 – the world’s first real-time cross-currency payment system, encourages collaboration, not competition, to offer 27 million Nordic inhabitants an easier way to make payments. Even good change carries inevitable growing pains, so Key Account Manager Josefin Holmgren recommends preparing for the new infrastructure by connecting to Pagero Online.
What is P27?
In February 2018, a number of Nordic banks published their ambition to create a common Nordic payment infrastructure to meet market needs for efficiency, standardisation, freedom of choice and cost focus. The initiative is called P27.
The banks that form the P27 Group are Danske Bank, Handelsbanken, Nordea, OP Financial Group, SEB and Swedbank. The new payment platform will enable users to make direct payments between different currencies across national borders of Nordic countries. The intention is for the new platform to replace the nine different platforms that currently exist to create faster, safer, cheaper direct payments between the Nordic countries.
“Methods of offering products and services in the payment industry have begun to change.”
Shifting demands in the payment industry
The global payments industry is a rapidly changing project of ongoing structural transformation—the result of continuously changing demands for quicker, safer cross-border payments.
Customers today want time-optimising, high-security financial processes that provide a clear overview of their business transactions. Equally as important is a sense of freedom in these transactions—it’s no longer viable to be tied to a specific bank or a certain country’s commercial regulations.
New norms for payments have developed as an answer to modern technologies, government-mandated regulations, changing payment behaviours and new demands from the market for more streamlined payment methods. Methods of offering products and services in the payment industry have begun to change, and the need to do so will continue into the foreseeable future.
Changes in the Nordics began in 2016 with the implementation of SEPA, and it will soon be time for change again—this time under the designator of P27.
“Businesses working with the old formats will have to adjust their operations.”
What does P27 mean for your business?
The first step within the P27 Group was to develop the underlying infrastructure. In a second step, new common products and services based on the platform will be developed for public use.
Simply put, when P27 comes into effect, country-specific services and unique bank formats will be terminated and replaced by new ones. Businesses working with the old formats will have to adjust their operations to continue conducting valid payments using the new, standardised formats and services.
This means that your company needs to prepare for what is to come and not get caught off guard when the new payment system hits. The most sure-fire way is to partner with the right service provider that can take care of the technical details so you can continue business as usual without getting hindered by the changes.
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