instant payments (ip) in the nordicsapr 15, 2019 · nordic countries developed some of the most...

Instant Payments (IP) in the Nordics

Treasury and Trade Solutions | Nordic Region

Maciej JanuszHead of Cash Management, Nordic Region at Citi

Parry Batta

Instant Payments Summit 2019 | Amsterdam

Nordic countries developed some of the most advanced payment systems in the world through exceptional level of collaboration and customer centricity. All 4 countries top the rankings of number of electronic payments per capita paving the way to ‘cashless’.

Finland

Sweden

Norway

Denmark

Finland

Introduction Sweden Norway Denmark Finland ‘Swish’ P27 e-Krona

27 Million People

Top scores in driving

cashless agenda

GDP of 1.5 trillion USD (combined)

3 currencies are at

negative interest rate

Ericsson, Volvo,

Electrolux, Spotify,

iZettle, Nokia

Sweden went live with Instant Payments in 2012 with the introduction of Swish scheme which was dedicated for P2P payments instructed via mobile. In 2014 it was expended to P2B flows and in 2017 into eCommerce.

Finland

Sweden

Norway

Denmark

Finland

• ACH: Bankgirot, DataClearing.

• Credit Transfer System:

Plusgirot

• Instant Payments: BIR (Betalningar i

Realtid).

• Mobile IP scheme: Swish

• RTGS: RIX operated by Riksbank

Payment Systems in Sweden


Latest Development: Riksbank is evaluating TIPS for Instant Payments service for SEK.

Norway implemented Instant Payments in 2014 under the name of Straksbetalinger. This system is currently being enhanced to version 2.0 due to go live later in 2019.

Finland

Sweden

Norway

Denmark

Finland

• ACH: Nets (NICS system)

• Instant Payments: Straksbetalinger

(version 2.0 under implementation)

• Mobile IP scheme: Vipps

• RTGS: NBO operated by Norges Bank

Payment Systems in Norway


Latest Development: Implementation of BRO project – Instant Settlement service.

Danish Instant Payments system Straksclearing was implemented in 2014 by Nets. It initially facilitated account to account transfers but it currently process also payments instructed via MobilePay service.

Finland

Sweden

Norway

Denmark

Finland

• ACH: Nets (operating SUMClearing

and Intradagclearing)

• Instant Payments: Straksclearing

• Mobile IP scheme: MobilePay

• RTGS: Kronos2 operated by Denmark

Nationalbank.

Payment Systems in Denmark


Latest Development: Implementation of Kronos2 in 2018 – SWIFT MT based RTGS system in 2018.

Finland contributed to RTP schemes in the region with its latest addition of Siirto scheme implemented in March 2017.

Finland

Sweden

Norway

Denmark

Finland

• ACH: N/A (SEPA schema via EBA

STEP2)

• Instant Payments: SCT Inst (RT1 and

TIPS).

• Mobile IP scheme: Siirto

• RTGS: POPS (domestic), Target2

Payment Systems in Finland


Latest Development: Target Instant Payment Settlement (TIPS) go-live in November 2018.

Swish is a mobile payment system in Sweden. The service was launched in 2012 by six large Swedish banks in cooperation with Clearing House (Bankgirot) and the Central Bank of Sweden (Riksbank).

Information on this slide was compiled using Swish Merchant guide document available on getswish.se


Swish in eCommerce (Swish Handel)

Since the implementation adoption rates grew at double digit pace, hitting a milestone of 1billion payments and 7 million activeusers.


Swish Payments Statistics2013-2018

P2P P2B eCommerce

Information on this slide was compiled using Swish Statistics Report available on getswish.se

Project 27 (P27) is a project initiated by seven banks to break down barriers for trade and financial interaction between the Nordic countries by simplifying, standardizing and harmonizing transactional products and enabling faster adaptation of new technologies.

P27 Vision Statement P27 Objectives

Information on this slide was shared during SIBOS 2018 on a presentation titled: “Working towards a pan-Nordic payment infrastructure”


P27 provides a future proof infrastructure, enabling faster adaptation to the new technology helping the Nordic countries to maintain their position as some of the worlds most digital societies.

Projected Benefits of P27

Information on this slide was shared during SIBOS 2018 on a presentation titled: “Working towards a pan-Nordic payment infrastructure”

1. Instant harmonized Cross Border Payments within Nordic region, with potential reachability into EUR-zone with SEPA Instant (for EUR transfers only).

2. Cost efficient Cross Border Payments within the Nordic region through a single centralized infrastructure (P27).

3. Harmonized data standards across the region.

4. Enhanced Collection models from Direct Debits to Customer Payment Activation Request (CPAR) and e-Invoicing.

5. Instant FX capabilities and Enhanced Liquidity Management.

Corporate Clients Perspective


With lack of consensus on the applicability and impact to financial stability between the Central Banks and even governing institutions (BIS vs. IMF), Swedish Riksbank is currently trailblazing research into e-Krona concept.

Definition of e-Krona Why Riksbank is considering e-Krona

How could e-Krona operate ? Key Benefits

An e-krona is a Central Bank Digital Currency (CBDC) issued by the Riksbank, which means that it is a claim on the Riksbank in the same way as cash is. Its value is stated as SEK. The e-krona is broadly available to the general public 24/7/365 and can be used to make instant payments at the desired point in time.

There are currently two main models of issuing e-Krona:

(1) ‘Account based’, where each users would effectively have to open account with Central Bank

(2) ‘Value based’ (effectively e-Money), which could be stored on a card or mobile device.

- Accordingly to Riksbank report from Oct’18 current recommendation is to move ahead with value based krona.

- Initially its expected that e-Krona will be non-interest bearing, but its considered that interest rate can be used to influence ‘demand’.

One of the reasons for the e-Krona initiative is continuing decline in the use of cash (dropping to 13% in 2018) that may lead to total marginalization (and lack of acceptance) of cash as a means of payments in coming years.

It is initially non-interest-bearing. An e-krona gives the general public access to central bank money even when cash is not available

A. Modern electronic form of payment complementary to Cash.

B. Alternative Payment system in case of dominant retail payment system failures.

C. Its based on competitively neutral infrastructure.

D. Accordingly to Riksbank it would promote safe and efficient payment system operation in Sweden which is one of critical Central Bank mandates.

Accordingly to information included in e-Krona project report 2 published by Riksbank on 26/Oct/2018


High Level view of the interconnected, omnichannel e-Krona platform.

Omichannel Interconnected

Accordingly to information included in e-Krona project report 2 published by Riksbank on 26/Oct/2018

Source: Riksbank


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instant payments (ip) in the nordicsapr 15, 2019 · nordic countries developed some of the most...

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