Nordic bank-backed P27 has struck a deal with Mastercard to provide the underlying infrastructure for its real-time, cross-border payment project.
Owned by Danske Bank, Handelsbanken, Nordea, OP Financial Group, SEB and Swedbank, P27 is bidding to replace ageing domestic infrastructures with a real-time and batch multi-currency platform that will enable consumers and businesses to send and receive funds across the Nordic markets.
Lars Sjögren, CEO P27 Nordic Payments Platform comments: “This is change for real. By joining forces across the Nordics we will be able to develop instant payment solutions in a way that each country never would accomplish by themselves. By sharing the costs between the Nordic countries, we will get a state of the art payment infrastructure in the Nordics with the highest standard when it comes to security and efficiency; further boosting innovation and growth in the Nordics."
He says the underlying infrastructure is the first step that this partnership is establishing. Thereafter, there will be efforts in developing further common products and services based on the platform.
For banks, the new platform will provide a real-time view of the multiple schemes that are running, participant information, balances across schemes and the addition of a data-rich message set, opening the way for the creation of new revenue opportunities.
Says Sjögren: "The demand from consumers and businesses around the world for instant and account to account payments is growing and this new payment infrastructure will put the Nordic markets at the forefront with an ecosystem that connects all bank accounts. Not too far in the future, family and friends might be able to pay each other using mobile devices, regardless of what service they use or which country they live in. Businesses can take advantage of access to a wider network of customers and suppliers, and the seamless movement of money when paying or getting paid. This one single interface will make it easier for banks to handle all payments - domestic, European and beyond.”
The ambition is to go live 2021, subject to a merger filing approval, clearing license application and final investment commitments.