P27, the new Nordic Payments Platform, is assessing the possibility to acquire Bankgirot
P27, the new Nordic Payment Platform that aims to create a common payments infrastructure in the Nordic region, through its newly established company, has today initiated a due diligence to evaluate a potential acquisition of the leading Swedish clearing payment company Bankgirocentralen BGC AB (“Bankgirot”).
This is an important step in the integration of the Nordic payments market. P27’s ambition is to connect 27 million people in the Nordic region and enable national and cross-border real-time payments in all Nordic currencies. Would the acquisition become a reality, it would strengthen operational stability during the envisaged migration from Bankgirot to the new P27 platform.
P27, a joint initiative between Danske Bank, Handelsbanken, Nordea, OP Financial Group, SEB and Swedbank, aims at linking the Nordic payments region and to potentially enable cross-border real-time payments whilst simultaneously achieving scale and efficiency, while creating an innovative landscape by facilitating the development of third-party services.
“The Nordic region is ahead in both the payments and fintech industry. Exploring the possibility of establishing P27 is a natural next step for the Nordic banking sector, where we aim to combine the tradition of innovation with technical advancement”, says Lars Sjögren, designated CEO of P27.
Established already in 1959, Bankgirot ensures that more than six million transactions with a value of SEK 68 billion reach their destination on a daily basis. All mass payments, including real-time payments in Sweden, are processed by Bankgirot. The potential acquisition of Bankgirot would enable further possibilities to achieve real-time and cross-border infrastructure within the Nordic region. Bankgirot’s knowledge of complex payments and compliance would also be vital in potentially establishing a common Nordic payment system.
“The present owners look positively on P27’s initiative to potentially acquire Bankgirot. P27 and Bankgirot would together be able to create synergies and efficiency in the migration to the new Nordic system platform. However, it is a long process and the transaction will only be completed when Bankgirot’s owners and relevant authorities have approved the acquisition,” says Mikael Björknert, chair of the board of Bankgirot.
“This would be an important step in realising the goals of integrating the Nordic payments market. A potential acquisition would define our high ambitions and could enable further synergies within our payment infrastructure that creates increased customer value and more efficient payments within the Nordic region”, says Lars Sjögren, designated CEO of P27.
Bankgirot, is currently owned by the following banks: Danske Bank, Handelsbanken, Länsförsäkringar Bank, Nordea, SEB, Skandiabanken and Swedbank.
About P27 – Nordic Payment Platform
P27 is a joint initiative by Danske Bank, Handelsbanken, Nordea, OP Financial Group, SEB and Swedbank, exploring the possibility of establishing a pan-Nordic payment infrastructure for domestic and cross-border payments in the Nordic currencies and the Euro.
About Bankgirot
Bankgirot is a Swedish clearing house with 60 years of experience in delivering market-leading financial infrastructure. Every day, 6 million transactions or SEK 68 billion flow through Bankgirot’s payment system.
Bankgirot’s 200 employees develop the Bankgiro system and payments in real time. Bankgirot’s system enables services including Swish, Autogiro (Direct Debit) and electronic invoicing. Bankgirot guarantees and digitalises the Swedish payment market under licence from the Swedish Financial Supervisory Authority.
[1] The establishing of P27 as a new Nordic payment platform and the proposed acquisition are subject to regulatory approvals, including merger control approvals
P27 Nordic Payments Platform AB, nordicpayments.eu, is a company owned by six of the largest banks in the Nordics, Danske Bank, Handelsbanken, Nordea, OP Financial Group, SEB and Swedbank. The aim is to create one common state of the art payment platform in the Nordic countries. The work started in late 2017 with the ambition to go live 2021. The launch of P27 services is subject to a merger filing and clearing licence approval. The name P27 derives from the number of citizens in the Nordic countries, 27 million individuals.