Nordic Cross-Border Payments Remain Expensive

Sending money between Nordic countries remains expensive and slow for residents.

A new analysis by Nordic central banks revealed these high transaction costs.

Transfers carried out in Nordic currencies can cost between 2 and 7 percent in fees.

Sending payments in euros is often much cheaper across the region.

EU rules cap transaction fees on euro transfers across member states.

For example, a transfer of 1,500 Danish kroner costs under 1 percent in euros.

However, euro transfers require double currency conversions, which creates practical issues for exact amounts.

Ulrik Nødgaard is the director of Denmark's national bank.

He stated that close economic ties are not reflected in cross-border payments.

He noted that regulation, competition, and better infrastructure can lower these costs.

Digital neobanks and new infrastructure like the TIPS Cross Currency System could help.

TIPS enables immediate transfers between Danish kroner, Swedish kronor, and euros.

However, commercial banks must actively sign up to use this system.

This story was reported by The Local.