Nordic Cross-Border Payments Remain Expensive

Sending money between Nordic countries remains costly despite close economic connections. A new central bank study shows cross-border payments are often expensive and slow. This directly impacts residents who travel, shop, or work across Nordic borders.

Transferring Nordic currencies between countries can incur fees of two to seven percent. For example, transferring 1,500 Danish kroner in local currency incurs high fees. However, using euros for the same transfer reduces fees to under one percent.

EU regulations cap transaction fees on euro transfers across the region. No similar rules exist for transactions made in local Nordic currencies. Finland is currently the only Nordic country that uses the euro.

Converting money twice creates practical issues when sending precise target amounts. The transfer first converts to euros before converting to the destination currency. This double conversion introduces extra accounting steps for cross-border households.

Danish national bank director Ulrik Nødgaard called for regulatory improvements and better infrastructure. Digital banks and the TIPS Cross Currency System could lower future transfer costs. However, commercial banks must actively opt in to support these instant cross-currency transfers. This report was published by The Local Sweden.