In our latest white paper, ‘Payments without barriers: Focus on Denmark’, we delve into the opportunities and challenges for cross-border trade in the country.
While slow settlement times and high costs are a common barrier for businesses wanting to trade in smaller markets, improved direct clearing via the Danish National Intraday Clearing System is allowing businesses to tap into the market opportunities in Denmark and benefit from faster, lower cost payments and collections. However, there are still barriers when it comes to trading with businesses and consumers in Denmark.
Key findings of the paper include:
- The total cost of payments in Denmark is around 0.8% of GDP, according to the Danish Central Bank
- Business-to-business transactions account for 27% of that total, or Danish Krone (DKK) 4.2 billion
- Denmark has the second-highest electronic payments penetration rate in Europe, and the total volume of digital commerce grew by almost 30% in 2020 alone
- However, 37% of companies transacting in and out of Denmark are looking to improve their trade settlement times – 10% higher than the average across Western Europe
How can Payments businesses, Banks and Marketplaces support customers that want to sell in Denmark?
As a tech-first Payments Bank, Banking Circle has added direct clearing capabilities for DKK. By connecting to Denmark’s national intraday payment system, we are reducing friction for Payments businesses, Banks and Marketplaces by giving them access to faster, cheaper collections.
In addition, through the Banking Circle Payments On Behalf of (POBO) and Collections On Behalf Of (COBO) solution, our clients can offer their customers payments in their own name rather than that of the Financial Institution used to send the payment. This allows for scaling of accounts, while delivering faster on-boarding, improved payment infrastructures, more ownership of payments, and smoother reconciliation.
Download the white paper here, or read more about our Local Payments solutions here.