Nordic currency transfers cost 2-7 percent across borders
Cross-border transfers in Nordic currencies cost 2-7 percent on a DKK 1,500 payment, a joint Nordic central bank analysis finds. Governor Ulrik Nødgaard points to regulation, competition and better infrastructure as ways to lower costs.
Euro transfers cost less
A DKK 1,500 credit transfer between Nordic countries generally costs less than 1 percent when made in euro, compared with 2-7 percent in a Nordic currency.
The euro advantage also applies between countries that do not use it.
European Union (EU) rules limit fees on euro credit transfers, while no corresponding rules cover Nordic currencies.
Many consumers do not know they can save by transferring in euro.
However, sending a specific amount in another Nordic currency can involve practical difficulties: funds undergo two conversions, first from Danish kroner into euro and then into the destination currency.
The joint analysis documents these costs despite close economic ties and frequent cross-border living, working and shopping.
Instant infrastructure awaits bank connections
The TIPS cross-currency service already enables instant payments between Danish kroner, Swedish kronor and euro.
The analysis identifies bank connections to this service as a route to faster and cheaper payments across the Nordic region.
It also identifies greater competition from new payment service providers, including neobanks, as a possible means of lowering cross-border costs.
Legislators may consider further regulation at EU or national level.
Nødgaard said economic integration is not sufficiently reflected in cross-border payments.
Access alone is not enough
The analysis identifies both a regulatory gap and an infrastructure opportunity.
Euro fee limits do not extend to Nordic currencies, and the TIPS service still requires banks to connect.
For consumers, the report describes recurring costs rather than a one-off inconvenience.
Source: Intra-Nordic payments remain expensive
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