Banking Circle improves speed and reduces cost for businesses tapping into the Danish market
By Joy Dumasia
Banking Circle has joined the Danish national intraday clearing system. Through Banking Circle as a direct clearing participant, Payments businesses and Banks can now payout and collect payments locally in Denmark on behalf of their customers more quickly and at a lower cost than via traditional cross border payment methods. This will enable e-commerce businesses around the world to tap into the growing Danish market.
According to JP Morgan data, Danish e-commerce saw double-digit growth in 2020, citing Denmark as a nation willing to spend high amounts online. However, it appears to be a relatively untapped market for cross border transactions, accounting for just 22% of Denmark’s overall e-commerce market. Banking Circle’s investment in establishing direct clearing for the Danish Krone will enable Payments businesses and Banks to extend their e-commerce clients’ services to capitalise on this market.
Banking Circle enables its clients to offer their customers payments and collections in DKK in their name rather than the Financial Institution used to send the payment. This is crucial for scaling accounts and delivers faster onboarding, improved payment infrastructures, more ownership of payments, and faster, smoother reconciliation.
Anders la Cour, Chief Executive Officer of Banking Circle Group, said: “Previously, businesses based outside of Denmark and wishing to trade in the Danish market had no choice but to rely on the slow, costly and outdated correspondent banking network. Now, following our significant investment to build the payment rails as a direct clearing participant in the Danish national intraday clearing system, Banking Circle is uniquely able to offer Payments businesses and Banks access to faster, lower cost collections in Denmark. This new clearing capability and direct settlement on Banking Circle’s own account with the Danish Central Bank, all integrated into our cloud-based payments infrastructure for optimum agility, means our clients can process payments in DKK as if they were local transfers. This reduces the payment friction involved in going through partner banks.”
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June 02, 2023
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