FAQs on P27

Some FAQs on P27 are as below:


  • P27 payments chargeable?: Yes, but lower than traditional cross-border payment
  • Charge Bearer?: Same as SEPA
  • What makes payment as P27?: Sender and Receiver with IBAN+ Banks within Nordics+ Charge Bearer SHAR/SLEV+ Banks to have BIC+ Usage of “schema supported currency” as transfer currency
  • Governing body?: Nordic council for payments
  • What happens to SEPA?: P27 is not a replacement to SEPA but it is similar to that of SEPA with most of the rules are subset of EPC. Banks continues to use SEPA and P27 as two separate products
  • Does CSM support other than ISO20022?: NO as of now, banks who are using ISO15022 or other versions of ISO20022 should send and receive messages as per P27 norms. If some banks are using traditional messaging system, then they need to use file handlers/convertors to be in sync with scheme
  • P27 supported model?: Open loop model (Same as SEPA)
  • Does P27 clearing supports only direct participation?: As the system’s model is open loop, participants can be of type direct and indirect (same as SEPA)
  • Can P27 payments carry exchange information?: As per the scheme, it is not a core option but instead it is optional additional feature, hence not mandatory. Debtor/Creditor Bank’s can still perform exchange based on debtor/creditor currency difference w.r.t transfer currency

Impacts on Payment Projects:

  • Enhancements to open banking w.r.t P27
  • Support to handle claims, investigations, cancel requests on P27 payments
  • Enhancement to GUI, supporting manual handling, overview
  • Support of Additional Optional features as part of P27 in ISO20022
  • Optional enhancements on bank to customer reporting from initiation system
  • New products and payment types in initiation(both online and file) like P27 Credit Transfer, P27 Insta (probable re-use some of SEPA functionalities and fine tuning them to fit into the scheme of P27)
  • Enhancements to the ways for handling structured and unstructured remittance information

With the emergence of P27 initiative we can have some potential projects/enhancements in payments domain which were as discussed above. Other than this we can see P27 Direct Debit once the rules from Nordics are in place.


(Note: Please refer the latest schema document when implementing, as this information is as on July-2020)

Leave a Comment

Your email address will not be published. Required fields are marked *