More expensive for Swedes to pay in Nordic currencies than in euros
News Although the Nordic region is highly integrated, it is still expensive to make payments between the Nordic countries. It is often both cheaper and quicker to make payments in euros than in Nordic currencies, even between two countries outside the euro area, according to a new report on the costs to households of cross-border payments, produced by the Riksbank in collaboration with the Nordic central banks.
In the report, the authors state that the lower costs of euro transfers are mainly due to EU regulations governing cross-border payments in euros, which do not apply to payments between the Nordic countries. The costs incurred by consumers who pay by card whilst abroad also vary considerably between the Nordic countries.
Niche banks (neobanks) generally offer cheaper payments in Nordic currencies within the Nordic region than traditional banks. Increased competition may help to reduce costs over time. The TIPS cross-currency infrastructure, which was launched by the ECB, Danmarks Nationalbank and the Riksbank and is available for use by the banks, could also improve cross-border payments in the Nordic region and reduce costs.
Read the report via the link below.