The Single Euro Payments Area (SEPA) has transformed the European payment landscape by making euro transfers easier and faster. However, it remains crucial for businesses in Denmark and Sweden to have accounts in their local currencies—Danish kroner (DKK) or Swedish kronor (SEK).

By doing so, businesses can reduce currency risks and be better prepared to leverage new payment solutions such as TARGET Instant Payment Settlement (TIPS) and TARGET Services, which will become part of Denmark’s payment infrastructure in April 2025.

Advantages and Limitations of SEPA

SEPA has standardized euro transactions across 20 countries that use the euro as their currency, out of a total of 27 European countries participating in the SEPA framework, with 7 having their own currencies. SEPA makes cross-border payments within the EU easier and cheaper. Additionally, 9 non-EU countries partially use SEPA’s features and offer euro accounts to facilitate euro-to-euro transfers.

However, SEPA has some limitations:

• SEPA is designed exclusively for euro transactions and does not support local payments in DKK or SEK.
• Some banks in countries with different currencies may use SEPA transfer features, allowing local currency deposits via SEPA. However, most transfers that require currency conversion are processed through SWIFT with foreign exchange (FX) conversion.
• Businesses in Denmark and Sweden must rely on local payment systems for transactions in their national currencies.

Why should businesses have local currency accounts?

For businesses operating in Denmark or Sweden, having a local currency account is essential for several reasons:

• Avoid Currency Risks: Companies that only hold euro accounts are exposed to exchange rate fluctuations, which can result in unexpected costs.
• Receive Payments from Customers: Using the local currency makes it easier and cheaper for customers to pay businesses.
• Regulatory Compliance: Certain taxes and fees in Denmark and Sweden must be paid in the local currency.
• Faster and Cheaper Payments: Using local payment systems helps businesses avoid delays and additional costs associated with international transfers.

TIPS and TARGET services – new payment systems in 2025

In April 2025, Danmarks Nationalbank (Denmark's central bank) will transition to TARGET Services, modernizing the payment infrastructure for DKK. At the same time, TIPS will expand to support both DKK and SEK, making instant payments available to businesses in the Nordic region.

TARGET Services:

• A pan-European payment system that Denmark will join in 2025.
• Aims to improve the security and efficiency of DKK transactions.

TIPS (TARGET Instant Payment Settlement):

• Introduced in 2018 for euro transactions, now expanding to SEK and DKK in 2024-2025.
• Enables instant payments in DKK and SEK across Europe.
• Provides businesses with faster transactions and better liquidity management.

For more information, visit Danmarks Nationalbank.

Comparison of Payment Infrastructures

SWIFT

Currencies: DKK, SEK, EUR, +more

Speed: slow (1-5 days)

Use case: international payments

SEPA

Currencies: EUR

Speed: fast (same day)

Use case: Euro payments in EU/EEA

TIPS / Local payment systems

Currencies: DKK, SEK, EUR

Speed: instant

Use case: instant payments in Europe

National payment solution

Currencies: DKK, SEK

Speed: varies

Use case: domestic payments

Zento’s local currency offerings

A business account in Danish kroner (DKK) is essential for companies operating in Denmark. Whether a startup, established company, or e-commerce platform, having a flexible, cost-effective, and efficient solution is crucial.

With Zento, businesses in Denmark gain access to an innovative platform that provides access to a local account with all necessary features, making payments and liquidity management seamless and efficient.

Why choose a local DKK account via Zento?

A business account in Danish kroner (DKK) offers multiple advantages, including lower transaction costs, faster payments, and easier compliance with Danish regulations. With Zento.app, businesses can access a fully functional business account without the typical challenges of opening an account with a traditional financial institution.

Advantages of a Zento product:

No Hidden Fees:Zento offers transparent pricing, so businesses only pay for the services they need, ensuring full cost control.

Fast Payments:A local DKK account allows businesses to send and receive payments quickly and efficiently through Denmark’s payment networks, reducing delays and improving cash flow.

Integration with Accounting Systems:Zento supports integration with leading Danish accounting software, such as e-conomic and Dinero, simplifying bookkeeping and saving time.

Support for NemKonto:Businesses can link their accounts to NemKonto, ensuring easy and efficient handling of public payments.

Multi-Currency Accounts:In addition to DKK, businesses can open accounts in EUR and SEK, making it an ideal solution for companies with international transactions.

Secure and Regulated Payment Infrastructure

Zento and its partner B4B Payments comply with EU regulations, ensuring high security for all transactions. With the integration of TIPS (TARGET Instant Payment Settlement) and TARGET Services into Denmark’s payment infrastructure in April 2025, payments in DKK will become faster and more efficient than ever before.

For businesses looking for a seamless, cost-effective, and flexible solution for local payments in Denmark, Zento is the ideal choice. The digital platform makes it easy to manage corporate finances, reduce costs, and take advantage of cutting-edge payment solutions.

Apply for your account via Zento today and experience the future of payments!