Danish payment infrastructure ready for fintech startups

Bo Nilsson, CEO, Nets
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Kære læser. Artiklen her er en del af det engelske magasin Copenhagen Fintech. Indholdet er udformet på engelsk, da det også henvender sig til en udenlandsk læserskare, som deltager på eventen Money2020, hvor Berlingske Media er mediapartner. Magasinet er udformet af Berlingske Medias kommercielle redaktion i samarbejde med Copenhagen Fintech. God læselyst.

Sponsored by Nets

The infrastructure is ready for the next generation of payment apps and innovative solutions, says Nets CEO, Bo Nilsson, inviting fintech startups inside.

Entrepreneurs who are passionate about financial technology now have a chance to work with the backbone of Danish payment systems.

“We see a role for Nets in establishing partnerships with startups that want to use our payment infrastructure,” Nilsson says.

Nets is a leading provider of payment services in the Nordics, connecting banks, businesses and consumers. It’s mostly invisible to the general public, while being the enabling force behind most card transactions provided by Dankort, the direct debit service (Betalingsservice) and NemID, the national login solution − to name a few Danish finance-related services. It handles 98% of all digital payment transactions in Danish stores − a task that requires continuous innovation.

In the last couple of years, Nets started forming partnerships, acquiring startup companies and holding hackathons to come up with new ideas. In just two years, Nets has acquired seven other companies and is currently looking at 80 other fintech-related firms for potential partnerships.

Nets invites startups to innovation lab
Digital receipts are a recent example of how the experience around payments is changing. Instead of a paper receipt, you get a virtual copy on your phone. The startup behind this innovation, Storebox, was acquired by Nets in late 2015, making it even easier to roll out the service throughout the Nordics.

“Fintech startups have an innovative force that benefits Nets. At the same time, they need us to scale their solutions, and maybe grow internationally. That’s why we are now focusing more on partnerships to create innovation,” Nilsson says.

Another similar example is Nets’ partnership with Danish blockchain startup Chainalysis. It helps Nets and its customers to make sure that new types of blockchain-based payments comply with legislation and aren’t being used for criminal purposes.

In the same field, Nets has also partnered with Danish bitcoin company Coinify. Together they have established the Blockchain Development Lab, where Coinify develops new blockchain solutions for Nets.

This way of working with startups is now becoming a recipe for future partnerships. Each new startup is invited to Nets Innovation Lab to make a proof of concept and test if their idea has commercial potential.

“The startups go through a process where they ultimately get access to our extensive payments infrastructure,” Nilsson explains.

Denmark is an ideal test bed
There are several reasons why Denmark and the Nordics provide a particularly good place to test out new fintech ideas. For one thing, the countries are absolute frontrunners in digitizing everything from payments to the identities of citizens. Combined, the Nordics have the highest number of card payments and lowest number of cash payments per capita in all of EU.

Especially if you include NemID, this makes for a large market to test out new digital payment solutions.

“There’s room for growth within fintech if you are looking at payments. The Nordic payments infrastructure is state of the art and we support a wide range of new types of payments,” Nilsson says, adding:

“As a fintech startup, you’ll be able to get started quickly.”


This article is part of the commercial publication 'Copenhagen Fintech'. Click here to view all articles