P27 merger approval: ‘We’ve proved that we’re here to stay’
With a key regulatory approval finally in place, P27 can now move ahead with a number of concrete steps to bring services to the market.
Over the summer, the European Commission notified P27 the company had secured approval for its planned merger with legacy Swedish payments provider Bankgirot.
The July 9th announcement and subsequent merger filing on July 22nd brought to a close an important, years-long process that CEO Lars Sjögren admits took longer than expected.
“We had to demonstrate that P27 would indeed provide benefits to the entire financial sector, corporates, fintechs, and society as a whole,” he explains.
“And, as we had hoped and expected, the Commission ultimately concluded that P27 will be value-creating.”
As part of the process, the Commission consulted with dozens of industry stakeholders like banks and fintechs to hear their thoughts about P27. The overwhelming majority, says Sjögren, were positive.
“This is great indirect feedback from the market that P27 is something they want to have in place as soon as possible,” he adds.
According to Sjögren, the merger approval milestone is important for two primary reasons. Firstly, it means P27 can begin to move forward with the migration and integration of Bankgirot – a key component in the creation of a new pan-Nordic payment platform.
“We can now finally start to talk to our colleagues at Bankgirot about how we are going to build for the future and expand across the Nordics,” he says.
Secondly, the approval allows P27 to start signing agreements with clients and bringing products to the Nordic market.
Now Sjögren and his colleagues can start taking “concrete steps forward” toward launching the new payments platform and the services that it will enable.
In Sweden, this means accelerating the transformation plan already in place with the Swedish Bankers Association. In Denmark, P27 can proceed with establishing a transformation and migration programme.
“The merger removes the cloud of uncertainty that has previously put a number of important processes on hold,” says Sjögren.
“From the perspective of the market, this is one of the absolutely most important milestones we have reached. We’ve proved to the world that we are here to stay.”