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Payset Brings Back Danish IBANs!

News and announcements

May 1, 2025

4 min. read

James Irwin

Author

Payset has reintroduced support for Danish IBANs, giving clients the ability to freely transact with entities in Denmark and avoid the all-too-common IBAN discrimination in the country. Here’s how you can benefit.

If you reside in or transact with Denmark, a Danish IBAN isn’t just an option — it’s often a must-have financial tool.

Trying to send funds to and from Denmark without a local account can be difficult. You might encounter obstacles like preferences for local IBAN accounts, perceived risk around foreign IBANs, and often outright IBAN discrimination.

For these reasons, Payset’s reissue of Danish IBAN is huge news for our many clients who do business in Denmark.

Does Denmark Discriminate IBANs?

Under EU rules, companies and institutions in one member country are supposed to support payments from IBANs in any other member country.

But in reality, that isn’t the case, and IBAN discrimination is widespread.

Over a 31-month period, consumers reported about 3,500 cases of EU-wide IBAN discrimination via the “Accept My IBAN” platform.

The survey found that France and Spain accounted for over half of complaints. However, as many Danish small-medium-sized business owners know, IBAN discrimination is rampant in Denmark.

We’ve identified four common causes of IBAN discrimination in Denmark:

A preference for Danish IBANs (for instance, by employers who insist employees have a DK IBAN for salary payments)
NemKonto system limitations (for instance, many foreign IBAN users report issues receiving government-related payments like social benefits, tax refunds, etc.)
Legacy banking and technical restrictions (for instance, many companies only recognize DK IBANs because they haven’t been updated for SEPA compliance)
Perceived risk and compliance concerns (for instance, a Danish landlord may refuse payments from a non-DK IBAN assuming its riskier)

Who’s Affected By IBAN Discrimination?

Anyone can be impacted by IBAN discrimination. That includes:

Payroll departments: Companies that pay foreign workers may find it difficult to pay workers who don’t have a Danish IBAN.

Salary recipients: People who work remotely for Danish companies may have trouble receiving payments such as salary, wages, and invoices.

Fintech account users: Even Danish locals may find their payments blocked if they rely on fintech services like Revolut, Wise, and N26, which don’t necessarily provide an IBAN tied to Denmark.
Small businesses: Businesses that partially operate in Denmark can face issues if their financial accounts are based elsewhere in the EU.
Renters: Landlords can refuse payments from non-Danish IBANs, posing issues for travellers and new residents of Denmark.

Government payment recipients: Individuals expecting tax rebates and other government benefits through systems like NemKonto might find themselves unable to receive payments without a Danish IBAN.

Why Does IBAN Discrimination Occur?

Danish companies and institutions can discriminate against non-DK IBANs for various reasons.

It’s not necessarily due to hostility toward foreign accounts. Some entities simply aim to minimize compliance and fraud risk by selectively supporting IBANs.

Sometimes, it isn’t even intentional. Organizations might not know that they can transact with foreign IBANs, or they incorrectly believe they can’t transact.

Technical limitations are another issue. Danish companies and organizations may need to upgrade outdated systems before they start transacting with IBAN accounts on a global scale. Even some nationwide payment systems, such as NemKonto, are tightly linked to Denmark’s banking system.

Finally, enforcement is lax. Customers who experience IBAN discrimination should file a report, but rules are not always enforced and may carry little weight.

In the end, there’s no good reason for discrimination. But you can make sure it’s not an issue for you by obtaining a Danish IBAN — allowing you to take advantage of most of the country’s local payment systems.

Payset Provides Access to Local Payments in Denmark

A Danish IBAN from Payset gives you an easy way to transact in Danish krone (DKK).

It can also help you access these payment systems:

SWIFT: The world’s largest international bank messaging network.
Intradag: Denmark’s same-day settlement system.
Kronos2: The Danish interbank retail payment system.
NemKonto: Denmark’s public payment system for government transfers.

Direct access to each network varies depending on the payment service that you choose. Contact your payment service provider for details.

How Local IBANs Benefit You

Get paid without restrictions: A Danish IBAN can prevent payments from an employer, client, or business partner from being blocked.
Pay your employees: Make sure that your contractors, freelancers, and foreign employees get paid no matter where they are.
Build trust: Guarantee your customers and partners that you can work in Denmark — and back your promise with reliable payments.
Get access to local services: Access banking services, online services, and government services that you’re otherwise eligible for.
Cheaper, faster payments: Enjoy rapid transaction speeds and low fees when transacting the Danish krone (DKK) and other supported currencies.

If you would like to benefit from a Danish IBAN from Payset, get in touch and a member of our team will assist you.

A UK multi-currency account can streamline how you manage your finances. Whether for business or personal use, a multi-currency account provides you with added freedom and flexibility and removes barriers to payments and transfer methods.

Here is everything you need to know about UK multi-currency accounts.

A Payset UK multi-currency account is a single account with which you can hold, send, and receive funds in up to 38 currencies. This allows business or personal account holders to save endless time and money on foreign exchange, and money transfers, which from a traditional bank account would be far more expensive and slow.

From your personal UK-based IBAN account, you can transfer money to bank accounts around the world as well as send and receive free and instant transfers to and from other Payset clients. You can send funds using a diverse network of payment networks, including SWIFT, SEPA, Target2, Faster Payments, CHAPS, and more.

When you exchange funds from one currency to another, there are no margins added to our exchange rates and the fees are clearly displayed before you click send. If you, for example, work with multiple currencies, make purchases in other countries, travel frequently, invest in foreign currencies, pay staff in other countries, or receive payments in other currencies, a multi-currency account can save you time, money, and work compared to a traditional bank account.

There are lots of banking institutions and financial services that will aid you in opening a multi-currency account. Often they can allow you to convert and transfer a considerable number of currencies.

Before you open a UK multi-currency account with any platform or service, make sure you have explored all of the different options available to you and have found the best type of account to suit your financial needs.

How Does a UK Multi-Currency Account Work?

A UK multi-currency account works in the same way as a standard bank account or electronic wallet. Although the services provided will change depending on where you choose to open your account and who you choose to open the account with, all multi-currency accounts should allow you to:

Withdraw money

Send and receive payments in multiple currencies internationally

Access your funds for electronic transfers

Earn interest on your account total

In the same way that fees can occur with a standard bank account you may run into additional charges with a UK multi-currency account.

You could be charged for a number of actions including; making withdrawals, account opening and closure fees, transfer fees, and more.

The frequency or amount of these charges will often vary and if you ask your banking agency they will usually be able to tell you exactly how much you will be charged and which services you will be charged for before you open your account.

Alternative Options to Consider Before Opening a UK Multi-Currency Account

There are many alternatives to opening a UK multi-currency account. For example, there are also money transfer services and online electronic wallets such as Payset that allow you to send your money in over 34 currencies without the need for a UK multi-currency account. You can start sending money across the globe or in person today using your existing bank account.

Frequently asked questions

What is a UK multi-currency account/IBAN?

Are there limits to the amount of money I can send and receive with a UK multi currency account?

Which currencies can I send and receive in my UK multi currency account?

How do I add money to my UK multi currency account?

Types of UK Multi-Currency Accounts

Multi-currency IBAN accounts
Personal multi-currency accounts
Multi-currency accounts for business
Multi-currency cash passports
Multi-currency wallets

Information contained in this publication is provided for general education and information purposes only and should not be construed as legal, tax, investment or other professional advice or recommendation, or an offer of, or solicitation for, any transactions or any other actions (or refraining therefrom); This material has been prepared without taking into account any particular recipient’s financial objectives or situation. We make no warranty, guarantee or representation, whether express or implied, as to the completeness or accuracy of the information contained herein or fitness thereof for a particular purpose; Use of images and symbols is made for illustrative purposes only and does not constitute a recommendation or advice to take or refraining from any action; Use of brand logos does not necessarily imply a contractual relationship between us and the entities owning the logos, nor does it represent an endorsement of any such entity by Pay Set Limited, or vice versa; Market information is made available to you only as a service, and we do not endorse or approve it; Any reference to past performance, predicted returns, or likelihood performance scenarios may not reflect actual future performance and certainly do not guarantee future outcomes.