Payset prespective
July 10, 2024

Opening a USD or Euro Account in Denmark from the UK

It can be difficult to open a USD or Euro account in Denmark from the UK. However, Electronic Money Institutions (EMIs) like Payset provide an easier and more accessible alternative.

Key Takeaways

  • UK-based businesses may have trouble opening a traditional bank account in Denmark due to the latter country’s strict anti-money laundering (AML) regulations 
  • Personal bank accounts in Denmark are usually available only to citizens and residents 
  • Both limitations mean it is easier to open an account with an Electronic Money Institution (EMI) if you reside in the UK or elsewhere
  • EMI accounts let you hold, transact, and trade currency internationally

Can I Open an Account in Denmark from the UK?

If you’re a UK-based business, you might find yourself doing international business with a variety of countries and regions, including Denmark. 

It’s possible for small and medium enterprises (SMEs) in the UK to open an account at one of Denmark’s traditional banks — but it is difficult to do so.

Accessing the Danish banking system is especially challenging because the country tightened its anti-money laundering (AML) regulations following a scandal involving its largest bank, Danske Bank, in 2018. As a result, account applicants must meet particularly strict requirements.

In short, traditional banks in Denmark are not properly serving SMEs, and leave SMEs with very limited options. Fortunately, EMIs like Payset offer a solution. 

Electronic Money Institutions (EMIs) can facilitate transactions with Denmark and the Danish krone (DKR) as well as USD/Euro transfers to/from Denmark.

Comparing Danish Banks and EMIs for USD/Euro Accounts

EMI accounts and traditional bank accounts both allow you to transact currency internationally. However, there are differences that might make one option more appropriate for you.

Traditional bank accounts operate wide networks of brick-and-mortar branches. They typically offer additional services, such as loans and credit, alongside savings accounts and online banking. Some Danish banks also offer foreign currency accounts.

By contrast, EMIs such as Payset typically offer multi-currency accounts and provide support for a broad range of currencies for easy cross-border payments.

Payset offers local Danish IBANs to UK-based businesses in order to facilitate transfers in the Danish krone (DKK) and 24 other currencies, including the US Dollar (USD) and Euro (EUR). We also allow you to swap foreign currencies through our dedicated exchange with real-time rates.

The simplicity of EMI accounts may be preferable, especially if you need a Denmark-focused account and have found it difficult to obtain a bank account in the country. 

Benefits of Using an EMI vs a Bank Account in Denmark

By signing up for an EMI account that supports transactions in Denmark, you’ll receive multiple benefits.

Multi-currency support: Opening an EMI account with Payset allows you to transact and hold various currencies including DKK, EUR, USD, and many others.

Regulatory compliance: EMIs, like banks, must comply with all federal laws and regulations. Payset is an authorized EMI in the UK and is able to facilitate international transfers for UK clients to regions around the world, including Denmark. 

Competitive exchange rates: EMIs provide competitive and affordable exchange rates in various ways. At Payset, we quote real-time conversion rates prior to your transaction, which guarantees that you receive the best exchange rate available.

Rapid account setup: You can sign up quickly for EMI services, and you can usually complete the entire process online. By comparison, if you intend to obtain a Denmark bank account, you might need to attend the bank in person to complete the registration process and, as mentioned above, you may be restricted from opening an account at all.

Lower fees: EMIs may provide lower transaction fees than banks. EMIs often do not limit maximum transaction amounts and do not require minimum balances.

Global access: EMIs typically serve users around the world in many countries and regions — unlike banks, which mainly serve local and domestic customers.

Eligibility for Denmark EMI Accounts

It’s easy to sign up for an EMI account, but there are a few barriers to entry.

First, your country of residence is important. EMIs serve a broad range of countries but do not serve every location. If you plan to use Payset, contact us or view our sign up page to check your eligibility.

You’ll need to pass know-your-customer and know your business (KYC/KYB) checks whether you use Payset or any other company. During the sign-up process, you’ll be asked to upload documentation to be verified by the EMIs compliance team. Be sure to provide complete and accurate information to ensure that your application process goes smoothly. 

Documentation That You Need

To open an account, you’ll need various documents and pieces of identification. 

Whether you open an EMI or traditional bank account, you’ll need to provide a personal ID card. Usually, you need to provide proof of address too, such as a utility bill or bank statement. 

If you are applying as a business user, you will also need to provide details related to your business operations. At Payset, we may ask for your business type, your business sector and operating regions, estimated monthly turnover, and supporting identity and registration documentation.

For traditional bank accounts, you might also need to provide proof of income. For foreign bank accounts, you might need to provide non-residency information, such as proof of legal residence, home country visa status, and account purpose.

Opening a EUR/USD Account in Denmark

Opening an account almost always involves the same steps.

First, explore and compare different providers and their fees and requirements. After you narrow your options, compare account tiers and choose one that meets your needs.

Once you make a choice, prepare your documentation in line with the service’s requirements and submit an application to the provider. Typically, you can complete the registration process entirely online if you sign up for an EMI account.

The EMI service or bank will verify your documents and perform various checks. Once they approve you as a customer, they will tell you how to access your account. You can contact customer support for more instructions on how to use the service.

Business vs Personal Denmark Accounts

Personal Accounts

Personal accounts are aimed at individuals who need to hold or transact funds. 

Opening a bank account in person in Denmark is usually only possible for citizens and residents. You need to register with Borgerservice, obtain a CPR (Centrale Personregister) number, and give it to the bank alongside other information, including but not limited to your ID.

If you reside in the UK or elsewhere and need to open a USD or Euro account in Denmark, it’s easier to obtain an EMI account with a local IBAN and the ability to transact in DKK, EUR, and USD.

Business Accounts

Business accounts are aimed at companies of all sizes. Using a business account can simplify accounting, tax reporting, and other business operations.

However, opening a business bank account in Denmark as a foreign company can be very difficult due to Denmark’s currently prohibitive money-laundering regulations and other restrictions. 

You can alternatively obtain an EMI account featuring a Danish IBAN and support for DKK, USD, and EUR funds, which will allow you to perform most transactions. You can also combine a Denmark-focused EMI account with a traditional bank account in your region if necessary.

Open a USD or Euro Account in Denmark with Payset 

It’s clear that UK residents and businesses transacting with Denmark stand to benefit from Electronic Money Institution (EMI) accounts given all the new restrictions imposed on Danish banks for international clients. 

EMI accounts allow you to send and receive DKK, Euro, or USD payments easily and at affordable rates. Some individuals and businesses might need a traditional Danish bank account, but EMI accounts are an excellent choice if you cannot access Denmark’s banking system or if you’re simply looking for a convenient international payment option.

At Payset, we offer accounts that meet the needs of almost all Denmark-focused transactions, with local Danish IBAN numbers and support for DKK, USD, and EUR, and other currencies.

You’ll also gain access to our affordable fees and conversion rates alongside all other features. Contact us for more information.

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Frequently asked questions

What is a multi-currency account/virtual IBAN?

A Payset multi-currency account allows you to receive money in 34 different currencies and send money in up to 38 currencies, all within the same account.

You can deposit and withdraw funds, convert currencies at competitive exchange rates, and hold your chosen currencies to capitalize on market movements.

A Payset multi-currency account allows startups and business owners to receive payments from clients virtually anywhere in the world and pay suppliers, staff, and contractors quickly and affordably in their chosen currency.

  • Funds can be deposited and withdrawn from the account for a small fee.
  • Account holders can send and receive money with other Payset users for free.
  • Depending on your region, you can use various payment networks from your Payset account, including SWIFT, SEPA, ACH, Fedwire, Faster Payments, BACS, and CHAPS. 
  • Once you register an account, you will be provided with a Virtual IBAN (International Bank Account Number), which makes all of these transfers easy.
  • We provide you with local payments and collections. For example, transactions in USD, EUR, CAD, and GBP are processed through the local payment networks, which is far cheaper and takes minutes as opposed to days

Are there limits on the amount of money I can send and receive?

No, there are no transaction limits on Payset multi-currency accounts.

However, higher-volume transactions may require additional anti-fraud verification. If you plan to make a large transaction, contact us in advance to avoid verification delays.

How is Payset regulated?

Payset is regulated as an authorized Electronic Money Institution by the UK Financial Conduct Authority. Our activities are also regulated by the Payment Services Regulation 2017 and the Electronic Money Regulation 2011 (SI 2011/99).

How do I send money from my account?

Once you have opened your verified IBAN account and added money to a balance, transferring funds is simple.

Simply log in into your account and add a beneficiary, then simply “make a transfer” in your preferred currency to that beneficiary.

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.

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