Background

In autumn 2024, the Icelandic Treasury (Fjársýslan), in collaboration with the Fintech Cluster, launched a project to simplify the operation and settlement of government procurement cards. The process in need of transformation was inefficient, reliant on paper receipts, subject to bottlenecks around the turn of each month, and involved a significant amount of manual work. For improvements to take effect, the Treasury needed to make changes to the government’s financial system, define new standards for data submission, and lead internal change management so the improvements could take hold in the organisation’s operations.

Preparation

The Treasury, in collaboration with the Fintech Cluster, held an introductory meeting for interested companies in November 2024, where the project was presented and companies were encouraged to participate. Eleven solutions expressed interest in the project, and roughly thirty government institutions offered to take part in testing.

Work then began on defining what information would need to accompany each card transaction in digital form — information previously included with paper receipts — and what technical specifications could be used to submit such data to the Treasury. In collaboration with Standards Iceland (Staðlaráð Íslands) and participating companies, a new standard was developed on which the technical integration of the government’s financial system and fintech solutions will be based going forward.

Implementation

Testing takes place in three phases with defined performance metrics. Meeting the performance metrics by the end of each phase is a prerequisite for a solution’s progression in the process. During the course of the project, the Treasury’s financial system is also being adapted to new standards for the acceptance of accounting data for card transactions and card accounts. While the technical integration of fintech solutions and the Treasury’s financial system is underway, submission of source documents on paper may be required as applicable.

Phase 1: Launch of Testing (commenced February 2026 - closes 30. April 2026)

In the first phase, each fintech solution is connected to users from four government institutions. The objective of this phase is to train cardholders on the solution’s functionality and begin using it, as well as to test the integration of data submissions.

Performance metrics in Phase 1

• Cardholder training

  • All users should have received training on the solution’s functionality.

• Data submission

  • The solution has submitted accounting data for card transactions and the users’ card accounts. Insufficient data submissions are accompanied by an overview of necessary improvements that fintech solutions must address during Phase 2.

• Feedback

  • The Treasury collects feedback from users and companies towards the end of the phase regarding the trial period. The Treasury adjusts the composition of participants in testing as applicable.

Phase 2: Standardisation and Business Model (opens 1 May)

In the second phase, users receive a presentation of the solutions’ business models so that the expected benefits and associated costs of using the solution can be assessed. To achieve progression to Phase 3, the solutions must also fully meet the requirements for technical integration.

Performance metrics in Phase 2

• Business model

  • All users should have received a presentation of the solution’s business model.

• Data submission

  • Submission of accounting data for card transactions and card accounts must fully meet the Treasury’s acceptance criteria.

• Feedback

  • The Treasury collects feedback from users and companies towards the end of the phase regarding the trial period. The Treasury assesses the need to adjust the composition of participants in testing as applicable.

Phase 3: Confirmation of Eligibility (open-ended)

Solutions that meet the performance metrics in Phase 2 receive automatic progression to Phase 3.
The Treasury confirms that solutions in Phase 3 meet the acceptance criteria for accounting data for card transactions and card accounts in the government’s financial system. Government entities that wish to use these solutions to submit accounting data in digital form for card transactions to the government’s financial system are authorised to do so. Government entities will continue to be obligated to retain source documents in paper form while current accounting legislation remains in force.

Follow-up

Following the project, the Treasury will monitor the development of the scope of this new type of service procurement by the public sector and assess the conditions for a formal tender as applicable.

Information

The following are the current versions of the documents on which the project’s progress is based:
Draft standard from Standards Iceland.

See: files on the Icelandic site here, if translation is needed send a inquiry to vidskiptakort@fjs.is.

• Types of transactions and accounts that fintech solutions must submit in accordance with the Treasury’s acceptance criteria in Phases 1 and 2

• Information and examples of posting strings for card transactions

• The Treasury’s acceptance criteria for card transactions and card accounts

• Information on category codes from the government’s financial accounting system

Enquiries about the project are received through the Treasury’s request system at the email address vidskiptakort@fjs.is.