Consumer Payments Country Snapshot: Denmark 2016
Denmark is increasing its efforts to become a cashless society, backed by government support in promoting electronic payments. Danish consumers are very comfortable with payment cards and mobile phones, with Dankort the most commonly used card scheme in the country and MobilePay leading the way in peer-to-peer (P2P) payments. In spite of mobile proximity and contactless payments remaining underdeveloped, there is opportunity for providers to emphasize relevant use cases and advantages over traditional payment tools in order to boost interest and gain significant adoption among mass consumers.
While credit cards account for 19% of cards in issue, they are used more than seven times less frequently at the point of sale (POS) than debit cards. Considering the limited growth forecast for credit cards, providers should aim to increase revenues by encouraging more consumers to obtain credit cards. Additionally, providers should also continue to invest in bank branches since they are the key acquisition channel in Denmark, with over a third of credit card holders applying for their credit card at a bank branch.
As Danish consumers become increasingly comfortable with online commerce, this channel will report significant growth over 2015-20. While 21% of the number of transactions and 31% of the value of transactions are currently made using debit cards, opportunities still exist for mobile payment providers. They should promote products that are convenient and comfortable to use, as these are the features most valued by Danish consumers using debit cards online.
The share of Danish consumers who do not have a contactless card and do not want one remained consistent from 2014 to 2015, while the share of consumers who do not have a contactless card but would like one decreased, showing that interest is the main issue hindering adoption. With more than 50% of consumers preoccupied by unauthorized use of their contactless cards, providers should include and highlight security features in their value propositions in order to improve card holders’ attitudes, while increasing marketing at the POS.
The report Consumer Payments Country Snapshot: Denmark 2016 provides a comprehensive analysis of consumer sentiments towards various payment tools in the Danish market and use this knowledge to inform product design. Moreover, this report helps to understand the key facts and figures in the consumer payments market in Denmark find out what products the major competitors are launching in the market and plan your strategy accordingly and Learn about the key regulatory requirements affecting Danish payments players and any recent or upcoming changes to those requirements.
Companies mentioned in this report: Dankort, Mastercard, Visa, Danske Bank, Nordea, Nykredit, Sydbank, Rejsekort, Jyske Bank, PayPal, Swedbank, Nets, Handelsbanken, JCB, Verifone, Apple, Samsung, HTC, Sony, Saxo, Elgiganten, Amazon, Zalando, and CDON.
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