Payments Landscape in Denmark: Opportunities and Risks to 2021
Danish cards and payments industry is well-developed, and its consumers are prolific users of payment cards. The country has the highest frequency of use in the world, with 210 transactions per card in 2017. As cash use continues to decline, Denmark is increasing its efforts to become a cashless society, backed by government support 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 the peer-to-peer (P2P) payment space.
E-commerce posted a review-period compound annual growth rate (CAGR) of over 15% to reach over DKK115bn (about US$16.3bn) in 2017. According to PostNord’s E-Commerce in the Nordics report, Denmark has the third-highest percentage of online shoppers in the Nordic region, with over 60% of consumers shopping online at least once a month in 2016. Payment cards and bank transfers remain the preferred payment methods, accounting for about 75% of e-commerce transaction value in 2017. Digital and mobile wallets account for nearly 20%.
Contactless payments are gradually growing in Denmark. The first contactless Dankort was launched in Denmark in 2015. By the end of 2016, more than half of all issued Dankort cards had a contactless feature, and contactless payments accounted for more than 15% of all Dankort payments according to the central bank. Payment providers need to educate consumers on the benefits and advantages of contactless payments, stressing the technology’s ease of use and convenience compared to PIN-based cards.
Dankort is the national debit card scheme, accounting for more than 75% of total debit card transaction value in 2017. Dankort operates under a zero interchange fee model, and has dominated the market since its introduction in 1983. Mastercard and Visa are also strengthening their presence in the country. To facilitate international payments using Dankort cards, banks offer the Visa/Dankort co-badged card, which is used as a Dankort card in Denmark and as an international Visa card outside the country.
The report Payments Landscape in Denmark: Opportunities and Risks to 2021, provide top-level market analysis, information and insights into the Danish cards and payments industry.
In particular, this report provides the following analysis -
Current and forecast values for each market in the Danish cards and payments industry, including debit, and credit cards.
Detailed insights into payment instruments including credit transfers, cheques, cash, direct debit, and payment cards. It also, includes an overview of the country's key alternative payment instruments.
E-commerce market analysis and payment methods.
Analysis of various market drivers and regulations governing the Danish cards and payments industry.
Detailed analysis of strategies adopted by banks and other institutions to market debit, and credit cards.
Companies mentioned in this report: Danske Bank, Nordea, Jyske Bank, Sydbank, ArbejdernesLandsbank, Nykredit, SEB, Alm. Brand Bank, BankNordik, Basisbank, The Jutland Sparekasse, Djurslands Bank, Spar Nord Bank, Vestjysk Bank, Møns Bank, Dankort, Visa, Mastercard, and Diners Club
To capitalize on the growing preference for alternative payments, in February 2017 Bokis (a collective of 62 Danish banks) launched a digital wallet supporting payments with Mastercard and Visa international debit and credit cards, which was extended to Dankort customers one month later. The Bokis member banks includes local banks, savings banks, and co-operative banks in Denmark, along with four national banks: Sydbank, Spar Nord Bank, Arbejdernes Landsbank, and Nykredit. The NFC mobile wallet uses Nets’ host card emulation technology and tokenization to ensure secure contactless mobile transactions. The mobile wallet is compatible with both Android and iPhone devices. More recently, in October 2017 Apple introduced Apple Pay in Denmark, supported by Jyske Bank (Visa debit cards only) and Nordea.
Contactless payments are gradually gaining traction in Denmark. Danske Bank and Jyske Bank began offering contactless Dankort cards from August 2015. Contactless mobile payments are also expected to gain prominence. Nets entered into an agreement with JCB in April 2016 to allow merchants to accept Dankort debit card payments via smartphones using J/Speedy, JCB's contactless technology. J/Speedy can be used to make contactless payments of up to DKK200 ($28.30), with a security code required for transactions above this amount. Following the agreement, the contactless technology was officially launched in Denmark in November 2017.
In 2016, a statutory provision mandated that all Danish consumers must have access to payments using payment cards, including online payments. This is part of the Payment Accounts Act, based on EU Directive 2014/92/EU(PAD). An earlier regulation stipulated that banks in Denmark should give retail consumers access to making payments using a debit card with balance controls.
Reasons to buy
Make strategic business decisions, using top-level historic and forecast market data, related to the Danish cards and payments industry and each market within it.
Understand the key market trends and growth opportunities in the Danish cards and payments industry.
Assess the competitive dynamics in the Danish cards and payments industry.
Gain insights into marketing strategies used for various card types in Denmark.
Gain insights into key regulations governing the Danish cards and payments industry.