Market Size of Denmark Payments Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2019 - 2022 |
CAGR | > 7.50 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Denmark Payments Market Analysis
The Denmark payments market is expected to register a CAGR of more than 7.5% from 2022 to 2027. The primary factor driving the market's growth in the region is the strong growth in E-commerce and an increased inclination toward using digital payment tools, particularly non-contact tools.
The Danish payments infrastructure is a network of technologies that allows individuals, businesses, and financial institutions to exchange payments and securities transactions. On an ordinary banking day, payments worth KR 640 billion are cleared and paid through the Danish financial infrastructure's key IT systems.
Denmark has an intelligent economy at the forefront of numerous cutting-edge payment programs, including P27, which will facilitate instant payments for all residents and organizations in the countries of Denmark, Finland, and Sweden.
The Danish e-commerce market is booming. According to the International Trade Administration, Denmark is the 29th largest market for eCommerce, with a revenue of USD 6 billion in 2020. The e-commerce market in the country has improved due to the increase in mobile commerce, extended pickup options, and optimization of processes by big data analytics.
Further, digital-only banks are entering the danish banking market. For instance, companies such as Lunar, Revolut, and many more, which operate only through online applications, are serving the population in the country. The domestic mobile-only bank Lunar Bank is the largest digital-only bank in Denmark. The bank serves 400,000 consumers across the Nordic markets.
Furthermore, the Covid-19 epidemic has supported a significant shift in payment practice, such as a decrease in cash payments, a move from in-store to online payment methods, and the adoption of quick payments. These shifts have offered new opportunities for Danish payment providers.
Denmark Payments Industry Segmentation
The Denmark Payments Market is segmented by Mode of Payment (Point of Sale (Card Payments, Digital Wallet, Cash), Online Sale (Card Payments, Digital Wallet)), and by End-user Industries (Retail, Entertainment, Healthcare, Hospitality). E-commerce payments include online purchases of goods and services such as purchases made on e-commerce websites and online booking of travel and accommodation. The market scope excludes online purchases of motor vehicles, real estate, utility bill payments (such as water, heating, and electricity), mortgage payments, loans, credit card bills, or purchases of shares and bonds. As for Point-of-Sale, all transactions that occur at the physical point of sale are included in the scope of the market. It includes traditional in-store transactions and all face-to-face transactions regardless of the location of the transaction. Cash is also considered for both cases (cash-on-delivery for e-commerce sales).
The study tracks key market metrics, underlying growth influencers, and significant industry vendors, supporting Denmark's market estimates and growth rates throughout the anticipated period. The study looks at COVID-19's overall influence on the Danish payment ecosystem.
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Denmark Payments Market Size Summary
The Denmark payments market is experiencing robust growth, driven by the surge in e-commerce and a shift towards digital payment solutions, particularly contactless options. The country's advanced payments infrastructure supports a high volume of transactions daily, facilitated by innovative programs like P27, which aims to enable instant payments across Denmark, Finland, and Sweden. The rise of digital-only banks, such as Lunar and Revolut, further underscores the shift towards online banking solutions. The COVID-19 pandemic has accelerated this transition, with a notable decrease in cash transactions and a preference for online and quick payment methods. This digital transformation is supported by Denmark's strong physical, digital, and banking infrastructure, which meets consumer expectations for efficient and seamless shopping experiences.
The market is characterized by a competitive landscape with key players like MobilePay A/S, Visa Inc., American Express Company, Mastercard Inc., and PayPal Payments Private Limited, who are actively expanding their offerings and forming strategic partnerships. The adoption of new payment solutions, such as app-based systems like MobilePay, has been facilitated by their ease of use and accessibility, particularly for lower-value transactions. The increasing penetration of online shopping and the willingness to purchase high-value items online have further fueled market growth. Additionally, initiatives like the launch of Amazon in Denmark and the introduction of buy now, pay later services are expected to enhance the B2C e-commerce sector, contributing to the overall expansion of the payments market in the coming years.
Denmark Payments Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Stakeholder Analysis
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1.3 Industry Attractiveness-Porter's Five Forces Analysis
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1.3.1 Bargaining Power of Suppliers
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Threat of New Entrants
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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1.4 Evolution of the payments landscape in Denmark
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1.5 Key market trends pertaining to the growth of cashless transaction in Denmark
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1.6 Impact of COVID-19 on the payments market in Denmark
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2. Market Segmentation
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2.1 By Mode of Payment
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2.1.1 Point of Sale
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2.1.1.1 Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
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2.1.1.2 Digital Wallet (includes Mobile Wallets)
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2.1.1.3 Cash
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2.1.1.4 Others
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2.1.2 Online Sale
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2.1.2.1 Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
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2.1.2.2 Digital Wallet (includes Mobile Wallets)
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2.1.2.3 Others (includes Cash on Delivery, Bank Transfer, and Buy Now, Pay Later)
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2.2 By End-user Industry
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2.2.1 Retail
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2.2.2 Entertainment
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2.2.3 Healthcare
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2.2.4 Hospitality
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2.2.5 Other End-user Industries
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Denmark Payments Market Size FAQs
What is the current Denmark Payments Market size?
The Denmark Payments Market is projected to register a CAGR of greater than 7.5% during the forecast period (2024-2029)
Who are the key players in Denmark Payments Market?
MobilePay A/S, Visa Inc., American Express Company, Mastercard Inc. and PayPal are the major companies operating in the Denmark Payments Market.