Market Trends of Denmark Payments Industry
This section covers the major market trends shaping the Denmark Payments Market according to our research experts:
Retail Industry to Drive Market Growth
The unit costs of debit card payments in Denmark have declined significantly, reflecting the shift from cash to electronic payments, such as debit cards and online payments. Further, the social costs of retail payments relative to GDP in Denmark have declined, which suggests the development of payment methods and the related innovations have made retail payments less costly overall.
Growth in payments is also driven by increasing online shopping penetration and a willingness to spend online on high-value items. The restrictions caused by COVID-19 pushed more consumers to adopt online shopping for essentials. Also, with excellent physical, digital, and banking infrastructure, consumers expect to be able to order and receive their products quickly and easily.
According to the International Trade Administration, the most widely used payment cards with approximately 85 percent of online purchases are Dankort and Visa/Dankort, while MasterCard/Eurocard is used for 10 percent of all purchases. Recently, there has been a quick uptake due to the introduction of app-based payment systems, such as MobilePay.
The launch of Amazon in Denmark will gradually enhance B2C e-commerce in the following years. Further, there are multiple guides aimed at helping independent sellers break into the online market. There are both B2B and B2C service providers with paid services assisting private companies in their pursuit of setting up online and expanding their business in e-commerce.
Significant Growth in Payment is Expected Due to Digital Transformation
The digital transformation in Denmark has been progressing rapidly in recent years. Denmark is currently among the most digitalized countries in the world. Digitalization changes various aspects, such as purchasing and paying for goods.
The proportion of card payments in commerce has increased in recent years. According to a survey by Denmark National Bank, senior citizens have helped drive the trend toward more electronic payments. Moreover, among young citizens of the country, the proportion of card payments in commerce has decreased, and mobile payments have increased.
Further, according to a recent survey by Denmark National Bank, people find new payment solutions such as mobile payments are easy to use, especially for lower-value payments. The increase in the adoption of new payment solutions is due to the advantages such as ease of use, fast payment, and easy access to mobile phones for making payments.
Further, in the country, mobile payments were used for a variety of person-to-person payments such as Gifts, pocket money, and loan repayments. Further, bill sharing option has accounted for a quarter of the person-to-person mobile transactions.
