Market Size of Finland Payments Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 4.67 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Finland Payments Market Analysis
The Finland Payments Market is expected to grow at a CAGR of 4.67% during the forecast period of 2022-2027. The ongoing growth of real-time payments and the Government's efforts to encourage digitalization are expected to drive market growth.
- According to Global Payment Report, Europe's e-commerce market accounted for 11% growth in 2021 and is expected to grow at a CAGR of 11% by 2025. Digital wallets accounted for 26.7% of the payment methods, whereas credit cards accounted for 24.7%. The Buy Now Pays Later services growth drives the Finland payments market, where BNPL accounted for 12.8% of the total e-commerce share.
- The increasing internet penetration and an increase in the E-commerce sector are driving the Finland payment market. The Government is taking several initiatives to bolster digitalization in the country. For instance, the Government has launched a digital economy transformation project to become an international pioneer in the digital economy by 2030. European Union has provided a loan of EUR 723.8 billion to boost the digital-related investment projects in Finland from 2021 to 2024.
- Furthermore, the country focuses on collaborations with international players to develop 6G. For instance, in January 2022, Finland's University of Oulu partnered with Jio Estonia to explore digital opportunities in 6G. 6G will enable greater speed, lower latency, and greater capacity for data networks.
- Innovative digital payment solutions are making their way into the Finland payments market. Driven predominantly by the rising use of smartphones and the emergence of digital wallet payment options such as PayPal and Buy Now Pay Later services, it emerged as the newest number one trend for online payments in Finland.
- 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 settlements. These shifts have offered new opportunities for Finland payment providers.
Finland Payments Industry Segmentation
Finland Payments Market is segmented by Mode of Payments (Point of Sale (Card Payments (Debit card, Credit card, Bank Financing Prepaid Card), Digital Wallet, Cash)), Online Sale (Card Payments (Debit card, Credit card, Bank Financing Prepaid Card), Digital Wallet), by End-user Industry (Retail, Entertainment, Healthcare, Hospitality).
E-commerce payments include online purchases of goods and services such as 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).
| By Mode of Payment | ||||||
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| By End-user Industry | |
| Retail | |
| Entertainment | |
| Healthcare | |
| Hospitality | |
| Other End-user Industries |
Finland Payments Market Size Summary
The Finland payments market is experiencing a dynamic transformation driven by the rapid adoption of digital payment solutions and government initiatives to promote digitalization. The increasing penetration of the internet and the burgeoning e-commerce sector are key factors propelling market growth. The government's digital economy transformation project, supported by significant European Union investments, aims to position Finland as a leader in the digital economy by 2030. This initiative, coupled with collaborations on advanced technologies like 6G, underscores the country's commitment to enhancing its digital infrastructure. The shift towards innovative payment methods, such as digital wallets and Buy Now Pay Later services, is reshaping consumer behavior, with a notable decline in cash transactions and a rise in online payment solutions. The COVID-19 pandemic has further accelerated these trends, creating new opportunities for payment providers to cater to the evolving needs of consumers.
The retail sector in Finland presents substantial opportunities for payment providers, driven by changing consumer spending patterns and the increasing adoption of mobile and contactless payments. Strategic partnerships and investments in logistics and technology are enhancing the payment landscape, with companies like Paysafe and Huawei collaborating to offer alternative payment methods. The market is characterized by a high level of competition and fragmentation, with numerous players striving to expand their presence and service offerings. Mergers and acquisitions, such as the consolidation of mobile payment providers and the acquisition of Checkout Finland by Paytrail, are indicative of the competitive dynamics at play. As digital wallets and instant payment solutions gain traction, the Finland payments market is poised for continued growth, supported by both consumer demand and strategic industry developments.
Finland 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 Force 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 Finland
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1.5 Impact of COVID-19 on the payments market in the country
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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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Finland Payments Market Size FAQs
What is the current Finland Payments Market size?
The Finland Payments Market is projected to register a CAGR of 4.67% during the forecast period (2024-2029)
Who are the key players in Finland Payments Market?
2Checkout (Verifone), S-Pankki, Nordea Bank, Danske Bank and OP Financial Group are the major companies operating in the Finland Payments Market.
