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Denmark Cards and Payments – Opportunities and Risks to 2025

The annual value of card transactions in Denmark was $104.62 billion in 2021. The market is projected to grow at a CAGR of more than 7% during the forecast period. Consumers are shifting from cash-based payments to digital payment tools, particularly non-contact tools, with the use of contactless cards as well as mobile wallets like MobilePay, Apple Pay, and Google Pay set to rise further.

The Denmark cards and payments market report analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period. It also offers information on the country’s competitive landscape, including market shares of issuers and schemes.

The report brings together GlobalData’s research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers detailed regulatory policies and recent changes in regulatory structure.

Overview of the Denmark cards and payments market

Overview of the Denmark cards and payments market

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What are the market dynamics in the cards and payments market in Denmark?

The Danish cards and payments industry is well developed, with Danes being prolific users of payment cards. Consequently, the share of cash within total payment volume has been consistently declining. Growing acceptance of payment cards by retailers and the advent of contactless technology have resulted in accelerated use of electronic payments. Apart from cards, Danish consumers also widely use mobile wallets for payments. MobilePay is the most popular mobile wallet brand in Denmark, while international brands such as Apple Pay and Google Pay also have a presence in the market. Amid the COVID-19 pandemic, the payment market is undergoing a major change and Danish consumers are increasingly opting for payment options such as contactless, further reducing the use of cash.

What are the key segments in the cards and payments market in Denmark?

The key segments in cards and payments market in Denmark include card-based payments, merchant acquiring, e-commerce payments, buy now pay later payments, mobile payments, P2P payments, bill payments, and alternative payments.

Card-based payments in Denmark cards and payment market

Denmark is a card-dominated society, with cards accounting for over half of overall payment transaction volume in 2021. Danish consumers are avid users of payment cards. With a 100% banked population, growing adoption of contactless payments, and increasing digitalization of payments, electronic payments are anticipated to further displace cash transactions over the coming years. In addition, the rising number of mobile wallets, digital-only banks, and the growing ecommerce market are further expected to support Danish payment card market growth over the forecast period.

Debit cards are the preferred card type for payments. Key drivers of growth have been developments in the digital banking space, the growing preference for contactless payments, and high awareness and acceptance of debit cards. On the other hand, credit cards are less frequently used compared to debit cards.

Merchant acquiring in Denmark cards and payment market

Consumers in Denmark traditionally spend the most on essential services such as housing and utilities as well as health. To promote the country’s housing market, banks are providing mortgage loans at low interest rates. In August 2019, Jyske Bank launched the world’s first negative interest rate on housing loans. Negative interest rates effectively mean a bank pays a borrower to take money out, so the individual pays back less than they have been loaned. This helped drive demand for housing, which in turn boosted related services such as electricity, water, and gas.

Ecommerce payments in Denmark cards and payment market

To capitalize on the growing ecommerce space, new online platforms are being launched in Denmark. In November 2021, Klarna launched its all-in-one ecommerce platform in 17 countries, including Denmark. Customers using the app can choose Klarna’s interest-free installment payment option at all online shops, even if the merchant is not a direct partner of Klarna. Online shopping events such as Black Friday and Cyber Monday have also supported the growth of ecommerce market in Denmark, while retailers offer various discounts to entice customers.

Buy now pay later payments in Denmark cards and payment market

BNPL is gaining popularity in Denmark, with several payment providers now operating in this space. Credit offered by banks is the leading BNPL payment method when paying in-store, while retailer credit leads online purchases. Swedish, BNPL provider Klarna operates in Denmark. Klarna offers three payment options: pay now, pay later (allowing users to repay within 14 days), and financing (allowing users to make monthly payments across up to 36 months).

Mobile payments in Denmark cards and payment market

Cards remain the preferred payment instrument in Denmark, with mobile wallet adoption relatively low. However, the country’s high banked population and smartphone penetration, the availability of various mobile wallet brands, and growing merchant acceptance all help increase the number of mobile wallet users. COVID-19 has also supported the uptake of mobile wallets amid the rising preference for digital and contactless payments.

P2P payments in Denmark cards and payment market

MobilePay is the favored tool for both domestic and international P2P transfers in Denmark. It was launched in 2013, originally as a P2P transfer service. PayPal is also popular for international P2P payments, placing second behind MobilePay.

Bill payments in Denmark cards and payment market

Direct debits (also known as Betalingsservice) are the most popular payment option for bills, followed by bank transfers. Direct debits enable merchants to automatically collect Danish krone-denominated payments from their customers. Betalingsservice is owned by Mastercard and managed by Nets. To use the app, individuals need a Danish bank account with a connection agreement to Betalingsservice and NemID. Users can scan the QR code or optical character recognition line on a bill to make a payment.

Alternative payments in Denmark cards and payment market

MobilePay is a popular mobile payment solution. Launched as a money transfer app by Danske Bank in 2013, it was later extended to include online, in-app, and in-store payments. Apple Pay was launched in Denmark in October 2017. It is a mobile payment solution that enables users to make contactless in-store, in-app, and online payments. Google Pay was launched in Denmark in October 2018. The solution enables users to make contactless in-store, in-app, and online payments by adding their payment cards to the wallet.

Denmark cards and payments market, by segment

Denmark cards and payments market, by segment

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Which are the key companies in the Denmark cards and payments market?

Danske Bank, Nordea, Jyske Bank, Sydbank, Arbejdernes Landsbank, Nykredit, SEB, Valitor, Nets, Nexi, MobilePay, Apple Pay, Google Pay, PayPal, Klarna, Trusty, Paysafecard, Dankort, Visa, and Mastercard are the key companies in the cards and payments market in Denmark.

Denmark cards and payments market, by key companies

Denmark cards and payments market, by key companies

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Market report scope

Market size 2020  $104.62 billion
CAGR >7 %
Forecast period 2021-2025
Key Segments Card Based Payments, Merchant Acquiring, Ecommerce Payments, Buy Now Pay Later Payments, Mobile Payments, P2P payments, Bill Payments, and Alternative Payments
Key companies Danske Bank, Nordea, Jyske Bank, Sydbank, Arbejdernes Landsbank, Nykredit, SEB, Valitor, Nets, Nexi, MobilePay, Apple Pay, Google Pay, PayPal, Klarna, Trusty, Paysafecard, Dankort, Visa, and Mastercard

Scope

This report provides top-level market analysis, information and insights into the Danish cards and payments industry, including

  • 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 cash, cards, direct debits, and credit transfers. It also, includes an overview of the country’s key alternative payment instruments.
  • Ecommerce market analysis.
  • 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.
  • Comprehensive analysis of consumer attitudes and buying preferences for cards.
  • The competitive landscape of the Danish cards and payments industry.

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.

Key Players

Danske Bank

Nordea

Jyske Bank

Sydbank

Arbejdernes Landsbank

Nykredit

SEB

Valitor

Nets

Nexi

MobilePay

Apple Pay

Google Pay

PayPal

Klarna

Trusty

paysafecard

Dankort

Visa

Mastercard

Table of Contents

Table of Contents

Market Overview

Payment Instruments

Card-Based Payments

Merchant Acquiring

Ecommerce Payments

Buy Now Pay Later

Mobile Payments

P2P Payments

Bill Payments

Alternative Payments

Payment Innovations

Job Analysis

Payment Infrastructure and Regulation

Appendix

Frequently Asked Questions

The cards and payments market size in Denmark was valued at $104.62 billion 2021.

 

 

 

The Danish cards and payments market is projected to grow at a CAGR of more than 7% during the forecast period.

The key segments in the Denmark cards and payments market include card-based payments, merchant acquiring, e-commerce payments, buy now pay later payments, mobile payments, P2P payments, bill payments, and alternative payments.

Danske Bank, Nordea, Jyske Bank, Sydbank, Arbejdernes Landsbank, Nykredit, SEB, Valitor, Nets, Nexi, MobilePay, Apple Pay, Google Pay, PayPal, Klarna, Trusty, Paysafecard, Dankort, Visa, and Mastercard are the key companies in the Denmark cards and payments market.

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