Denmark’s Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape

The card payments channel recorded healthy growth in value and volume terms during the review period. In terms of the number of cards in circulation, the channel increased from 11.7 million cards in 2009 to 13.5 million in 2013, at a review-period CAGR of 3.68%. The debit cards category dominated the channel with the highest channel share of 49.6% in 2013. It also registered the highest review-period CAGR of 5.02%.

In terms of transaction value, the card payments channel posted a review-period CAGR of 6.03%, increasing from DKK347.1 billion (US$64.7 billion) in 2009 to DKK438.7 billion (US$77.7 billion) in 2013. The channel is expected to post a forecast-period CAGR of 3.42%, increasing from DKK459.2 billion (US$82.5 billion) in 2014 to DKK525.4 billion (US$97.1 billion) in 2018.

Mobile payments (m-payments) registered an exponential review-period CAGR of 125.43% and electronic commerce (e-commerce) posted a review-period CAGR of 17.94%. M-commerce and e-commerce are expected to post respective forecast-period CAGRs of 36.32% and 17.39%.

Outbound travel spending among the retail and corporate segments increased during the review period, at a CAGR of 4.73%, and is anticipated to increase further over the forecast period at a CAGR of 4.39%, fuelling the growth of travel cards.

Scope

• This report provides a comprehensive analysis of Denmark's cards and payments industry.

• It provides current values for Denmark's cards and payments industry for 2013, and forecast figures for 2018.

• It details the different economic, infrastructural and business drivers affecting Denmark's cards and payments industry.

• It outlines the current regulatory framework in the industry.

• It details the marketing strategies used by various banks and other institutions.

• It profiles the major banks in Denmark's cards and payments industry.

Key Highlights

• In terms of the number of cards in circulation, the Danish card payments channel posted a review-period CAGR of 3.68%, increasing from 11.7 million cards in 2009 to 13.5 million in 2013. It is expected to post a forecast-period CAGR of 2.16%, to reach 15.1 million cards in 2018.

• In terms of transaction value, the card payments channel posted a review-period CAGR of 6.03%, increasing from DKK347.1 billion (US$64.7 billion) in 2009 to DKK438.7 billion (US$77.7 billion) in 2013. The channel is expected to post a forecast-period CAGR of 3.42%, increasing from DKK459.2 billion (US$82.5 billion) in 2014 to DKK525.4 billion (US$97.1 billion) in 2018.

• The card payments channel was dominated by the debit cards category, which accounted for a 49.6% share in 2013. The second-largest share was held by the prepaid cards category with 37.3%, followed by the credit cards category with 13.2%.

• Owing to low associated costs such as issue fees, maintenance fees and transaction fees, debit cards emerged as a popular means of payment. In terms of the number of cards in circulation, the category recorded a review-period CAGR of 5.02% and is anticipated to register a forecast-period CAGR of 1.93% to reach 7.4 million cards in 2018.

• Owing to high associated costs and frugal consumer spending, the credit cards category declined during the review period at a CAGR of -2.29%. However, with the Danish economy anticipated to recover and disposable income expected to increase, the category is anticipated to register a forecast-period CAGR of 1.58%, to reach 1.9 million cards by 2018.

Reasons to buy

• Make strategic business decisions using top-level historic and forecast market data related to Denmark's cards and payments industry and each market within it.

• Understand the key market trends and growth opportunities within Denmark's cards and payments industry.

• Assess the competitive dynamics in Denmark's cards and payments industry.

• Gain insights in to the marketing strategies used for selling various card types in Denmark.

• Gain insights into key regulations governing Denmark's cards and payments industry.

Companies mentioned

Danske Bank

Sydbank

Nordea Bank

Vestjysk Bank

Spar Nord Bank

Dankort

MasterCard

Visa

Table of Contents

1 Executive Summary

2 Analysis of Market Environment, Key Trends and Drivers

2.1 Payment Infrastructure and Emerging Technologies

2.1.1 Rising internet penetration

2.1.2 Rising mobile penetration and m-payments

2.1.3 Adoption of EMV infrastructure

2.1.4 Point of sale (POS) terminals

2.2 Business Drivers

2.2.1 Growth in retail industry

2.2.2 Growth in e-commerce

2.3 Economic Drivers

2.3.1 GDP growth

2.3.2 Rising GDP per capita

2.3.3 Inflation

3 Cards and Payments Industry Share Analysis

3.1 Industry Overview

3.1.1 Cash

3.1.2 Check payments

3.1.3 Card transactions

3.1.4 Credit transfer

3.1.5 Direct debit

4 Regulatory Framework and Card Fraud Statistics

4.1 Regulatory Framework

4.1.1 Oversight

4.1.2 New rules for calculating regular and surcharge fees on physical trades

4.1.3 Fee rules for use of payment cards in non-physical trades

4.1.4 SEPA cards framework

4.1.5 Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFL)

4.1.6 Foreign direct investment (FDI) regulations

4.2 Card Fraud Statistics

4.2.1 Card-not-present fraud

4.2.2 Lost or stolen card fraud

4.2.3 Card ID theft

4.2.4 Counterfeit card fraud

5 Emerging Consumer Attitudes and Trends

5.1 Industry Segmentation and Targeting

5.1.1 Retail segment

5.1.2 Corporate segment

5.2 Travel and Tourism Spending

5.2.1 Outbound tourist trips

5.2.2 Outbound tourist spending

5.3 Retail Card Spending

5.3.1 Analysis by product categories

5.3.2 Analysis by retail channels

6 Analysis of Card Payments and Growth Prospects

6.1 Channel Share Analysis by Card Category

6.2 Size and Forecast of the Card Payments Channel

6.2.1 Analysis by number of cards in circulation

6.2.2 Analysis by transaction value

7 Analysis of Credit Card Payments and Growth Prospects

7.1 Overall Category Size and Forecast

7.1.1 Analysis by number of cards in circulation

7.1.2 Analysis by transaction value

7.1.3 Analysis by transaction volume

7.2 Transaction Share Analysis by Channel

7.2.1 Analysis by transaction value

7.2.2 Analysis by transaction volume

7.3 Personal Credit Cards Segment Size and Forecast

7.3.1 Analysis by number of cards in circulation

7.3.2 Analysis by transaction value

7.3.3 Analysis by transaction volume

7.4 Commercial Credit Cards Segment Size and Forecast

7.4.1 Analysis by number of cards in circulation

7.4.2 Analysis by transaction value

7.4.3 Analysis by transaction volume

7.5 Competitive Landscape

7.5.1 Scheme share analysis

7.5.2 Issuer share analysis

8 Analysis of Debit Card Payments and Growth Prospects

8.1 Overall Category Size and Forecast

8.1.1 Analysis by number of cards in circulation

8.1.2 Analysis by transaction value

8.1.3 Analysis by transaction volume

8.2 Transaction Share Analysis by Channel

8.2.1 Analysis by transaction value

8.2.2 Analysis by transaction volume

8.3 Competitive Landscape

8.3.1 Scheme share analysis

8.3.2 Issuer share analysis

9 Analysis of Prepaid Card Payments and Growth Prospects

9.1 Overall Category Size and Forecast

9.1.1 Analysis by number of cards in circulation

9.1.2 Analysis by transaction value

9.2 Open-Loop Prepaid Cards Segment Size and Forecast

9.2.1 Analysis by number of cards in circulation

9.2.2 Analysis by transaction value

9.3 Closed-Loop Prepaid Cards Segment Size and Forecast

9.3.1 Analysis by number of cards in circulation

9.3.2 Analysis by transaction value

10 Merchant Acquiring

10.1 Merchant Acquirers in Denmark

11 Company Profiles of Card Issuers

11.1 Danske Bank

11.1.1 Key financials

11.1.2 Card portfolio

11.1.3 Strategies

11.2 Sydbank

11.2.1 Key financials

11.2.2 Card portfolio

11.2.3 Strategies

11.3 Nordea Bank

11.3.1 Key financials

11.3.2 Card portfolio

11.3.3 Strategies

11.4 Vestjysk Bank

11.4.1 Key financials

11.4.2 Card portfolio

11.4.3 Strategies

11.5 Spar Nord Bank

11.5.1 Key financials

11.5.2 Card portfolio

11.5.3 Strategies

12 Appendix

12.1 Methodology

12.2 Contact GlobalData

12.3 About GlobalData

12.4 GlobalData's Services

12.5 Definitions

12.6 Disclaimer

List of Tables

Table 1: Danish Payment Channels (DKK Billion), 2009-2013

Table 2: Market Entry Strategies of Foreign Banks in Denmark

Table 3: Danish Card Fraud (DKK Million), 2009-2013

Table 4: Cards for Young Population in Denmark

Table 5: Denmark – Cards for Affluent Consumers, 2014

Table 6: Denmark – Purchase Cards, 2014

Table 7: Denmark – Travel Cards for Business Customers, 2014

Table 8: Danish Card Spending by Retail Product Category (DKK Million), 2008 and 2012

Table 9: Danish Card Spending by Retail Channel (DKK Million), 2008 and 2012

Table 10: Danish Card Payments Channel by Card Category (Million), 2009-2018

Table 11: Danish Card Payments Channel Size by Volume of Cards (Million), 2009-2018

Table 12: Danish Card Payments Channel Size by Transaction Value (DKK Billion), 2009-2018

Table 13: Danish Card Payments Channel Size by Transaction Value (US$ Billion), 2009-2018

Table 14: Danish Credit Cards Category Size by Volume of Cards (Million), 2009-2018

Table 15: Danish Credit Cards Category Size by Transaction Value (DKK Billion), 2009-2018

Table 16: Danish Credit Cards Category Size by Transaction Value (US$ Billion), 2009-2018

Table 17: Danish Credit Cards Category Size by Transaction Volume (Million), 2009-2018

Table 18: Danish Personal Credit Cards Segment Size by Volume of Cards (Million), 2009-2018

Table 19: Danish Personal Credit Cards Segment Size by Transaction Value (DKK Billion), 2009-2018

Table 20: Danish Personal Credit Cards Segment Size by Transaction Value (US$ Billion), 2009-2018

Table 21: Danish Personal Credit Cards Segment Size by Transaction Volume (Million), 2009-2018

Table 22: Danish Commercial Credit Cards Segment Size by Volume of Cards (Thousand), 2009-2018

Table 23: Danish Commercial Credit Cards Segment Size by Transaction Value (DKK Million), 2009-2018

Table 24: Danish Commercial Credit Cards Segment Size by Transaction Value (US$ Million), 2009-2018

Table 25: Danish Commercial Credit Cards Segment Size by Transaction Volume (Thousand), 2009-2018

Table 26: Danish Debit Cards Category Size by Volume of Cards (Million), 2009-2018

Table 27: Danish Debit Cards Category Size by Transaction Value (DKK Billion), 2009-2018

Table 28: Danish Debit Cards Category Size by Transaction Value (US$ Billion), 2009-2018

Table 29: Danish Debit Cards Category Size by Transaction Volume (Million), 2009-2018

Table 30: Danish Prepaid Cards Category Size by Volume of Cards (Million), 2009-2018

Table 31: Danish Prepaid Cards Category Size by Transaction Value (DKK Billion), 2009-2018

Table 32: Danish Prepaid Cards Category Size by Transaction Value (US$ Million), 2009-2018

Table 33: Danish Open-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2009-2018

Table 34: Danish Open-Loop Prepaid Cards Segment Size by Transaction Value (DKK Billion), 2009-2018

Table 35: Danish Open-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2009-2018

Table 36: Danish Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009-2018

Table 37: Danish Closed-Loop Prepaid Cards Segment Size by Transaction Value (DKK Million), 2009-2018

Table 38: Danish Closed-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2009-2018

Table 39: Danske Bank – Key Financial Indicators (DKK Billion), Year Ending December, 2012-2013

Table 40: Danske Bank – Card Portfolio and Key Features

Table 41: Sydbank – Key Financial Indicators (DKK Billion), Year Ending December, 2012-2013

Table 42: Sydbank – Card Portfolio and Key Features

Table 43: Nordea Bank – Key Financial Indicators (EUR Billion), Year Ending December, 2012-2013

Table 44: Nordea Bank – Card Portfolio and Key Features

Table 45: Vestjysk Bank – Key Financial Indicators (DKK Million), Year Ending December, 2012-2013

Table 46: Vestjysk Bank – Card Portfolio and Key Features

Table 47: Spar Nord Bank – Key Financial Indicators (DKK Million), Year Ending December, 2012-2013

Table 48: Spar Nord Bank – Card Portfolio and Key Features

Table 49: Key Definitions

List of Figures

Figure 1: Benchmarking the Danish Card Payments Channel Against Other Key Regional Markets

Figure 2: Danish Growth of Various Card Categories (%), 2009-2018

Figure 3: Danish Internet Penetration (Internet Users per 100 Inhabitants), 2009-2018

Figure 4: Danish Value of M-Payments Growth (DKK Million), 2009-2018

Figure 5: EMV Cards Volume in Denmark (Thousand), 2009-2013

Figure 6: Danish POS Penetration, 2009-2018

Figure 7: Danish Value of Retail Sales (DKK Billion), 2009-2018

Figure 8: Danish E-commerce Value (DKK Billion), 2009-2018

Figure 9: Danish Real GDP Growth (%), 2009-2018

Figure 10: Danish Nominal GDP per Capita (US$), 2009-2018

Figure 11: Danish Inflation Rate (%), 2009-2018

Figure 12: Share of Different Payment Channels in Denmark (%), 2009 and 2013

Figure 13: Danish Card Fraud (%), 2009 and 2013

Figure 14: Danish Card-Not-Present Fraud Value (DKK Million), 2009-2013

Figure 15: Danish Lost or Stolen Card Fraud Value (DKK Million), 2009-2013

Figure 16: Danish Card ID Theft Value (DKK Million), 2009-2013

Figure 17: Danish Counterfeit Card Fraud Value (DKK Thousand), 2009-2013

Figure 18: Danish Cards and Payments Industry Segmentation by Card Type

Figure 19: Danish Volume of Outbound Business Trips (Thousand), 2009-2018

Figure 20: Danish Volume of Outbound Trips (Thousand), 2009-2018

Figure 21: Danish Outbound Tourist Spending (DKK Billion), 2009-2018

Figure 22: Danish Card Spending by Retail Product Category Share (%), 2012

Figure 23: Danish Card Spending by Retail Channel Share (%), 2012

Figure 24: Danish Card Payments Channel by Card Category (%), 2009-2018

Figure 25: Danish Card Payments Channel Size by Volume of Cards (Million), 2009-2018

Figure 26: Danish Card Payments Channel Size by Transaction Value (DKK Billion), 2009-2018

Figure 27: Danish Credit Cards Category by Volume and Penetration, 2009-2018

Figure 28: Danish Credit Cards Category Size by Volume of Cards (Million), 2009-2018

Figure 29: Danish Credit Cards Category Size by Transaction Value (DKK Billion), 2009-2018

Figure 30: Danish Cards Category Size by Transaction Volume (Million), 2009-2018

Figure 31: Danish Credit Cards Category Transaction Value Share by Channel (DKK Million), 2009-2018

Figure 32: Danish Credit Cards Transaction Volume Share by Channel (Million), 2009-2018

Figure 33: Danish Personal Credit Cards Segment Size by Volume of Cards (Million), 2009-2018

Figure 34: Danish Personal Credit Cards Segment Size by Transaction Value (DKK Billion), 2009-2018

Figure 35: Danish Personal Credit Cards Segment Size by Transaction Volume (Million), 2009-2018

Figure 36: Danish Commercial Credit Cards Segment Size by Volume of Cards (Thousand), 2009-2018

Figure 37: Danish Commercial Credit Cards Segment Size by Transaction Value (DKK Million), 2009-2018

Figure 38: Danish Commercial Credit Cards Segment Size by Transaction Volume (Thousand), 2009-2018

Figure 39: Danish Credit Cards Category Share by Scheme (%), 2013

Figure 40: Danish Credit Cards Category Share by Issuer (%), 2013

Figure 41: Danish Debit Cards Category Volume and Penetration, 2009-2018

Figure 42: Danish Debit Cards Category Size by Volume of Cards (Million), 2009-2018

Figure 43: Danish Debit Cards Category Size by Transaction Value (DKK Billion), 2009-2018

Figure 44: Danish Debit Cards Category Size by Transaction Volume (Million), 2009-2018

Figure 45: Danish Debit Cards Category Transaction Value Share by Channel (DKK Billion), 2009-2018

Figure 46: Danish Debit Cards Transaction Volume Share by Channel (Million), 2009-2018

Figure 47: Danish Debit Cards Category Share by Scheme (%), 2013

Figure 48: Danish Debit Cards Category Share by Issuer (%), 2013

Figure 49: Danish Prepaid Cards Category Volume and Penetration, 2009-2018

Figure 50: Danish Prepaid Cards Category Size by Volume of Cards (Million), 2009-2018

Figure 51: Danish Prepaid Cards Category Size by Transaction Value (DKK Billion), 2009-2018

Figure 52: Danish Open-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2009-2018

Figure 53: Danish Open-Loop Prepaid Cards Segment Size by Transaction Value (DKK Billion), 2009-2018

Figure 54: Danish Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009-2018

Figure 55: Danish Closed-Loop Prepaid Cards Segment Size by Transaction Value (DKK Million), 2009-2018

Figure 56: Danish Merchant Acquirer Market Shares (%), 2013

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