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

The European debt crisis had a profound effect on Finland’s economy, with GDP contracting by 1.4% in 2013. The subdued economic development from 2009 onwards had a dampening effect on the overall cards and payments industry during the review period (2009–2013). As the country entered into a recession for the third time in 2014, economic recovery is anticipated to be sluggish, which is likely to impede the cards and payments industry’s growth over the forecast period (2014–2018).

In terms of number of cards in circulation, Finnish payment cards, including debit, credit and charge cards, registered positive growth during the review period at a compound annual growth rate (CAGR) of 2.03%, increasing from 10.6 million cards in circulation in 2009 to 11.4 million in 2013.

In terms of transaction value, payment cards valued EUR56.6 billion (US$75.1 billion) in 2013, after registering a review-period CAGR of 3.27%.

Improved banking infrastructure, new product developments, rising awareness of electronic payments and wider acceptance of payment cards at point-of-sale (POS) terminals were key factors driving growth. The adoption of Europay, MasterCard and Visa (EMV) standards and the emergence of contactless technology supported this growth.

The average transaction value (ATV) in Finland was US$54.1 in 2013, which was the lowest among the Nordic countries of Norway, Denmark and Sweden, which recorded ATVs of US$68.3, US$56.6 and US$55 respectively. In terms of card penetration, Norway had the highest level of penetration with 3.6 cards per inhabitant, followed by Sweden with 2.3, Denmark with 2.4 and Finland with 1.5.

Despite having one of the smallest populations in the eurozone, Finland leads the world in terms of frequency of use of payment cards. Finland recorded the highest frequency of use in 2013, with 172.8 transactions per card, followed by Denmark with 159.2, Sweden with 114.1, the Netherlands with 107.1, and Australia with 96.6.

According to a 2013 study by the Federation of Finnish Financial Services, two-thirds of Finns used payment cards for regular purchases at grocery stores, supermarkets and gas stations. With proposed government reforms, to be introduced in late 2014, to make it compulsory for retailers to offer electronic options for small-value payments, the frequency of use is anticipated to accelerate further over the forecast period.

Scope

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

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

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

Key Highlights

• The European debt crisis had a profound effect on Finland’s economy, with GDP contracting by 1.4% in 2013. The subdued economic development from 2009 onwards had a dampening effect on the overall cards and payments industry during the review period (2009–2013). As the country entered into a recession for the third time in 2014, economic recovery is anticipated to be sluggish, which is likely to impede the cards and payments industry’s growth over the forecast period (2014–2018).

• In terms of number of cards in circulation, the Finnish payment cards instrument, including debit, credit and charge cards, registered positive growth during the review period, recording a compound annual growth rate (CAGR) of 2.03%, increasing from 10.6 million cards in circulation in 2009 to 11.4 million in 2013. In terms of transaction value, payment cards valued EUR56.6 billion (US$75.1 billion) in 2013, after registering a review-period CAGR of 3.27%.

• The average transaction value (ATV) in Finland was US$54.1 in 2013, which was the lowest among the Nordic countries of Norway, Denmark and Sweden, which recorded ATVs of US$68.3, US$56.6 and US$55 respectively. In terms of card penetration, Norway had the highest level of penetration with 3.6 cards per inhabitant, followed by Sweden with 2.3, Denmark with 2.4 and Finland with 1.5.

• Contactless payments are being rolled out across the country, in areas such as public transport systems and at retail merchants. In 2012, Elisa issued prepaid stickers to students using near-field communication (NFC) technology in association with MasterCard, and benefit and discount card Lyyra. These stickers were issued to more than 100,000 students, and can be used in college canteens and at other stores where contactless terminals are installed.

Reasons to buy

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

• Understand the key market trends and growth opportunities in Finland's cards and payments industry.

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

• Gain insights into marketing strategies used for various card types in Finland.

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

Companies mentioned

Nordea Bank

OP-Pohjola Group

Danske Bank

Bank of Åland

Handelsbanken

MasterCard

Visa

American Express

Diners Club

Table of Contents

1 Key Facts and Events

2 Executive Summary

3 Payment Instruments

3.1 Current Payments Environment

3.2 Alternative Payment Instruments

3.2.1 Mobile payments

3.2.2 PayPal

3.2.3 Skrill

3.2.4 Elisa Lompakko

3.2.5 Klarna

3.2.6 Click2Pay

3.2.7 EuTeller

3.2.8 Trustly

3.2.9 ClickandBuy

3.2.10 Facial recognition algorithms

4 Market Attractiveness and Future Prospects of Cards and Payments

5 Analysis of Cards and Payments Industry Drivers

5.1 Demographic Drivers

5.2 Economic Drivers

5.3 Infrastructure Drivers

5.4 Business Drivers

6 Emerging Consumer Attitudes and Trends

6.1 Market Segmentation and Targeting

6.1.1 Consumer cards

6.1.2 Corporate cards

6.2 New Product Launches

6.3 Travel Spending

6.3.1 Outbound trips volume and spending

6.3.2 Inbound trips volume and spending

7 Payment Cards

7.1 Payment Cards Instrument Analysis

7.1.1 Number of cards in circulation by card type

7.1.2 Transaction volume by card type

7.1.3 Transaction value by card type

7.1.4 Personal vs commercial cards

8 Debit Cards

8.1 Debit Cards Market Analysis

8.1.1 Number of debit cards in circulation

8.1.2 Debit card transaction volumes by channel

8.1.3 Debit card transaction value by channel

8.1.4 Number of debit cards in circulation by scheme

8.1.5 Debit cards transaction value by scheme

8.1.6 Debit cards issuers market shares

8.1.7 Debit cards comparison

9 Credit Cards

9.1 Credit Cards Market Analysis

9.1.1 Number of credit cards in circulation

9.1.2 Credit cards transaction volume by channel

9.1.3 Credit cards transaction value by channel

9.1.4 Number of credit cards in circulation by scheme

9.1.5 Credit cards transaction value by scheme

9.1.6 Credit cards issuers market share

9.1.7 Credit cards comparison

10 Charge Cards

10.1 Charge Cards Market Analysis

10.1.1 Number of charge cards in circulation

10.1.2 Charge cards transaction volume by channel

10.1.3 Charge cards transaction value by channel

10.1.4 Number of charge cards in circulation by scheme

10.1.5 Charge cards transaction value by scheme

10.1.6 Charge cards comparison

11 Commercial Cards

11.1 Commercial Cards Market Analysis

11.1.1 Number of commercial cards in circulation

11.1.2 Commercial cards transaction value

11.1.3 Commercial credit cards

11.1.4 Commercial charge cards

11.1.5 Commercial cards comparison

12 Regulations in the Cards and Payments Industry

12.1 Regulatory Framework

12.2 SEPA Cards Framework

12.3 Anti-Money Laundering (AML)

12.4 Foreign Direct Investment (FDI) Regulations

13 Card Fraud Statistics

13.1 Card Fraud Analysis

14 Card Issuers

14.1 Nordea Bank

14.2 OP-Pohjola Group

14.3 Danske Bank

14.4 Bank of Åland

14.5 Handelsbanken

15 Card Schemes

15.1 Visa

15.2 MasterCard

15.3 American Express

15.4 Diners Club

16 Appendix

16.1 Tables

16.2 Methodology

16.3 Contact GlobalData

16.4 About GlobalData

16.5 GlobalData’s Services

16.6 Definitions

16.7 Disclaimer

List of Tables

Table 1: Finland – Key Facts, 2013

Table 2: Regional Benchmarking of Finnish Payment Cards, 2013

Table 3: Cards for High-Income Customers

Table 4: Cards for Students and Young People

Table 5: Cards for Frequent Travelers

Table 6: Cards for Corporate Customers

Table 7: Finland – New Product Launches

Table 8: Regional Benchmarking of Finnish Debit Cards, 2013

Table 9: Finland – Visa Domestic Interchange Reimbursement Fees, 2011

Table 10: Finland – MasterCard Consumer Card Interchange Fees, 2014

Table 11: Finland – MasterCard Commercial Card Interchange Fees, 2014

Table 12: Finland – Debit Cards Comparison and Key Features

Table 13: Regional Benchmarking of Finnish Credit Cards, 2013

Table 14: Finland – Visa Domestic Interchange Reimbursement Fees, 2011

Table 15: Finland – MasterCard Consumer Card Interchange Fees, 2014

Table 16: Finland – MasterCard Commercial Card Interchange Fees, 2014

Table 17: Finland – Gold Credit Cards Comparison and Key Features

Table 18: Finland – Premium Credit Cards Comparison and Key Features

Table 19: Regional Benchmarking of Finnish Charge Cards, 2013

Table 20: Finland – Charge Cards Comparison and Key Features

Table 21: Finland – Commercial Cards Comparison and Key Features

Table 22: Finland – Market Entry Strategies of Foreign Banks

Table 23: Finland – Payment Instruments Transaction Value (EUR Billion), 2009–2013

Table 24: Finland – Payment Instruments Transaction Value (US$ Billion), 2009–2013

Table 25: Finland – Payment Instruments Transaction Volume (Million), 2009–2013

Table 26: Finland – Number of Cards in Circulation by Card Type (Thousand), 2009–2018

Table 27: Finland – Transaction Volume by Card Type (Million), 2009–2018

Table 28: Finland – Transaction Value by Card Type (EUR Million), 2009–2018

Table 29: Finland – Transaction Value by Card Type (US$ Million), 2009–2018

Table 30: Finland – Personal and Commercial Cards Transaction Value (EUR Billion), 2009–2018

Table 31: Finland – Personal and Commercial Cards Transaction Value (US$ Billion), 2009–2018

Table 32: Finland – Number of Debit Cards in Circulation (Million), 2009–2018

Table 33: Finland – Debit Cards Transaction Volume and Frequency by Channel, 2009–2018

Table 34: Finland – Debit Cards Total and Average Transaction Value by Channel, 2009–2018

Table 33: Finland – Debit Cards Total and Average Transaction Value by Channel, 2009–2018

Table 34: Finland – Number of Debit Cards in Circulation by Scheme (Million), 2009–2013

Table 35: Finland – Debit Cards Transaction Value by Scheme (EUR Million), 2009–2013

Table 36: Finland – Debit Cards Transaction Value by Scheme (US$ Million), 2009–2013

Table 37: Finland – Debit Cards Transaction Value by Issuer (EUR Billion), 2009–2013

Table 38: Finland – Debit Cards Transaction Value by Issuer (US$ Billion), 2009–2013

Table 39: Finland – Number of Credit Cards in Circulation (Million), 2009–2018

Table 40: Finland – Credit Cards Transaction Volume and Frequency by Channel, 2009–2018

Table 41: Finland – Credit Cards Total and Average Transaction Value by Channel, 2009–2018

Table 42: Finland – Credit Cards Total and Average Transaction Value by Channel, 2009–2018

Table 43: Finland – Number of Credit Cards in Circulation by Scheme (Thousand), 2009–2013

Table 44: Finland – Credit Cards Transaction Value by Scheme (EUR Million), 2009–2013

Table 45: Finland – Credit Cards Transaction Value by Scheme (US$ Million), 2009–2013

Table 46: Finland – Credit Cards Transaction Value by Issuer (EUR Million), 2009–2013

Table 47: Finland – Credit Cards Transaction Value by Issuer (US$ Million), 2009–2013

Table 48: Finland – Credit Cards Balance Outstanding By Issuer (EUR Million), 2009–2013

Table 49: Finland – Credit Cards Balance Outstanding By Issuer (US$ Million), 2009–2013

Table 50: Finland – Number of Charge Cards in Circulation (Thousand), 2009–2018

Table 51: Finland – Charge Cards Transaction Volume and Frequency by Channel, 2009–2018

Table 52: Finland – Charge Cards Total and Average Transaction Value by Channel, 2009–2018

Table 53: Finland – Charge Cards Total and Average Transaction Value by Channel, 2009–2018

Table 54: Finland – Number of Charge Cards in Circulation by Scheme (Thousand), 2009–2013

Table 55: Finland – Charge Cards Transaction Value by Scheme (EUR Million), 2009–2013

Table 56: Finland – Charge Cards Transaction Value by Scheme (US$ Million), 2009–2013

Table 57: Finland – Number of Commercial Cards in Circulation (Thousand), 2009–2018

Table 58: Finland – Commercial Cards Transaction Value (EUR Billion), 2009–2018

Table 59: Finland – Commercial Cards Transaction Value (US$ Billion), 2009–2018

Table 60: Finland – Commercial Credit Cards, 2009–2018

Table 61: Finland – Commercial Charge Cards, 2009–2018

Table 62: Finland – Card Fraud (EUR Million), 2009–2013

Table 63: Finland – Card Fraud (US$ Million), 2009–2013

Table 64: Key Definitions

List of Figures

Figure 1: Finland – Payment Instrument Shares by Transaction Value (%), 2009 and 2013

Figure 2: Finland – Payment Instrument Shares by Transaction Volume (%), 2009 and 2013

Figure 3: Finland – Payment Cards Transaction Value and Growth, 2009–2018

Figure 4: Finland – Total Population (Million) and Proportion Aged Over 65 Years (%), 2009–2018

Figure 5: Finland – Nominal GDP (US$ Billion) and Real GDP Growth Rate (%), 2009–2018

Figure 6: Finland – Volume of ATMs and Penetration, 2009–2018

Figure 7: Finland – Volume of POS Terminals and Penetration, 2009–2018

Figure 8: Finland – Retail Sales Value (EUR Billion), 2009–2018

Figure 9: Finland – Cards and Payments Industry Segmentation by Card Type

Figure 10: Finland – Outbound Trips Volume and Spending, 2009–2018

Figure 11: Finland – Inbound Trips Volume and Spending, 2009–2018

Figure 12: Finland – Card Shares In Terms of Numbers in Circulation (%), 2009–2018

Figure 13: Finland – Card Shares in Terms of Transaction Volume (%), 2009–2018

Figure 14: Finland – Card Shares in Terms of Transaction Value (%), 2009–2018

Figure 15: Finland – Personal and Commercial Cards, Transaction Value (EUR Billion), 2009–2018

Figure 16: Finland – Number of Debit Cards in Circulation (Million), 2009–2018

Figure 17: Finland – Debit Cards Transaction Volume by Channel (Million), 2009–2018

Figure 18: Finland – Debit Cards Transaction Value by Channel (EUR Billion), 2009–2018

Figure 19: Finland – Debit Cards Scheme Shares in Terms of Number of Cards in Circulation (%), 2013

Figure 20: Finland – Debit Cards Scheme Market Share in Terms of Transaction Value (%), 2013

Figure 21: Finland – Debit Cards Issuers Market Shares in Terms of Transaction Value (%), 2013

Figure 22: Finland – Number of Credit Cards in Circulation (Million), 2009–2018

Figure 23: Finland – Credit Cards Transaction Volume by Channel (Million), 2009–2018

Figure 24: Finland – Credit Cards Transaction Value by Channel (EUR Billion), 2009–2018

Figure 25: Finland – Credit Cards Scheme Market Share in Terms of Number of Cards in Circulation (%), 2013

Figure 26: Finland – Credit Cards Scheme Market Share in Terms of Transaction Value (%), 2013

Figure 27: Finland – Credit Cards Issuers Market Share in Terms of Transaction Value (%), 2013

Figure 28: Finland – Credit Cards Issuers Market Share in Terms of Outstanding Balance (%), 2013

Figure 29: Finland – Number of Charge Cards in Circulation (Thousand), 2009–2018

Figure 30: Finland – Charge Cards Transaction Volume by Channel (Million), 2009–2018

Figure 31: Finland – Charge Cards Transaction Value by Channel (EUR Million), 2009–2018

Figure 32: Finland – Charge Cards Scheme Market Share in Terms of Number of Cards in Circulation (%), 2013

Figure 33: Finland – Charge Cards Scheme Market Share in Terms of Transaction Value (%), 2013

Figure 34: Finland – Number of Commercial Cards in Circulation (Thousand), 2009–2018

Figure 35: Finland – Commercial Cards Transaction Value (EUR Million), 2009–2018

Figure 36: Finland – Shares of Various Types of Card Fraud in Terms of Transaction Value (%), 2009 and 2013

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