The Cards and Payments Industry in Sweden: Emerging Trends and Opportunities to 2019

The Swedish payment cards market is highly developed. Average monthly card transactions and average annual spend per card are higher in Sweden than in other European markets such as the UK, the Netherlands and Germany, although they are behind Sweden’s Nordic peers, Denmark, Norway and Finland.

Payment card use in Sweden has been driven by concerted efforts by the government and banks, and consumer willingness to adopt them. As a result, payment cards are gradually replacing cash, and are now used even for small-value transactions at newspaper vendors, homeless magazine sellers and for church donations. Overall, the payment cards market grew at a review-period CAGR of 6.87% in terms of transaction volume, and 5.66% in terms of transaction value. A similar trend is anticipated over the forecast period.

In Sweden, payment card transactions overtook ATM cash withdrawals in 2002. The increase in POS terminals has been paralleled by a substantial increase in the use of payment cards, with the volume of card transactions at POS terminals increasing substantially to reach 2.6 billion in 2014, accounting for 91.3% of the overall payment card transactions, indicating a rising preference for cashless payments among Swedish consumers.

The Swedish government has taken initiatives to bring the entire population into the banking system. According to the World Bank’s Global Findex survey 2014, the percentage of the Swedish population aged 15 or over with a bank account reached 99.7% in 2014. This resulted in high penetration of bank accounts and products such as debit cards. Banks in Sweden are therefore looking to differentiate their product offerings, and card customization is gaining attention. Marketing strategies include serving niche segments such as students, young population, high-income consumers and small and medium-sized enterprises (SMEs).

Scope

• The competitive landscape of Sweden's cards and payments industry

• Actual values for Sweden’s cards and payments industry for 2014, and forecast figures to 2019

• Detailed insights into payment instruments, including: check payments, credit transfers, direct debits, payment cards and cash transactions

• An overview of Sweden’s key alternative payment instruments

• E-commerce market analysis and detail of online payment types in the Swedish market

• Analyses of the key economic, infrastructural and business drivers affecting the Swedish cards and payments industry

• Profiles of major players in Sweden's cards and payments industry

• Overview of strategies adopted by banks and other institutions to market debit, credit and charge cards

Key Highlights

Which product do Swedish banks plan to expand by the end of 2016 to capitalize on the fast-growing e-commerce market? Which banks are involved in this initiative? How successful is this product in the current Swedish cards and payments landscape?

What is the progress of MasterPass digital wallet initiative launched by MasterCard in association with Nordea, SEB and Swedbank? What were the initial benefits for Masterpass users? How will the service gradually be extended in 2016 to benefit Swedish consumers?

How is increased competition anticipated to impact on Sweden’s debit card market? Which alternative payments company is likely to gain a significant market share in the Swedish banking market? What does this company plan in regard to savings accounts and debit cards?

Reasons to buy

• Make strategic business decisions in each category of Sweden's cards and payments industry utilizing GlobalData’s top-level historic and forecast market data

• Identify the key market trends and growth opportunities in Sweden's cards and payments industry and better position yourself to grow your market share

• Analyze the marketing strategies used for selling various card types in Sweden and apply those that best fit with your value proposition

• Assess the key regulations governing Sweden’s cards and payments industry and address those which may impact on your business

Companies mentioned

Swedbank

Svenska Handelsbanken

Nordea Bank

Skandinaviska Enskilda Banken (SEB)

Länsförsäkringar Bank

Visa

MasterCard

American Express

Diners Club

Table of Contents

1 Definitions and Methodology

1.1 Definitions

1.2 Methodology

2 Key Facts and Events

3 Executive Summary

4 Payment Instruments

4.1 Current Payment Environment

5 E-Commerce

5.1 E-Commerce Market Analysis

6 Alternative Payments

6.1 Alternative Payment Instruments

6.1.1 Swish

6.1.2 Seqr

6.1.3 WyWallet

6.1.4 AfterPay

6.1.5 PayByBill

6.1.6 PayPal

6.1.7 Klarna

6.1.8 Trustly

6.1.9 Pay by palm

6.1.10 MasterPass

7 Regulations in the Cards and Payments Industry

7.1 Regulatory Framework

7.1.1 SEPA cards framework

7.1.2 Swedish laws regarding card use

7.1.3 EBA guidelines on the security of online payments

7.1.4 Interchange fee regulation

7.2 Anti-Money Laundering (AML)

7.3 Foreign Direct Investment (FDI) Regulations

8 Analysis of Cards and Payments Industry Drivers

8.1 Demographic Drivers

8.2 Economic Drivers

8.3 Infrastructure Drivers

8.4 Business Drivers

9 Market Segmentation

9.1 Market Segmentation and Targeting

9.1.1 Consumer cards

9.1.2 Commercial cards

10 Payment Cards

10.1 Payment Cards Analysis

10.1.1 Volume and value of payment card transactions by type

10.1.2 Personal vs commercial cards

11 Debit Cards

11.1 Debit Card Market Analysis

11.1.1 Debit card transaction volumes and values by channel

11.1.2 Debit card scheme and issuer shares in terms of transaction value

11.1.3 Debit cards comparison

12 Credit Cards

12.1 Credit Card Market Analysis

12.1.1 Credit card transaction volumes and values by channel

12.1.2 Credit card scheme and issuer shares in terms of transaction value

12.1.3 Credit cards comparison

13 Charge Cards

13.1 Charge Card Market Analysis

13.1.1 Charge card transaction volumes and values by channel

13.1.2 Charge card scheme shares in terms of transaction value

13.1.3 Charge cards comparison

14 Commercial Cards

14.1 Commercial Card Market Analysis

14.1.1 Commercial cards comparison

15 Card Issuers

15.1 Swedbank

15.2 Svenska Handelsbanken

15.3 Nordea Bank

15.4 Skandinaviska Enskilda Banken (SEB)

15.5 Länsförsäkringar Bank

16 Merchant Acquiring

16.1 Merchant Acquiring Market Analysis

17 Appendix

17.1 Tables

17.2 Contact GlobalData

17.3 About GlobalData

17.4 GlobalData’s Services

17.5 Disclaimer

List of Tables

Table 1: Key Definitions

Table 2: Annual Average Exchange Rate

Table 3: Sweden – Key Facts, 2014

Table 4: Regional Benchmarking of Swedish Payment Cards, 2014

Table 5: Sweden – Mode of Entry of Foreign Banks

Table 6: Cards for High-Income Consumers, 2015

Table 7: Cards for Students and the Young Population, 2015

Table 8: Commercial Cards Comparison and Key Features, 2015

Table 9: Sweden – Debit Cards Comparison and Key Features, 2015

Table 10: Sweden – Gold Credit Cards Comparison and Key Features, 2015

Table 11: Sweden – Premium Credit Cards Comparison and Key Features, 2015

Table 12: Sweden – Charge Cards Comparison and Key Features, 2015

Table 13: Sweden – Commercial Cards Comparison and Key Features, 2015

Table 14: Sweden – Payment Instrument Transaction Values (SEK Billion), 2010–2014

Table 15: Sweden – Payment Instrument Transaction Values (US$ Billion), 2010–2014

Table 16: Sweden – Payment Instrument Transaction Volumes (Million), 2010–2014

Table 17: Sweden – Number of Payment Cards in Circulation by Type (Million), 2010–2019

Table 18: Sweden – Volume of Payment Card Transactions by Type (Million), 2010–2019

Table 19: Sweden – Value of Payment Card Transactions by Type (SEK Billion), 2010–2019

Table 20: Sweden – Value of Payment Card Transactions by Type (US$ Billion), 2010–2019

Table 21: Sweden – Personal and Commercial Card Transaction Volumes (Million), 2010–2019

Table 22: Sweden – Personal and Commercial Card Transaction Values (SEK Billion), 2010–2019

Table 23: Sweden – Personal and Commercial Card Transaction Values (US$ Billion), 2010–2019

Table 24: Sweden – Number of Debit Cards in Circulation (Million), 2010–2019

Table 25: Sweden – Debit Card Transaction Volumes and Frequency by Channel, 2010–2019

Table 26: Sweden – Debit Card Total and Average Transaction Values by Channel, 2010–2019

Table 27: Sweden – Debit Card Total and Average Transaction Values by Channel, 2010–2019

Table 28: Sweden – Number of Debit Cards in Circulation By Scheme (Million), 2010–2014

Table 29: Sweden – Debit Card Transaction Values By Scheme (SEK Billion), 2010–2014

Table 30: Sweden – Debit Card Transaction Values By Scheme (US$ Billion), 2010–2014

Table 31: Sweden – Debit Card Transaction Values by Issuer (SEK Billion), 2010–2014

Table 32: Sweden – Debit Card Transaction Values by Issuer (US$ Billion), 2010–2014

Table 33: Sweden – Number of Credit Cards in Circulation (Million), 2010–2019

Table 34: Sweden – Credit Card Transaction Volumes and Frequency by Channel, 2010–2019

Table 35: Sweden – Credit Card Total and Average Transaction Values by Channel, 2010–2019

Table 36: Sweden – Credit Card Total and Average Transaction Values by Channel, 2010–2019

Table 37: Sweden – Number of Credit Cards in Circulation By Scheme (Thousand), 2010–2014

Table 38: Sweden – Credit Card Transaction Values By Scheme (SEK Billion), 2010–2014

Table 39: Sweden – Credit Card Transaction Values By Scheme (US$ Billion), 2010–2014

Table 40: Sweden – Pay Later Card Transaction Values By Issuer (SEK Billion), 2010–2014

Table 41: Sweden – Pay Later Card Transaction Values By Issuer (US$ Billion), 2010–2014

Table 42: Sweden – Number of Charge Cards in Circulation (Thousand), 2009–2018

Table 43: Sweden – Charge Card Transaction Volumes and Frequency by Channel, 2009–2018

Table 44: Sweden – Charge Card Total and Average Transaction Values by Channel, 2009–2018

Table 45: Sweden – Charge Card Total and Average Transaction Values by Channel, 2009–2018

Table 46: Sweden – Number of Charge Cards in Circulation By Scheme (Thousand), 2010–2014

Table 47: Sweden – Charge Card Transaction Values By Scheme (SEK Billion), 2010–2014

Table 48: Sweden – Charge Card Transaction Values By Scheme (US$ Billion), 2009–2014

Table 49: Sweden – Number of Commercial Cards in Circulation (Thousand), 2010–2019

Table 50: Sweden – Commercial Card Transaction Values (SEK Billion), 2010–2019

Table 51: Sweden – Commercial Card Transaction Values (US$ Billion), 2010–2019

Table 52: Sweden – Merchant Acquiring Transaction Volumes by Card Type (Billion), 2010–2019

Table 53: Sweden – Merchant Acquiring Transaction Values by Card Type (SEK Billion), 2010–2019

Table 54: Sweden – Merchant Acquiring Transaction Values by Card Type (US$ Billion), 2010–2019

Table 55: Sweden – Acquirers’ Transaction Volumes (Million), 2010–2014

Table 56: Sweden – Acquirers’ Transaction Values (SEK Billion), 2010–2014

Table 57: Sweden – Acquirers’ Transaction Values (US$ Billion), 2010–2014

Table 58: Sweden – Retail Outlets and Merchant Accounts (Thousand), 2010–2019

List of Figures

Figure 1: Sweden – Payment Instrument Shares by Transaction Value (%), 2010 and 2014

Figure 2: Sweden – Payment Instrument Shares by Transaction Volume (%), 2010 and 2014

Figure 3: Sweden – E-Commerce Value (US$ Billion) and Payment Types (%)

Figure 4: Sweden – Total Population and Structure, 2014

Figure 5: Sweden – Economic Indicators, 2010–2019

Figure 6: Sweden – Number of ATMs, POS Terminals and Banking Structure, 2010–2019

Figure 7: Sweden – Retail Sales and Real Household Consumption, 2010–2014

Figure 8: Sweden – Segmentation by Card Type

Figure 9: Sweden – Growth in Payment Card Transaction Values and Number of Cards in Circulation by Type, 2010–2019

Figure 10: Sweden – Volume and Value of Payment Card Transactions by Type (%), 2010–2019

Figure 11: Sweden – Personal and Commercial Card, Transaction Volumes and Values (%), 2010–2019

Figure 12: Sweden – Growth in Debit Card Transaction Values and Number of Debit Cards in Circulation, 2010–2019

Figure 13: Sweden – Pay Now, Average Interchange Fees: Intra-Network Transactions (%), 2010–2014

Figure 14: Sweden – Pay Now, Average Merchant Service Charge: Domestic Transactions (%), 2010–2019

Figure 15: Sweden – Debit Card Transaction Volumes and Values by Channel, 2010–2019

Figure 16: Sweden – Debit Card Scheme and Issuer Shares in Terms of Transaction Value (%), 2014

Figure 17: Sweden – Growth in Credit Card Transaction Values and Number of Credit Cards in Circulation, 2010–2019

Figure 18: Sweden – Pay Later, Average Interchange Fees: Intra-Network Transactions (%), 2010–2014

Figure 19: Sweden – Pay Later, Average Merchant Service Charge: Domestic Transactions (%), 2010–2019

Figure 20: Sweden – Credit Card Transaction Volumes and Values by Channel, 2010–2019

Figure 21: Sweden – Credit Card Scheme and Issuer Shares in Terms of Transaction Value (%), 2014

Figure 22: Sweden – Growth in Charge Card Transaction Values and Number of Charge Cards in Circulation, 2010–2019

Figure 23: Sweden – Charge Card Transaction Volumes and Values by Channel, 2010–2019

Figure 24: Sweden – Charge Card Scheme Shares in Terms of Transaction Value (%), 2014

Figure 25: Sweden – Number of Commercial Cards in Circulation and Transaction Values, 2010–2019

Figure 26: Sweden – Merchant Acquiring Transaction Volume and Value by Card Type, 2010–2019

Figure 27: Sweden – Acquirers’ Market Share in Terms of Transaction Volume and Value (%), 2014

Figure 28: Sweden – Number of Retail Outlets and Total Merchant Accounts (Thousand), 2010–2019

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