The Cards and Payments Industry in Denmark: Emerging Trends and Opportunities to 2021

GlobalData’s 'The Cards and Payments Industry in Denmark: Emerging Trends and Opportunities to 2021' report provides detailed analysis of market trends in the Danish cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including direct debits, check payments, payment cards, cash transactions and credit transfers during the review period (2012–2016).

The report also analyzes various payment card markets operating in the industry, and provides detailed information on the number of cards in circulation, and transaction values and volumes during the review period and over the forecast period (2017–2021). It also offers information on the country's competitive landscape, including the 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 details of regulatory policy and recent changes in the regulatory structure.

Scope

• This report provides a comprehensive analysis of the Danish cards and payments industry.

• It provides current values for the Danish cards and payments industry for 2016, and forecast figures to 2021.

• It details the different demographic, economic, infrastructural and business drivers affecting the Danish cards and payments industry.

• It outlines the current regulatory framework in the industry.

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

Key Highlights

• Contactless payments are still in a developmental phase in Denmark. The number of contactless cards grew significantly during 2015–2016, from 700,000 to 2.5 million; the figure is expected to reach 11.5 million by the end of 2021. To capitalize on the rising preference for contactless payments, Danske Bank and Jyske Bank began offering contactless Dankort cards from August 2015. Contactless mobile payments (m-payments) are also expected to gain prominence. Nets entered into an agreement with JCB in April 2016, allowing merchants to accept Dankort debit card payments via smartphones using J/Speedy, JCB's contactless technology. J/Speedy can be used to make contactless payments of up to US$29.8 (DKK200); a security code is required for transactions above this amount.

• To capitalize on the rising number of transactions at retail outlets, a number of mobile POS (mPOS) providers – including mobile and tablet – are entering the Danish cards and payments industry. The latest is the introduction of a cloud-based POS solution by Danish startup Shopbox in April 2016. The solution provides faster transaction processing at small merchants such as coffee shops, clubs and sports arenas. Shopbox’s POS solution runs on both iOS and Windows-based tablets. In February 2015, iZettle launched the iZettle Card Reader Lite. This is a chip-and-PIN card reader that can be connected to tablets and smartphones to accept card-based payments.

• To further expand its network in the Nordic and Baltic regions, Nordic payment service provider Nets signed a US$255.5 million (DKK1.7 billion) agreement with Nordea in June 2015 to acquire its merchant acquiring business. This agreement enables Nets to serve 240,000 merchants in the Nordic and Baltic region. The company is also focused on improving the payment infrastructure, and signed an agreement with Dansk Supermarked in 2014 to upgrade its POS terminals with contactless technology at all 600 of its retail stores. Similarly, to modernize the digital infrastructure in Denmark, Nets signed an agreement with Danish banks and the Danish Chamber of Commerce in 2014 to launch contactless Dankort cards.

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.

Companies mentioned

Danske Bank

Nordea Bank

Sydbank

Nykredit Bank

Skandinaviska Enskilda Banken

Dankort

Visa

MasterCard

Table of Contents

1 DEFINITIONS AND METHODOLOGY

1.1 Definitions

1.2 Methodology

2 KEY FACTS AND HIGHLIGHTS

3 EXECUTIVE SUMMARY

4 PAYMENT INSTRUMENTS

4.1 Current Payment Environment

5 E-COMMERCE AND ALTERNATIVE PAYMENTS

5.1 E-Commerce Market Analysis

5.2 Alternative Payment Solutions

5.2.1 MobilePay

5.2.2 PayPal

5.2.3 Klarna

5.2.4 Trustly

5.2.5 Swipp

6 REGULATIONS IN THE CARDS AND PAYMENTS INDUSTRY

6.1 Regulatory Framework

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

6.1.2 Single Euro Payments Area (SEPA) cards framework

6.2 Anti-Money Laundering (AML)

6.3 Foreign Direct Investment (FDI) Regulations

7 ANALYSIS OF CARDS AND PAYMENTS INDUSTRY DRIVERS

8 PAYMENT CARDS

9 DEBIT CARDS

9.1 Debit Cards Market Analysis

9.2 Competition in the Debit Cards Market

9.3 Debit Cards Comparison

10 PAY LATER CARDS

10.1 Pay Later Card Market Analysis

10.2 Competition in the Pay Later Cards Market

10.3 Pay Later Cards Comparison

11 CARD ISSUERS

11.1 Danske Bank

11.2 Nordea Bank

11.3 Sydbank

11.4 Nykredit Bank

11.5 Scandinaviska Enskilda Banken

12 MERCHANT ACQUIRING

13 APPENDIX

13.1 Tables

13.2 Contact GlobalData

13.3 About GlobalData

13.4 GlobalData’s Services

13.5 Disclaimer

List of Tables

Table 1: Key Definitions

Table 2: Annual Average Exchange Rate

Table 3: Denmark – Key Facts, 2016

Table 4: Regional Benchmarking of Danish Payment Cards, 2016

Table 5: Denmark – Mode of Entry of Foreign Banks

Table 6: Denmark – Debit Cards Comparison and Key Features, 2016

Table 7: Denmark – Gold Credit Cards Comparison and Key Features, 2016

Table 8: Denmark – Premium Credit Cards Comparison and Key Features, 2016

Table 9: Denmark – Payment Instrument Transaction Values (DKK Billion), 2012–2016

Table 10: Denmark – Payment Instrument Transaction Values (US$ Billion), 2012–2016

Table 11: Denmark – Payment Instrument Transaction Volumes (Million), 2012–2016

Table 12: Denmark – Number of Payment Cards in Circulation by Type (Million), 2012–2021

Table 13: Denmark – Volume of Payment Card Transactions by Type (Million), 2012–2021

Table 14: Denmark – Value of Payment Card Transactions by Type (DKK Billion), 2012–2021

Table 15: Denmark – Value of Payment Card Transactions by Type (US$ Billion), 2012–2021

Table 16: Denmark – Number of Debit Cards in Circulation (Million), 2012–2021

Table 17: Denmark – Debit Card Transaction Volumes and Frequency by Channel, 2012–2021

Table 18: Denmark – Debit Card Total and Average Transaction Values by Channel, 2012–2021

Table 19: Denmark – Debit Card Total and Average Transaction Values by Channel, 2012–2021

Table 20: Denmark – Number of Debit Cards in Circulation by Scheme (Million), 2012–2016

Table 21: Denmark – Debit Card Transaction Values by Scheme (DKK Billion), 2012–2016

Table 22: Denmark – Debit Card Transaction Values by Scheme (US$ Billion), 2012–2016

Table 23: Denmark – Debit Card Transaction Values by Issuer (DKK Billion), 2012–2016

Table 24: Denmark – Debit Card Transaction Values by Issuer (US$ Billion), 2012–2016

Table 25: Denmark – Number of Pay Later Cards in Circulation (Million), 2012–2021

Table 26: Denmark – Pay Later Card Transaction Volumes and Frequency by Channel, 2012–2021

Table 27: Denmark – Pay Later Card Total and Average Transaction Values by Channel, 2012–2021

Table 28: Denmark – Pay Later Card Total and Average Transaction Values by Channel, 2012–2021

Table 29: Denmark – Number of Pay Later Cards in Circulation by Scheme (Thousand), 2012–2016

Table 30: Denmark – Pay Later Card Transaction Values by Scheme (DKK Billion), 2012–2016

Table 31: Denmark – Pay Later Card Transaction Values by Scheme (US$ Billion), 2012–2016

Table 32: Denmark – Pay Later Card Transaction Values by Issuer (DKK Billion), 2012–2016

Table 33: Denmark – Pay Later Card Transaction Values by Issuer (US$ Billion), 2012–2016

Table 34: Denmark – Personal and Commercial Pay Later Card Transaction Volumes (Million), 2012–2021

Table 35: Denmark – Personal and Commercial Pay Later Card Transaction Values (DKK Billion), 2012–2021

Table 36: Denmark – Personal and Commercial Pay Later Card Transaction Values (US$ Billion), 2012–2021

Table 37: Denmark – Number of Commercial Pay Later Cards in Circulation (Thousand), 2012–2021

Table 38: Denmark – Commercial Pay Later Card Transaction Volumes (Million), 2012–2021

Table 39: Denmark – Commercial Pay Later Card Transaction Values (DKK Billion), 2012–2021

Table 40: Denmark – Commercial Pay Later Card Transaction Values (US$ Million), 2012–2021

Table 41: Denmark – Merchant Acquiring Transaction Volumes (Billion), 2011–2020

Table 42: Denmark – Merchant Acquiring Transaction Values (DKK Billion), 2011–2020

Table 43: Denmark – Merchant Acquiring Transaction Values (US$ Billion), 2011–2020

Table 44: Denmark – Acquirers’ Transaction Volumes (Million), 2011–2015

Table 45: Denmark – Acquirers’ Transaction Values (DKK Billion), 2011–2015

Table 46: Denmark – Acquirers’ Transaction Values (US$ Billion), 2011–2015

Table 47: Denmark – Retail Outlets and Card Accepting Merchants (Thousand), 2011–2020

Table 48: Denmark – Debit Card, Average Interchange Fees: Intra-Network Transactions (%), 2011–2015

Table 49: Denmark – Debit Card, Average Merchant Service Charge and Interchange Fee (%), 2011–2020

Table 50: Denmark – Pay Later Card, Average Interchange Fees: Intra-Network Transactions (%), 2011–2015

Table 51: Denmark – Pay Later Card, Average Merchant Service Charge and Interchange Fee (%), 2011–2020

List of Figures

Figure 1: Denmark – Payment Instrument Shares by Transaction Value (%), 2012 vs 2016

Figure 2: Denmark – Payment Instrument Shares by Transaction Volume (%), 2012 vs 2016

Figure 3: Denmark – E-Commerce Value, 2012–2021

Figure 4: Denmark – E-Commerce Payment Methods, 2016

Figure 5: Denmark – Population

Figure 6: Denmark – Economic Indicators

Figure 7: Denmark – ATMs and POS Terminals

Figure 8: Denmark – Household Consumption

Figure 9: Denmark – Growth in Payment Cards Transaction Values, 2012–2021

Figure 10: Denmark – Number of Cards in Circulation by Type, 2012–2021

Figure 11: Denmark – Debit Card Penetration, 2016

Figure 12: Denmark – Turnover Per Debit Card, 2016

Figure 13: Denmark – Debit Card Scheme Share in Terms of Transaction Value, 2016

Figure 14: Denmark – Debit Card Issuer Share in Terms of Transaction Value, 2016

Figure 15: Denmark – Pay Later Cards Penetration, 2016

Figure 16: Denmark – Turnover Per Pay Later Card, 2016

Figure 17: Denmark – Pay Later Cards Scheme Share in Terms of Transaction Value, 2016

Figure 18: Denmark – Pay Later Cards Issuer Share in Terms of Transaction Value, 2016

Figure 19: Denmark – Merchant Acquiring Transaction Volume and Value, 2011–2020

Figure 20: Denmark – Acquirers’ Market Share in Terms of Transaction Volume and Value (%), 2015

Figure 21: Denmark – Average Merchant Service Charge and Interchange Fee (%), 2011–2020

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