Consumer Finance in Sweden
Euromonitor International's Consumer Finance in Sweden report establishes the size and structure of the market for ATMs, credit cards, debit cards, store cards and smart cards. It looks at key players in the market (issuers and operators), number of cards in circulation, numbers transactions and value of transactions. It offers strategic analysis of sector forecasts and trends to watch.
Buy online to access strategic market analysis and an interactive statistical database of value and volume for retail and internet transactions, number of cards in circulation and company brand shares.
Tables: 142 | Publication date: Mar 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Consumer lending; Financial cards and payments
Executive summary
Consumer Spending Mixed as Economy Slows
High interest rates are impacting sales of those big ticket items most sensitive to rate increases such as cars, boats and houses which all showed steady decline in demand in 2008. Consumer retail spending data for the same period was mixed with positive growth seen in durables and a slightly negative drop-off in consumables. With the current uncertainty in the global market and a general slowing of the Swedish economy into 2009 it remains to be seen to what extent purse strings will tighten in the short to medium term.
Swedish Competition Authority Proposes Changes to Banking Regulations
Following a report from Nordic competition authorites the Swedish Competition Authority, Konkurrensverket, presented a number of new proposals that promote competition among all Swedish banking players in the domestic market. Konkurrensverket hopes that these new measures will benefit customers by fostering stronger competition and in turn better services at cheaper prices moving forward. The recommendations have been put forward to Swedish regulators and entail the following; payment systems should have transparent, non-discriminatory rules and that new, small and foreign enterprises are given access to payment systems on equal terms. Secondly, clear rules are required to avoid a conflict of interests between owners of payment systems who are also a customer of the same system. Thirdly, customers should be given the opportunity to compare what different banks are offering and that more information should be provided on the Internet by government agencies and consumer organisations. Lastly, more effective measures should be put in place to make it easier for consumers to switch banks.
Debit Card Transactions Soar
Card data for 2008 showed Swedes are using their debit cards at record levels. The trend follows on the back of impressive 2007 data where transaction turnover soared towards the SEK500 billion mark. A number of factors help explain the sudden jump in debit card transactions. Firstly, one of Sweden’s largest banks Svenska Handelsbanken replaced over 50,000 virtually redundant ATM cards with its new Frikort debit card product. This move helped boost total debit card use and subsequent transactions as well as spur the use of debit cards over cash to pay for items. Also supporting higher debit card use was a notable increase in the distribution of new POS terminals in retail outlets.
Contactless Payment Interest Extends to Swedish Retailers
To date, contactless payment card initiatives have largely been associated with the Swedish public transport system. The benefit for transport operators is primarily payment transaction efficiency as large volumes of customers can be processed easily and quickly. The same benefits apply to large, high-volume Swedish retailers. In a survey commissioned by Visa Europe and conducted by the Centre for Retail Research, 300 large and medium-sized businesses were interviewed about their future plans for electronic payment systems. The survey revealed that 53% of Swedish retailers are expected to deploy electronic kiosks or PDA-type devices for reading contactless cards.
Cash Use Still Too High According to Central Bank
Sweden’s Central Bank, Riksbanken, has undertaken an analytical study into the cost of cash versus cost of payment card when purchasing. The study is part of the Central Bank’s long-term goal of improving automation and efficiency in the Swedish payment system. The analysis calculated total costs to society associated with either payment instrument and found anything above SEK70 best suited payment by card while below this figure, including micro-payments, cash was the better option. When this threshold of SEK70 is matched against current average cash spend, the results indicate that Swedes are using cash for purchases too high in value where it would be more cost effective using a payment card. This trend reflects the fact that Sweden historically has a higher rate of cash use than its Nordic neighbours partly because of fees being applied at POS terminals but not when withdrawing cash at ATMs. To encourage better payment system efficiency the Central Bank argues that fees should be applied where actual costs are incurred.
Table of contents
CONSUMER FINANCE IN SWEDEN : MARKET INSIGHT
EXECUTIVE SUMMARY
Consumer Spending Mixed as Economy Slows
Swedish Competition Authority Proposes Changes to Banking Regulations
Debit Card Transactions Soar
Contactless Payment Interest Extends to Swedish Retailers
Cash Use Still Too High According to Central Bank
KEY TRENDS AND DEVELOPMENTS
Payment Cards Continue Their Popularity
Top Tier Banks Maintain Market Dominance
Steady Demand For E-Commerce Related Payment Applications
Sweden Catching Up: Payment Cards Finally Winning Over Cash
Slow Start for M-Commerce Applications
MARKET DATA
Table 1 Consumer Payments: Value 2003-2008
Table 2 Financial Cards: Number of Cards in Circulation 2003-2008
Table 3 Financial Cards Transactions: Value 2003-2008
Table 4 Financial Cards: Number of Transactions 2003-2008
Table 5 Financial Cards: Number of Accounts 2003-2008
Table 6 Financial Cards: Number of Cards by Issuer 2003-2007
Table 7 Financial Cards: Number of Cards by Operator 2003-2007
Table 8 Financial Cards: Card Payment Transaction Value by Operator 2003-2007
Table 9 Financial Cards: Card Payment Transactions by Acquirer 2003-2007
Table 10 Consumer Payments Forecast: Value 2008-2013
Table 11 Financial Cards Forecast: Number of Cards in Circulation 2008-2013
Table 12 Financial Cards Forecast: Value 2008-2013
Table 13 Financial Cards Forecast: Number of Transactions 2008-2013
Table 14 Financial Cards Forecast: Number of Accounts 2008-2013
MARKET INDICATORS
Table 15 Number of POS Terminals 2004-2008
Table 16 Number of ATMs 2004-2008
Table 17 Disposable Income 2003-2008
Table 18 Value Lost to Fraud 2003-2008
Table 19 Acquirer Fraud 2003-2008
Table 20 Card Expenditure by Location 2008
Table 21 Card Expenditure by Sector 2008
Table 22 Financial Cards in Circulation by Type: % Number of Cards 2004-2008
Table 23 Domestic versus Foreign Spend 2008
DEFINITIONS
Summary 1 Research Sources
CONSUMER LENDING IN SWEDEN
EXECUTIVE SUMMARY
Negative mortgage growth for 2008
Property repossesions double
Swedes use tax rebates to reduce personal debt
Record household debt and negative saving levels
Authorities clamp down on high credit lending fees
KEY TRENDS AND DEVELOPMENTS
Increase In Household Indebtedness
Fast Money Lending Products Entice Young Borrowers
Non-Performing Consumer Loans Up Slightly
MARKET DATA
Table 24 Consumer Lending By Sector: Outstanding Balance: Value 2003-2008
Table 25 Consumer Lending By Sector: Outstanding Balance: % Value Growth 2003-2008
Table 26 Consumer Lending By Sector: Gross Lending: Value 2003-2008
Table 27 Consumer Lending By Sector: Gross Lending: % Value Growth 2003-2008
Table 28 Consumer Lending: Non-performing vs Other Loans 2003-2008
Table 29 Mortgages/Housing: Non-performing vs Other Loans 2003-2008
Table 30 Consumer Credit: Non-performing vs Other Loans 2003-2008
Table 31 Forecast Consumer Lending By Sector: Outstanding Balance: Value 2008-2013
Table 32 Forecast Consumer Lending By Sector: Outstanding Balance: % Value Growth 2008-2013
Table 33 Forecast Consumer Lending By Sector: Gross Lending: Value 2008-2013
Table 34 Forecast Consumer Lending By Sector: Gross Lending: % Value Growth 2008-2013
DEFINITIONS
Summary 2 Research Sources
LOCAL COMPANY PROFILES - SWEDEN
ICA AB - FINANCIAL CARDS AND PAYMENTS - SWEDEN
STRATEGIC DIRECTION
KEY FACTS
Summary 3 ICA Banken AB: Key Facts
Summary 4 ICA Banken AB: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
NORDEA BANK AB - FINANCIAL CARDS AND PAYMENTS - SWEDEN
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Nordea Bank AB: Key Facts
Summary 6 Nordea Bank AB: Group Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
SVENSKA HANDELSBANKEN AB - FINANCIAL CARDS AND PAYMENTS - SWEDEN
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Svenska Handelsbanken AB: Key Facts
Summary 8 Svenska Handelsbanken AB: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
XPON CARDS AB - FINANCIAL CARDS AND PAYMENTS - SWEDEN
STRATEGIC DIRECTION
KEY FACTS
Summary 9 XPonCard AB: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
ATM TRANSACTIONS IN SWEDEN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 35 ATM Cards Sector Performance: 2003-2008
Table 36 ATM Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 37 ATM Cards Sector Performance: % Growth 2003-2008
Table 38 ATM Cards in Circulation Sector Performance: % Growth 2003-2008
Table 39 ATM Cards Forecast Sector Performance: 2008-2013
Table 40 ATM Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 41 ATM Cards Forecast Sector Performance: % Growth 2008-2013
Table 42 ATM Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
DEBIT TRANSACTIONS IN SWEDEN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 43 Debit Cards Sector Performance: 2003-2008
Table 44 Debit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 45 Debit Cards Sector Performance: % Growth 2003-2008
Table 46 Debit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 47 Debit Cards: Number of Cards by Issuer 2003-2007
Table 48 Debit Cards: Number of Cards by Operator 2003-2007
Table 49 Debit Cards Transactions by Acquirer 2003-2007
Table 50 Debit Cards Payment Transaction Value by Operator 2003-2007
Table 51 Debit Cards Forecast Sector Performance: 2008-2013
Table 52 Debit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 53 Debit Cards Forecast Sector Performance: % Growth 2008-2013
Table 54 Debit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CREDIT CARD TRANSACTIONS IN SWEDEN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 55 Credit Cards Sector Performance: 2003-2008
Table 56 Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 57 Credit Cards Sector Performance: % Growth 2003-2008
Table 58 Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 59 Personal Credit Cards Sector Performance: 2003-2008
Table 60 Personal Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 61 Personal Credit Cards Sector Performance: % Growth 2003-2008
Table 62 Personal Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 63 Commercial Credit Cards Sector Performance: 2003-2008
Table 64 Commercial Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 65 Commercial Credit Cards Sector Performance: % Growth 2003-2008
Table 66 Commercial Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 67 Credit Cards: Number of Cards by Issuer 2003-2007
Table 68 Credit Cards: Number of Cards by Operator 2003-2007
Table 69 Credit Cards Transactions by Acquirer 2003-2007
Table 70 Credit Cards Payment Transaction Value by Operator 2003-2007
Table 71 Personal Credit Cards Payment Transaction Value by Operator 2003-2007
Table 72 Commercial Credit Cards Payment Transaction Value by Operator 2003-2007
Table 73 Credit Cards Forecast Sector Performance: 2008-2013
Table 74 Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 75 Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 76 Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 77 Personal Credit Cards Forecast Sector Performance: 2008-2013
Table 78 Personal Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 79 Personal Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 80 Personal Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 81 Commercial Credit Cards Forecast Sector Performance: 2008-2013
Table 82 Commercial Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 83 Commercial Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 84 Commercial Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CHARGE CARD TRANSACTIONS IN SWEDEN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 85 Charge Cards Sector Performance: 2003-2008
Table 86 Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 87 Charge Cards Sector Performance: % Growth 2003-2008
Table 88 Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 89 Personal Charge Cards Sector Performance: 2003-2008
Table 90 Personal Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 91 Personal Charge Cards Sector Performance: % Growth 2003-2008
Table 92 Personal Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 93 Commercial Charge Cards Sector Performance: 2003-2008
Table 94 Commercial Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 95 Commercial Charge Cards Sector Performance: % Growth 2003-2008
Table 96 Commercial Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 97 Charge Cards: Number of Cards by Issuer 2003-2007
Table 98 Charge Cards: Number of Cards by Operator 2003-2007
Table 99 Charge Cards Transactions by Acquirer 2003-2007
Table 100 Charge Cards Payment Transaction Value by Operator 2003-2007
Table 101 Personal Charge Cards Transaction Value by Operator 2003-2007
Table 102 Commercial Charge Cards Payment Transaction Value by Operator 2003-2007
Table 103 Charge Cards Forecast Sector Performance: 2008-2013
Table 104 Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 105 Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 106 Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 107 Personal Charge Cards Forecast Sector Performance: 2008-2013
Table 108 Personal Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 109 Personal Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 110 Personal Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 111 Commercial Charge Cards Forecast Sector Performance: 2008-2013
Table 112 Commercial Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 113 Commercial Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 114 Commercial Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
GENERAL PURPOSE PRE-PAID CARD TRANSACTIONS IN SWEDEN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 115 General Purpose Pre-paid Cards Sector Performance: 2003-2008
Table 116 General Purpose Pre-paid Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 117 General Purpose Pre-paid Cards Sector Performance: % Growth 2003-2008
Table 118 General Purpose Pre-paid Cards in Circulation Sector Performance: % Growth 2003-2008
Table 119 General Purpose Pre-paid Cards by Type: % Number of Cards 2004-2008
Table 120 General Purpose Pre-paid Cards: Number of Cards by Operator 2003-2007
Table 121 General Purpose Pre-paid Cards Transaction Value by Operator 2003-2007
Table 122 General Purpose Pre-paid Cards Forecast Sector Performance: 2008-2013
Table 123 General Purpose Pre-paid Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 124 General Purpose Pre-paid Cards Forecast Sector Performance: % Growth 2008-2013
Table 125 General Purpose Pre-paid Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
STORE CARD TRANSACTIONS IN SWEDEN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 126 Store Cards Sector Performance: 2003-2008
Table 127 Store Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 128 Store Cards Sector Performance: % Growth 2003-2008
Table 129 Store Cards in Circulation Sector Performance: % Growth 2003-2008
Table 130 Store Cards Forecast Sector Performance: 2008-2013
Table 131 Store Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 132 Store Cards Forecast Sector Performance: % Growth 2008-2013
Table 133 Store Cards in Circulation Forecast Sector Performance: % Growth 2008-2013