Financial Cards and Payments in Denmark

Positive economic sentiment supports steady growth of financial payments in Denmark

The positive performance of financial cards in Denmark, in terms of growth in number of cards in circulation and transactions, was driven by increasing private consumption due to robust economic growth, a low unemployment rate, and higher disposable incomes. This positive atmosphere also offered an improved climate for business, with the number of commercial credit cards and debit cards experiencing stable growth.

High loss of value to fraud through card not present encourages consumers to be more vigilant with banks offering greater security

The popularity of shopping online in Denmark also brings concerns regarding fraud with card not present holding the dominant share in value lost to fraud in 2019. However, compared to a surge in card fraud up to 2016, the figures vastly improved until 2018, when another wave of cyber security issues impacted the country.

High smartphone penetration encourages increasing popularity of m-commerce

With increasing digitalisation in Denmark comes further penetration of the internet and smartphone usage, with many consumers appreciating the convenience of being able to browse online and make payments without having to leave their homes, although the value share of payments made online compared to the cardholder being present remains low. However, online payments made through a laptop, computer or tablet are decreasing due to the increasing popularity of consumers making purchases through their smartphones.

Danske continues to suffer from loss of consumer trust but MobilePay offer some hope

In terms of number of cards in circulation in Denmark, leading pre-paid card Rejsekort took over the leadership of all financial cards. Rejsekort transportation cards are widely used on trains and buses by Danish students in addition to allowing them to pay for a number of services at school, offering parents peace of mind as they can track what their children are paying for.

Positive outlook for financial payments in Denmark with m-commerce continuing to be the strongest performer

With a positive outlook for the Danish economy and accelerating growth in private consumption in the country supported by rising employment and positive economic sentiment, financial cards and payments is predicted to continue to record steady growth over the forecast period. The largest categories of debit cards, personal credit cards and closed loop pre-paid cards are all predicted to record stable demand in terms of cards in circulation and positive current value growth, although the latter will be slower compared to the review period.

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