DENMARK

Insight

Denmark has seen rapid growth since IP’s inception, particularly between 2017 and 2018, with strong growth projections for the next decade. This growth has almost entirely subsumed the use of paper-based payments.

Though the population’s reliance on payment cards is less pronounced than in other countries, interestingly, there is strong usage of mobile wallets. In fact, MobilePay’s mobile wallet is the most used phone app compared to all other mobile applications across all categories. This appetite for mobile wallets suggests other offerings with IP integration should see similar traction.

Though forecasted growth is already strong, the market will likely see further amplification with the launch of P27 next year. Expansion in acceptance by merchants and billers in the region will also accelerate usage.

ACI’s take

Denmark is a fascinating case study for IP. With many Danes living and working across borders on a daily basis, this area will likely pave the way for how cross-jurisdiction IP acceptance barriers are managed in the future.

Indicative of this fluidity is the Öresundsregionen, and specifically the Øresund Bridge, which ties Denmark to Sweden and is home to a population of 4M people who routinely spend their days in both countries. This region continues to forge better economic ties between the two, and creates an imperative for movement towards payments ubiquity.

P27 will be at the center of this, helping to speed up development of the required infrastructure on which new value-added digital overlay services can be built. It will certainly be worth watching to see how P27 drives continued IP adoption in Denmark. Those both in Europe and further afield who are planning their own cross-border initiatives should pay attention for key lessons.

We expect that innovation in the Nordics will take inspiration from other advanced IP and digital payment markets, such as India, and place a focus on digital overlay services. Expect to see overlay services that address the multi-currency challenges of the region. From an adoption perspective, shoppers are most comfortable paying in their local currency and preferred method, so developing consistency across the Nordics in terms of IP methods will drive conversions at the point of sale. Accepting IP payments in any Nordic currency, regardless of physical business location, would become a competitive differentiator for merchants, who will likely demand options from their PSPs.