DENMARK

EUROPE

As it stands, Denmark has a robust IP infrastructure, used widely by individuals and businesses alike for fund transfers and payments. Straksclearing, also known as Express Transfers or RealTime 24/7, was launched in 2014 and is owned by the Danish Bankers Association and operated by Nets. It enables users to make P2P, C2B and B2B payments, although to offer IP, banks must participate in Straksclearing, as well as in the central bank’s payments system Kronos. They must also hold a primary account and a settlement account with Straksclearing

The system offers an Open API, enabling participants to build new services by integrating with the platform. The maximum limit for fund transfers is DKK500,000 ($76,718) and transfers are settled within 10 seconds. Consumers can transact through mobile apps for free, though certain banks may charge a small fee for online payments. Businesses are also charged a fee for using this system.

These factors have contributed to strong YOY growth of 36%, and the Danish IP market could grow even further with planned integration into the Pan European SCT Inst. The launch of P27 throughout the Nordic region will likely drive adoption even further.

Timeline

MARKET DEVELOPMENT

ACCEPTANCE
  • Consumers
  • Banks
  • Merchants
  • Billers

TOTAL PARTICIPANTS

75

Population banking level

2.07

Number of debit, credit and charge cards per adult

83

Index to global average

P

Progressing

Key statistics

2014

IP launch year

Immediate payments types

Single instance, recurring

Initiation & authorization

Bank account, mobile number, QR code

ISO 20022

Message standard

Transactions

439M

2019

965m

2024f

17.1%

F5 Yr CAGR

37%

% of adults who have a mobile wallet and have used it in the past year

Share of volumes by payments instrument

Transactions

2019
2024

Spend (USD)

2019
2024
  • Paper-based payments
  • Electronic payments
  • Immediate payments

Immediate payments volume and its share in overall NON-PAPER-BASED transactions, 2014-24f

% of total electronic payments transaction volume

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.

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