Methodology & Glossary
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NORWAY

EUROPE

With two schemes in place and both P27/SCT Inst on the horizon, growth of 185% YOY and adoption across banks, merchants and billers, Norway is a fast-developing IP market.

Its first IP system, Straksbetalinger, was launched by a consortium of banks in Norway in 2013 to enable IP bank transfers in Norwegian krone between participating banks. The central bank is planning to launch an improved version of the system that will follow SCT Inst’s standards. The new system is scheduled to be launched during 2020 and will enable P2P, C2B and B2B transactions.

Mobile payments app Vipps — which DNB Bank launched in May 2015 — is also widely used for mobile IP in Norway. Vipps enables users to make P2P payments as well as online, instore and bill payments using a linked mobile number, though transfers can only be made between Vipps users. Users can fund their payments using their bank account or debit/credit card, but to receive a payment, users must link their bank account with Vipps.

Timeline

2014
March
Straksbetalinger launches
2015
May
Vipps launches
2016
Project to build a new IP system begins
2017
February
Vipps spins off from DNB
2016
November
SPEI extends service again, to 24 hours a day
2020
Launch of Norway’s new IP system expected
2021
November
P27 expected to launch across the wider Nordic region

MARKET DEVELOPMENT

ACCEPTANCE
  • Consumers
  • Banks
  • Merchants
  • Billers

TOTAL PARTICIPANTS

>50,000

Population banking level

3.77

Number of debit, credit and charge cards per adult

151

Index to global average

F

Fully banked

Key statistics

2013

IP launch year

Immediate payments types

Single instance, future data payments

Initiation & authorization

Bank account, mobile number, QR code

ISO 20022

Message standard

Transactions

166m

2019

492m

2024f

24.3%

F5 Yr CAGR

28%

% 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, 2017-24f

% of total electronic payments transaction volume

Insight

In some ways, Norway might not seem like a country set for widespread IP adoption: its population is fully banked, adults have an average of 3.77 cards and paper-based transactions are limited. However, Norway also has an appetite for payment innovations — and IP already has several integrations across segments and in mobile wallets, which are popular with Norwegian adults.

This, along with future P27 participation and the delivery of a new IP scheme integrated into the pan-European SCT Inst network in 2020, will stimulate growth further — most of which will likely occur between 2018-2021.

ACI’s take

Norwegian corporates have typically made Sweden their primary target country to expand into, but the complexity of managing payments between these countries has always been cumbersome and costly.

As P27 takes shape, expect to see Norway place a focus on new B2B and B2C services via digital overlays that will complement Norway’s fully- banked and progressive consumers. P2P and P2C mobile commerce usage is already high, so banks should be thinking about how they are going to spin out additional customer benefit from the P27 initiative. It’s important not to lose sight of the end goal of P27, which aims beyond Pan-Nordic payments. As regional players solidify their new revenue streams, they must consider interoperability with other existing pan-regional schemes, growing into new, innovative markets and adopting successful digital overlay services from elsewhere.

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