A new report detailing the payment habits of consumers in the Nordic countries has been published by Nets, part of the European paytech, Nexi Group. It has revealed that while card payments dominate the payment landscape, mobile payments are on the rise.
The new research surveyed 4,000 consumers and 2,000 merchants, exploring the different attitudes towards the payments market. Merchants are much more confident about the future, with around 33 per cent forecasting a positive business outlook. Meanwhile, 9 in 10 consumers are expecting to spend the same or less.
Breaking down payment preferences, Nets found that 76 per cent of Nordic consumers use some form of mobile payment in physical sales locations. Furthermore, 12 per cent of Nordic consumers state that they only pay with their mobile phone, citing no need for a physical wallet at all. Interestingly, 30 per cent of Nordic consumers never use cash. This rises to almost half of consumers in Norway and Sweden, despite Norwegian legislation requiring businesses to accept cash payments.
In 2022, mobile payments pushed cash payments into third place among Nordic consumers’ most preferred payment methods. This has evolved into a battle between global tech giants Apple and Google, card schemes including Mastercard and Visa, and local, bank-backed brands such as Dankort, Vipps MobilePay and Swish. A joint bank agreement to allow Nordic cross-border local mobile payments is set to fuel this growth further.
In Denmark, Apple Pay is now more popular than Mobilepay; and in Sweden it is almost on par with local mobile payment option, Swish.
Lars Erik Tellmann, chief regional officer for the Nordics at Nets commented: “Although rising inflation and interest rates have affected the economy, we can now see that consumer purchasing behaviour has begun to normalise. In physical stores, use of mobile wallets and cards is steadily increasing, reflecting a global shift towards cashless transactions. Countries like Sweden are leading the change, with a strong push to eliminate cash entirely from daily commerce.”
Payment options are important
Nordic consumers have indicated that choice matters: 63 per cent said they have cancelled a purchase due to a merchant not accepting their preferred payment method. However, 54 per cent of all Nordic merchants said that they do not currently accept local mobile payment methods. This indicates a disconnect between consumer demand and merchant provision.
“We are also seeing significant advancements in payment authentication, digital receipts, and loyalty solutions,” explained Tellmann, “with demand for innovative approaches steadily increasing. While full implementation is still ongoing, many businesses are recognising the benefits of digital receipts in enhancing customer convenience and reducing environmental impact.
“Loyalty solutions have also seen substantial progress, with 9 in 10 Nordic consumers enrolled in at least one loyalty program. These loyalty programs are now often linked directly to payment cards, simplifying the user experience, and ensuring rewards are seamlessly earned.”
Francis Bignell
