Financial Card Usage Increases in Denmark Because of Contactless Payments
Financial cards continued to register a positive performance in Denmark both over the review period as a whole and in 2017, with further growth anticipated over the forecast period. This can be attributed to falling unemployment, with Danes subsequently being more willing to spend on their financial cards. The number of cash transactions is falling year-on-year, with financial cards or mobile payments being used even for low value purchases. Mobile payments are increasing as more stores are offering this option.
Debit cards remain the most common type of financial card in Denmark, with Danes always having had a preference for debit cards over credit cards. One trend which is growing and has even become a natural part of many people’s everyday lives is contactless payment. They save time and have become popular among Danes both young and old. Today all newly issued debit cards are contactless, with this feature able to be used on payments up to a value of DKK200. This feature is expected to continue to grow in popularity as Danes get new debit cards and start to appreciate the added convenience of contactless payments.
The most popular contactless card is Rejsekort (travel card), the first one in Denmark. The popularity of the card can be attributed to its convenience and the fact that it can now be used all over the country, unlike previously, on both trains and buses. The card has managed to remain in use in Denmark despite many stories in the media regarding system errors, leading to, for example, incorrect prices, with some people having paid more for their journeys than was necessary. Such reports, however, are rare today, with the Rejsekort having become a financial card for everyday use for many people.
Over the forecast period the financial cards industry in Denmark is expected to remain stable. During periods of low unemployment financial cards tend to perform well, and there are no indications that the level of unemployment will rise over the forecast period. In fact, the opposite is more likely. According to the government’s official advisors, GDP is expected to grow, which should support the use of financial cards. The largest categories, such as debit cards, personal credit cards and pre-paid closed loop cards, are all expected to perform well.