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A comprehensive overview of the cards, payments and consumer banking market in Denmark. Denmark has a healthy labour market that follows a 'flexicurity' model, mixing a market economy with a strong welfare
state. Under the current legislation, employers are free to hire and fire workers and thus adjust quickly to the needs of the marketplace.
According to a 2018 UBS report, Copenhagen is among the ten most expensive cities in the world in terms of cost of living. Denmark's rapid uptake of new technologies has resulted in an ever-growing e-commerce market. It is estimated that of the 97.5 percent of the population using the internet, over four in every five people shop online.
Denmark is one of the most advanced electronic payments markets in the world. In 2018, the average consumer made over 500 transactions by card or mobile.
Which links in the value chain are being disrupted by new players as cash use plummets.
Why regional payments incumbent Nets is under pressure in areas it once dominated.
How the abolition of surcharging will affect Denmark credit card usage.
Which card types are ripe for co-branding.
What Danes use (and choose not to use) their credit cards for.
TABLE OF CONTENTS
Demographics and the economy
Danish cards market
The networks in Denmark
Key retail banks and issuers
Acquiring and processing
Danish regulatory and other cards market information
Appendices: Denmark card data
Appendix I: Demographics and the economy
Appendix II: Payments environment
Appendix III: Cards market
Appendix V: Profit pool
Appendix VI: The card networks
Appendix VII: Key retail banks and issuers
Appendix VIII: Acquirers and processing
Appendix IX: Online acquiring
Demographics and Economy
With a low growth rate typical of most European nations, Denmark is facing the problem of an ageing population and a shortage of young workers entering the workforce.
Mobile payments are fast becoming the norm, with an estimated 85% of adults now using the method.
Payment cards usage in Denmark is growing strongly. In 2018, total purchase volume on cards stood at $88 billion, representing a growth of 46% since 2012.
Denmark is unsurpassed in Western Europe when it comes to mobile payments, though other Nordic nations such as Norway and Sweden are nipping at its heels for the title.
Although pre-tax profit looks low compared to other developed European markets, the Denmark market has a healthy profit per card.
Most of the traditional banks, including Danske Bank and Nordea, continue to issue exclusively on the Mastercard network, and the network commands a share of over 90% of cards in issue.
Key Retail Banks and Issuers
The Danish banking market is dominated by two international financial services groups: Danske Bank and Nordea Bank Denmark. However, smaller banks such as Jyske Bank, Nykredit and Sydbank also have healthy market shares.
Acquiring and Processing
The merchant acquiring market for credit cards in Denmark is dominated by Nets, which holds an approximately 68% share of all credit card acquired transactions
The most popular e-commerce sites in Denmark include Zalando, eBay, Amazon, Saxo, H&M, Wish and Elgiganten as well as the Nets customers (DBA, JYSK, the national lottery, Silvan and Telia).
Regulatory and Markets Information
On 1 January 2018 regulatory measures were brought in as part of the Danish Payment Services and Electronic Money Act to restrict card surcharges above and beyond the acquiring fee.
Danish Bankers Association
Swedbank Card Services
Reports include detailed market and competitor intelligence on payments cards, e-money, acquiring, retail banking, and consumer credit in Europe. Analysts use primary and secondary source data and conduct in-depth interviews with senior industry executives and finance experts.
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