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A comprehensive overview of the cards, payments and consumer banking market in Finland. GDP growth is estimated to increase gradually during the forecast period. Key growth levers should be Finland's rejuvenated labour market, increased domestic consumption levels and exports.
Finland's payments ecosystem is highly advanced; use of cash is in constant decline while the penetration rate of electronic payments is increasing. Contactless payments are growing in popularity with 80 percent of all cards having contactless functionality at the end of 2018.
Finland lacks a fully functioning instant payments infrastructure – unlike Denmark and Sweden, for example.
Why credit card profitability in Finland remains high.
How interchange caps have affected the profit pool in Finland.
Which regulatory moves are impacting the market – and payments infrastructure.
How Finns, through apps such as Siirto, are using payment methods.
Where foreign players have been finding market opportunities.
TABLE OF CONTENTS
Demographics and the economy
Finnish cards market
Key retail banks and issuers
Acquiring and processing
Regulatory and other cards market information
Appendices: Payment 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
Employment has increased sharply, and unemployment levels are at their lowest since 2011. Wages have been recovering too, a trend reflected in a 2% increase in average wage levels for 2018.
Credit transfers are the most popular payment method in Finland, whilst card payments continue to increase, particularly contactless card payments as transactions increased 68% and billed volume 75% respectively on the previous year.
Using payment cards for online transactions has gained in popularity, with an increasing number of Finnish consumers purchasing goods and services online. Although most online purchases are funded directly from bank accounts, card payments are also on the rise.
Danish offering MobilePay is the market leader in the space, and there are also several local payment apps available. Some banks, such as Nordea, OP and S-Bank, have their own offerings.
Finland has an established credit card market, which compares favourably with its Nordic neighbours. Despite a consumer preference for debit cards and other forms of consumer credit, market profitability is strong and stable.
Finland's credit cards market is represented in the main by three international brands: Visa, Mastercard and American Express. Visa is the principal debit card network in Finland: at the end of 2018, it had a share of about 85% in terms of card numbers and 77% in terms of billed volume.
Key Retail Banks and Issuers
The leading issuer of credit cards is Nordea, while OP Financial Group is the largest issuer of debit cards in Finland. The top quartet of issuers dominates the market with an estimated 81% of credit cards in issue between them at the end of 2018.
Acquiring and Processing
Nets has an effective monopoly on all merchant acquiring for internationally-branded payment cards in Finland (with the exception of American Express); its merchant services comprise acquiring services for card payment transactions, settlement and payment terminal services and related customer services.
Finland is the smallest e-commerce market in the Nordic region. According to payment gateway Paytrail, it makes up 17% of the Nordic e-commerce market, lagging behind Sweden (37%), Denmark and Norway (both 21%).
Regulatory and Markets Information
Most of Finland's financial regulation is EU based. The union's objective is regulatory harmonisation throughout member states, under the guidance of the European Supervisory Authorities (ESAs) based on the framework provided by Basel III.
André Oscar Wallenberg
Consumer Protection Act
Diners Club International
Discover Global Network
European Banking Authority
European Supervisory Authorities
Federation of Finnish Financial Services
Financial Supervisory Authority
Finnish Payments Council
Finnish-Financial Supervisory Authority
Norwegian Air Shuttle
OP Financial Group
OP Pohjola Group
Parliamentary Commerce Committee
Payment Institutions Act
Payment Services Act
revised Payment Services Directive
Savings Bank Group
SEPA Instant Credit Transfer scheme
Single Euro Payments Area
Skandinaviska Enskilda Banken
Strong Customer Authentication
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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