Denmark Mobile Payments Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

Market Overview

The Denmark mobile payments market is anticipated to register a CAGR of 22.9% from 2022 to 2027. The market comprises players offering mobile applications used for making payments. Denmark is a mature market for mobile payments, as the country for one of the earliest adopters to introduce mobile payments.

• The internet is evolving with more e-commerce platforms coming into existence. The ecosystem is developed through joint venturing between financial banks, payment gateways, and service providers for the App, making way for mobile payments. The introduction of NFC as a wearables and incorporation option and other technologies into the connected devices has considerably eased the mode of payment. The inclusion of virtual assistants and mobile payment app compatibility with them is also mostly end-to-end encrypted to provide state-of-the-art security and reliability.
• However, high internet cost is leading to decreased mobile payment use. According to Proofpoint, The price of Internet 8 Mbps (1 month) in Copenhagen is kr147. Thus, it creates a serious need for cost cuts in internet prices to increase access to be offered by mobile payments companies, ensuring safe and protected payments.
• COVID-19 pandemic proved to provide a boost for mobile payments. In Denmark, users were aware of avoiding payment modes, including physical contact with the commonly touched points in the general environment. The contactless payment offered by mobile payments helped make payments even during the lockdowns. Many online e-commerce platforms enabled mobile payments during the pandemic, which gave it a great push to become the new norm.

Scope of the Report

Mobile payments refer to the different media of payments through software as a service in the smart electronic devices, including smartphones, smart wearables, or any other device facilitating the supported operating system. The payment can be made in real-time or remotely through the cloud setup.

The Denmark mobile payments market is segmented by type (Proximity Payment and Remote Payment).

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Key Market Trends

High internet penetration and high smartphone usage encourages mobile-commerce

• As per the JP Morgan report series, Denmark has the highest smartphone penetration of all European countries, at 78.2%. The mobile commerce market is worth €4.9 billion in Denmark, but only 32%of sales are completed on a mobile device, and consumers still associate e-commerce with PC. As merchants decrease the gap between smartphone ownership and smartphone e-commerce, growth in the sector is expected to accelerate, expanding at an expected compound annual growth rate of 16.8% to become a €9.1 billion market by 2021.
• Keeping this potential growth in mind, now e-commerce sites are optimized for smartphones, helping capture impulse purchases, which are common in the country, via smartphone. For instance, common reasons cited for choosing to use a smartphone to buy an item include it being the closest available shopping device at the desired point of sale, being on an app at the end of buying, or opening up an offer on a smartphone e-mail and following through on this to complete the transaction.
• Further, Improved internet access should help the e-commerce market expand at its expected compound annual growth rate of 10.5% up to 2021. Online e-commerce merchants are better positioned than physical sellers trying to take a share of this growth as they now have more than 50% of the Danish e-commerce market, despite domestic omnichannel retailers investing in their e-commerce channels.
• Denmark’s e-commerce market is also changing its course in the increasingly outward-looking nature of its shoppers. International e-commerce brands are swiftly gaining ground on local firms, which previously dominated most sales. In Denmark, German fashion platform Zalando is the most-used e-commerce site in the country and, in 2017, overtook former favorite Swedish electronics firm, Elgiganten. These stores’ offerings indicate where Danish consumer interest lies: clothing and footwear are among the most popular shopping categories online, as are electronics.

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