Market Trends of Denmark Mobile Payments Industry
This section covers the major market trends shaping the Denmark Mobile Payments Market according to our research experts:
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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Remote Mobile Payments would grow at higher pace.
- Denmark's business-to-consumer e-commerce value stands at €15.4 billion, accounting for a 2.9% slice of the European e-commerce sector. While it is a small market, Denmark stands out for consistently posting double-digit e-commerce growth in recent years.
- With Danes spending over 50% more online each year than the average European - €3,345 versus €2,186 makes the country a nation of high spenders. Basket spending is boosted by costly travel expenses such as holidays and flights being among the most popular items to buy online, with 73% of all online shoppers spending in this segment.
- Danish shoppers have access to high-speed internet so that e-commerce sellers can offer high-functionality websites with strong product imagery, video, and other interfaces without fear of poor loading speeds. Denmark has a progressive regulatory regime that has helped boost access to fiber networks, leading to the country being one of the highest broadband penetration rates in the world. Usage is also growing. In 2021, 96% of Danes accessed the internet daily, compared with 89% in 2016.
