Market Trends of Norway Mobile Payments Industry
This section covers the major market trends shaping the Norway Mobile Payments Market according to our research experts:
Growing Adoption of the Online Shopping among the Norwegian
- Mobile shopping is becoming the norm, and the Omni channel is still a powerful strategy in many segments. On the payment side, the local payment option VIPPS is rapidly gaining traction and winning market share. Data-driven customer focus and partnerships with strong synergies seem to be the fortification strategy for an expected Amazon entry in 2020 or 2021.
- With the high bank, smartphone, and internet penetration, Norway has an excellent infrastructure to support e-commerce merchants. Cards are a priority for online payments. For a long time, Norway has been an affluent market with a major interest in e-commerce and many purchases made from foreign retailers due to geographical and logistical factors.
- According to the data published by Statistics Norway, the share of online shoppers in Norway Films and music purchases had the largest share of online shoppers in Norway as of 2021. While travel services were purchased online by as high as 60 percent of the consumers in 2019, by 2020, this share dropped to 34 percent due to the coronavirus pandemic and remained stable in 2021. Likewise, online shopping for events dropped from 51 percent in 2019 to 12 percent in 2021.
- According to a survey of Norges Bank the previous year, PayPal was the second most common digital payment method in Norway after paying with cards. Vipps was the third most common digital payment method, used by around a third of the respondents.
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Rise of E-commerce Industry In Norway
- Over the past few decades, Norway has been an affluent market with a major interest in e-commerce and many purchases made from foreign retailers due to geographical and logistical factors.
- Payment by debit card and credit card is a preferred option for consumers in Norway, but other electronic and wireless payment options are growing rapidly. Less than 30% of consumers think it is important to have the opportunity to pay via invoice. VIPPS, owned by most major regional banks, is growing rapidly and may already have taken the lead as the preferred payment method. Apple Pay and Pay Pal still have marginal market share.
- Amid growing demand for e-commerce purchases, Norwegian supermarket chain Coop Norge AS launched its online store in November 2021, enabling consumers to purchase grocery items online. Meanwhile, Denmark-based home accessories retailer Søstrene Grene launched its online store in the country in March 2021.
- E-commerce is firmly entrenched in Norway, a country boasting excellent digital infrastructure and comfortable adapting to new technology. Most of the population, 79 %, have already shopped online. With 53 % of transactions completed via mobile, Norway has one of the highest mobile commerce rates in Europe, outranking much larger e-commerce economies such as France and Germany.
