Consumer and merchant research, conducted by Kantar Sifo and Norstat, on behalf of Nets, reveals near-total dominance of cashless payments in Nordics, driven by contactless mobile payments via global and local providers.
Card payments dominate the Nordic payment landscape, with 90 percent of shoppers using them for contactless payments either daily or once a week. That’s according to new research conducted on behalf of Nets, part of Nexi Group – the European PayTech. Preference for mobile payments continues to increase: in Denmark, Apple Pay is now more popular than Mobilepay; and in Sweden it is almost on par with local mobile payment option, Swish.
The survey of 4,000 consumers and 2,000 merchants also revealed:
- Merchants are much more confident about the future than consumers: a third of merchants forecast a positive business outlook for next year; yet nine in ten consumers expect to spend either the same or less.
- Cards dominate but mobile payments are rising: 76 percent of Nordic consumers use some form of mobile payment in physical sales locations. 12 percent of Nordic consumers state that they only pay with their mobile phone, citing no need for a physical wallet at all.
- 30 percent of Nordic consumers never use cash: This rises to almost half of consumers in Norway and Sweden, despite Norwegian legislation requiring businesses to accept cash payments.
Lars Erik Tellmann, Chief Regional Officer for the Nordics at Nets, commented: “Although rising inflation and interest rates have affected the economy, we can now see that consumer purchasing behaviour has begun to normalise. In physical stores, use of mobile wallets and cards is steadily increasing, reflecting a global shift towards cashless transactions. Countries like Sweden are leading the change, with a strong push to eliminate cash entirely from daily commerce.”
In 2022, mobile payments pushed cash payments into third place among Nordic consumers' most preferred payment methods. This has evolved into a battle between global tech giants Apple and Google, card schemes including Mastercard and Visa, and local, bank-backed brands such as Dankort, Vipps MobilePay and Swish. A joint bank agreement to allow Nordic cross-border local mobile payments is set to fuel this growth further.
Nordic consumers have indicated that choice matters: 63 percent said they have cancelled a purchase due to a merchant not accepting their preferred payment method. However, 54 percent of all Nordic merchants said that they do not currently accept local mobile payment methods, indicating a disconnect between consumer demand and merchant provision.
“Elsewhere, we are seeing significant advancements in payment authentication, digital receipts, and loyalty solutions,” explained Lars, “with demand for innovative approaches steadily increasing. While full implementation is still ongoing, many businesses are recognising the benefits of digital receipts in enhancing customer convenience and reducing environmental impact. Loyalty solutions have also seen substantial progress, with 9 in 10 Nordic consumers enrolled in at least one loyalty program. These loyalty programs are now often linked directly to payment cards, simplifying the user experience, and ensuring rewards are seamlessly earned.”
The full report also provides a sector breakdown by industry, highlighting different payment preferences across verticals like groceries, transport, and hospitality. To find out more, download the full Nets Nordic Payment Report 2024 now.
