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Consumer Payments:Norway

Consumer Payments: Norway

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Consumer Payments:Norway

  1. 1. © FEXCO 2016. All rights reserved - In commercial confidence Consumer Payments Country Snapshot: Norway 16/10/2016 Source: verdict Financial
  2. 2. © FEXCO 2016. All rights reserved - In commercial confidence Payment card ownership & use in Norway is high 2 The card remains in a strong position in Norway with only 6% of the population using cash on a daily basis, and most possessing a minimum of two payment cards. Although the market is one of the most mature in the world – there are 126 POS terminals per person. Contactless cards, introduced in 2014, have witnessed a fast uptake with 40% of Norwegians now possessing one. Contactless PaymentsE-commerce/M-Commerce Credit card use in Norway is high by international standards, although it falls short of pay-now card usage domestically. To entice new customers, cashback offers are the most popular incentive. Credit Cards Online shopping is well established in Norway, and the NOK112bn spent in 2015 is set to double over the next five years. Both e-commerce and m- commerce will record similar CAGR’s over the next five years. DebitCredit 38% 12% 11% 26% 16% 11% Quick Facts Cards per consumer in Norway Cards in Issue in 2015 Cards in circulation by 2020 2.8 15m Quick Facts (by value spend) Food & drink Flights & hotels Clothing & footwear Electrical GoodsFlights & hotels Food & drink Roll out of contactless and NFC- enabled payment terminals has been slow. For greater level of consumer uptake payment providers will need to invest in upgrading merchant terminals. 18m
  3. 3. © FEXCO 2016. All rights reserved - In commercial confidence Inbound Tourism - Norway 2014: 31.6 million visitors 2014: NOK30.8 bn spent by tourists
  4. 4. © FEXCO 2016. All rights reserved - In commercial confidence Payments Infrastructure 4 AcquirerIssuer Top 3 Merchant Acquirers in Norway: 1.Swedbank 2.Nets 3.Handelsbanken Nets acquired Nordea’s merchant acquiring business in late 2015 making it the largest merchant acquirer in Norway Top 4 Card Issuers in Norway: 1.DNB [5.1m cards] 2.Sparebank 1 Gruppen [3.5m cards] 3.SEB Kort [0.9m cards] 4.Nordea [0.9m cards] Schemes Visa handles all foreign transactions on behalf of Bank Axept – the sole issuer of debit cards in Norway explaining the popularity of Visa Top 4 Card Schemes in Norway: 1.Visa [6.2m cards] 2.Bank Axept [5.3m cards] 3.Mastercard [2.7m cards] 4.American Express [0.4m cards] 60% of all cards in Issue (2015) 42% 18% 36% 34% 38% DNB Market Share Debit card Credit card Charge/deferred
  5. 5. © FEXCO 2016. All rights reserved - In commercial confidence Market Size and Forecasting 71% market share 10.5m cards (2015) 12.8m cards (2020) Debit 27% market share 3.9m cards (2015) 4.8m cards (2020) Credit 46 times on average NOK699 per POS transaction Pay later cards are being used to pay for a greater number of items more often – further evidence that card payments of all types are replacing cash transactions in Norway. 168 times on average Increasing frequency of use and declining average transaction value signify pay-now cards are being used for small ticket items. It is claimed Norway could be a cashless society by 2020. NOK346 per POS transaction 5 Now Future Debit Credit
  6. 6. © FEXCO 2016. All rights reserved - In commercial confidence Norway has one of the highest POS- terminal-to-citizen rations globally with 153,000 POS terminals and 19,500 ATM’s in operation in 2015. POS terminal growth since 2010 recorded a CAGR of 4%. Banks have been removing ATM’s and making some branches cashless – 2020 is when leading banks want Norway to become cashless. POS Terminals 153 thousand 19,500 ATM’s 15.4% CAGRR 2015-2020 E-COMMERCE 16.0% CAGRR 2015-2020 M-COMMERCE 6 The Online commerce market in Norway is higher than any other Nordic nation with online payments in Norway accounting for NOK112 billion in 2015. This is forecast to grow by almost 100% by 2020. 76% of online commerce sales in Norway are e-commerce . POS – ATM Overview Online E-commerce
  7. 7. © FEXCO 2016. All rights reserved - In commercial confidence E-commerce and M-commerce Mobile Proximity Payments The mobile proximity payment market is developing quickly in Norway 24% 1.14 million Smartphone owners A modest opportunity for NFC-based mobile payment service 32% are ready for mobile payments at the POS as soon as they are available expressed interest in making contactless payments via a mobile phone 7 NOK 41.5 bn Worth of transactions were made using credit and debit cards in 2015 Online spend by payment tool