Card reigns supreme in Norway, with few individuals using cash on a daily basis and most possessing a minimum of two payment cards. Norway’s strong card and payment industry is the result of a robust economy, an efficient domestic debit card scheme (BankAxept), and increasing consumer appetite for credit. The average number of monthly card transactions and the average annual spend per card is higher in Norway than in more developed markets such as the US, the UK, France, Germany, and Australia.
BankAxept operates on a no interchange fee model and has a strong acceptance network. However, BankAxept cards cannot be used for online shopping and international transactions. This has led to growth in the usage of international schemes such as Visa and Mastercard. Payment cards are thus co-badged with international scheme providers.
E-commerce posted a review-period (2013-17e) CAGR of 14.9%. Norwegian consumers are happy to buy little and often online. Key drivers include a wider selection of goods available than in-store, easy to use online websites, and no duty charged on foreign purchases under NOK350. Conventional payment instruments, including payment cards and credit transfers, remain the preferred payment methods among Norwegian consumers.
A growing preference for cashless transactions coupled with high smartphone penetration has led to a rise in demand for mobile payments. Alipay launched its operations in Norway in September 2017. The country’s first mobile peer-to-peer (P2P) payment solution, Vipps, was launched by DNB in May 2015. More than 100 banks now support this solution, which is used by over 2 million users.
The report "Payments Landscape in Norway: Opportunities and Risks to 2021", provide top-level market analysis, information and insights into the Norwegian cards and payments industry.
This report provides the following analysis in-depth -
- Current and forecast values for each market in the Norwegian cards and payments industry, including debit, credit, and charge cards.
- Detailed insights into payment instruments including credit transfers, direct debit, cheques, cash, and payment cards. It also, includes an overview of the country's key alternative payment instruments.
- E-commerce market analysis and payment methods.
- Analysis of various market drivers and regulations governing the Norwegian cards and payments industry.
- Detailed analysis of strategies adopted by banks and other institutions to market debit, credit, and charge cards.
- The uptake of alternative payments among Norwegian consumers is gaining traction with the emergence of a number of payment options. In September 2017, Alipay was launched in Norway, helping Chinese tourists visiting the country to make payments at partnered networks.
- DNB launched the country’s first mobile P2P solution, Vipps, in May 2015. Payments can be made to the recipient’s mobile number without the need for bank account details. Users need to link together their mobile number, debit card, bank account, and national identity number to use the service. To ensure a comprehensive single mobile wallet was available to Norwegian consumers, DNB entered into agreements with various service providers to ensure the widespread application of Vipps. In February 2017, 106 Norwegian Banks joined Vipps.
- While not a member of the EU, Norway is party to the European Economic Area (EEA) Agreement. As such, financial market legislation mandated by the EU has to be transposed into Norwegian law. The revised Payment Services Directive (PSD2) was laid out in December 2015, with an implementation deadline of January 2018. PSD2 will update and strengthen the regulations relating to the authentication standards required to make payments. This will include banks adhering to API and third-party account access standards. The aim of the regulation is to simplify payments and accelerate innovation.
- Make strategic business decisions, using top-level historic and forecast market data, related to the Norwegian cards and payments industry and each market within it.
- Understand the key market trends and growth opportunities in the Norwegian cards and payments industry.
- Assess the competitive dynamics in the Norwegian cards and payments industry.
- Gain insights into marketing strategies used for various card types in Norway.
- Gain insights into key regulations governing the Norwegian cards and payments industry.
- Market Overview
- Executive Summary
- Card-based Payments
- E-commerce Payments
- Alternative Payments
- Payments Infrastructure & Regulation