Mobile contactless payments to take the Nordics by storm


​The number of contactless payments are on a steep increase in the Nordic region which, incidentally, is the most digitised part of Europe. The significant increase in the uptake of digital payments across Europe, not least in the Nordic region, reflects the fact that consumers increasingly see digital payments as more convenient and more secure than traditional payment methods, according to UK-based Mapa Research.

​As the average Dane waits in line to pay for her lunchtime latte and BLT, chances are the payment will be carried out in a mere second by tapping her contactless debit card at the point-of-sale.

Consumers in Europe are increasingly opting for cashless payments as the number of digital payment solutions offered continue to grow. The Nordic region remains the most digitised part of Europe with more than 94% of the payments in Denmark, Norway and Sweden being made digitally, according to the Norwegian Central Bank.


Preparing the ground for mobile contactless payments

Last summer, Nets launched the contactless national debit card, Dankort, to encourage consumers to adopt new ways to pay. With 1.8 million contactless cards issued so far and 11.5 million transactions made, the contactless Dankort will further drive the move towards mobile contactless payments, as more and more merchants will accept contactless payments and consumers will get used to 'tap and go'.

The adoption rate of the contactless Dankort could bode well for Nets' launch of the mobile contactless Dankort later this fall which, in line with the company's decision to focus on international standards to ensure scalability and adoption, will work on all mobile OS'es, allowing consumers to choose whichever wallet compatible with their hardware. As to merchants, they will be able to accept mobile payments based on existing NFC-based technology as well as BLE or QR code-enabled payment solutions.  


Danish retail getting set for mobile wallets

Coop, which is the second-largest retailer in Denmark, has just entered into an agreement with Nets to work together on enabling the co-operative retailer to accept contactless payments from all types of smartphones by autumn 2016. This means that consumers will be able to pay using their mobile contactless Dankort in the 1,200 stores encompassed by the Coop chain. The agreement with Coop means that Nets will start upgrading the chain's more than 5,000 terminals, enabling them to accept all OEM pays.

"Consumers expect to be able to pay with their Dankort anywhere, also with their smartphones once it's available. Our agreement with Coop is thus key for preparing Danish merchants to accept the mobile contactless Dankort," says Asger Hattel, Group Executive Vice President at Nets' Merchant Services.  


Merchants want secure and user-friendly payments

As mobile solutions continue to grow, upgrading its terminals to accept mobile contactless payments plays into Coop's strategy of attracting newcomers to the co-operative which currently holds a 1.6 million membership in Denmark.

"The agreement will take us into the future and make it easier for our customers to shop in our stores. It will also allow us to get ready for the next step where we'll combine the Coop membership with the mobile," says Jan Madsen, COO, Coop.

Source: Mapa Digital Banking Research