When it comes to paying in Nordic countries - Norway, Sweden, Finland, Denmark and Iceland - cash is a thing of the past. In Sweden, for example, cash and coins comprise just 2% of the country’s economy, compared with 7.7% in the US and 10% in the Euro area. And when you consider that Denmark recently made a goal of “eradicating cash” by 2030, there’s no doubting that the Nordics are leading us towards a cashless world.
In the online realm, Nordic consumers largely prefer to use credit cards and online banking e-payments which let them pay directly from their bank account using their familiar online banking login details. In Denmark, card payments are a popular choice, whereas in Finland, nearly 40% of eCommerce purchases were made via online banking e-payments in 2014.
For online retailers, the benefits of paying via online banking e-payments are great as both the consumer and the availability of funds are authenticated in real time, meaning there’s virtually zero risk of chargebacks and the merchant is guaranteed payment. Plus, offering a preferred payment method in the checkout increases sales conversions.
For consumers, there’s no need to set up an account since they are already a member of the bank and their online banking interface through which they authenticate the payment is familiar. It’s simple, safe and fast, making online banking e-payments a preferred payment method for Nordic consumers shopping across Europe.
Given that the Nordics are known for being early adopters of technology, their preference could suggest large-scale adoption of online banking e-payments in other parts of the world in the coming years. Being ready to accept this preferred payment method could put your business at a great advantage.