The Rise of Cashless Payments in the Nordics
The Nordic countries, including Finland, Denmark, Sweden, and Norway, have emerged as global leaders in adopting cashless and mobile payment methods. As per research conducted by payments firm Nexi Group, a staggering nine out of every ten Nordic consumers prefer using contactless payments.
Denmark stands out as the contactless leader among the four countries, with 96% of Danish consumers using contactless payments. Furthermore, 94% of card payments in Denmark are made contactlessly. These impressive numbers indicate the widespread acceptance and convenience of contactless transactions.
Sweden, on the other hand, takes the lead in digital payments overall, with 50% of Swedes never paying with cash. The preference for digital payments reflects the country’s pro-digital mindset and advanced financial infrastructure.
The research data comprises Nexi’s own payment data for the Nordic countries, combined with an annual survey of at least 1,000 consumers from each market. This comprehensive approach ensures accurate insights into the payment behavior of Nordic consumers.
The Shift Towards Digital Wallets
Lars Erik Tellmann, the Chief Regional Officer for Nexi in the Nordics, emphasizes the changing preferences among Nordic consumers. He highlights that while physical wallets were carried for centuries, the advent of mobile phones has transformed the concept of wallet. Nordic consumers now prefer carrying their essentials, such as cash, cards, receipts, and even photos, in digital form on their mobile phones.
Contactless payments provide a seamless and secure payment experience for consumers, thus driving the adoption of newer payment methods like SoftPOS. SoftPOS is poised to revolutionize physical commerce experiences in the coming years, as consumers increasingly rely on their mobile phones for payments.
The Path to a Cashless Future
In comparison to the other Nordic countries, Finland lags behind in embracing cashless payments, with only 10% of the population rejecting cash outright. Nevertheless, Nexi’s research suggests that this trend is rapidly changing, and more Finns are embracing cashless alternatives.
To further accelerate the shift away from cash, Finland will be raising the contactless payment limit without requiring a PIN to €50 starting from 1st January. This measure is expected to encourage more consumers to adopt contactless payments and reduce their reliance on cash.
The Nordic countries serve as a prominent example for the world, demonstrating the benefits and ease of cashless and mobile payments. With their advanced financial systems and a tech-savvy population, the Nordic region is leading the way towards a cashless future.