Nordic Leads Global Shift Towards Contactless Payments

Nordic countries are setting a remarkable pace in the global transition towards cashless payment methods, according to recent research conducted by Nets, a part of the European PayTech group Nexi Group, as highlighted in Fintech Global news. The study reveals a significant decline in the use of cash among Nordic consumers, with nearly one-third of them indicating that they no longer utilize cash for in-store purchases.

Nets’ most recent Nordic Payment Report, carried out in collaboration with Kantar Sifo, has unveiled several noteworthy findings:

• Swedes Lead the Way: Sweden is at the forefront of this cashless revolution, with almost half of its population stating that they never use cash. In comparison, 40% of Norwegians, 27% of Danes, and a mere 10% of Finns report similar behavior. Notably, Finland appears to be rapidly catching up in its move away from cash.
• Rise of Mobile Payments: Mobile payments are experiencing a surge in popularity across the Nordic region, with approximately 20% of both Danish and Swedish consumers preferring this mode. Apple Pay has established a significant presence in digital payments in Denmark and Sweden. However, local brands like Sweden’s Swish, Norway’s Vipps, and Denmark’s MobilePay continue to dominate consumer preferences.
• Contactless Payments Take the Lead: Boosted by the popularity of contactless techniques, mobile payments have now surpassed cash to become the second most favored payment method in the Nordics. Card payments, however, retain their position as the most preferred choice among consumers.

Lars Erik Tellmann, Nexi’s Chief Regional Officer for the Nordics, commented on this remarkable shift, saying, «We’ve carried physical wallets for centuries, carrying cash, cards, receipts, and photos of loved ones with us wherever we go. Today, Nordic consumers are increasingly opting for their mobile phones to serve as this wallet, digitizing their essential items. Contactless payments offer a seamless and secure payment experience for consumers while enabling innovative payment methods like SoftPOS, which are poised to revolutionize the physical commerce experience in the years ahead.»

The Nordic countries are leading the way in the global transition to cashless payments, with contactless and mobile payments gaining significant traction. This shift is driven by the convenience, security, and efficiency offered by digital payment methods, setting a precedent for the rest of the world to follow.