5 Main Payment Methods in Denmark
If you're planning to do business in Denmark, it's essential to understand the most commonly used payment methods in this Nordic nation.
Denmark's advanced digital infrastructure and the Danish penchant for technology have resulted in a unique payment landscape. Welcome to our quick guide where we explore Payment Methods in Denmark, from the widely accepted Dankort card to the popular MobilePay app. By understanding these preferred payment options, you can navigate this cashless society's landscape and enhance your business interactions.
Let's dive in!
5 main payment methods in Denmark
In Denmark, cash is increasingly becoming the road less travelled. According to the Danish National Bank, in 2020, cash payments accounted for less than 10% of transactions. Danes, especially the younger generation, prefer using digital payment methods, making the country one of the most cashless societies in the world.
- Credit and Debit Cards: The most popular payment method in Denmark is the credit or debit card, and one card, in particular, stands out - Dankort. This national debit card is often co-branded with Visa and is widely accepted across the country, both in physical stores and online. However, international cards like Visa, MasterCard, and American Express are also commonly used, especially for online transactions.
- Mobile Payments: Mobile payment apps have also gained significant popularity in Denmark. The most popular among these is MobilePay, a user-friendly app that allows users to make payments with just a mobile number. Developed by Danske Bank, MobilePay is used by more than half of the Danish population. Other mobile payment apps like Apple Pay and Google Pay are also used, but not as extensively.
- Bank Transfers: Bank transfers, especially for B2B transactions, are common in Denmark. Banks offer a variety of digital solutions, including online and mobile banking, making transfers easy and convenient.
- E-Wallets: Though not as prevalent as cards or mobile payment apps, e-wallets like PayPal are used, particularly for cross-border or online transactions. Their usage is expected to grow as Danish consumers continue to embrace digital payment solutions.
- Contactless Payments: Amid the COVID-19 pandemic, contactless payments have surged in Denmark. Many Danes now opt for contactless card payments or use NFC technology on their smartphones for quick, touch-free transactions.
Understanding these payment methods is vital for businesses aiming to succeed in the Danish market. Whether you're setting up a local store or an online business, offering the preferred payment options can significantly enhance your customers' experience and boost your sales. Remember, when in Denmark, think digital when it comes to payments!
| Payment Method | Description |
|---|---|
| Credit or Debit Card | The most popular payment method in Denmark is the credit or debit card, and one card, in particular, stands out - Dankort. This national debit card is often co-branded with Visa and is widely accepted across the country, both in physical stores and online. However, international cards like Visa, MasterCard, and American Express are also commonly used, especially for online transactions. |
| Mobile Payments | Mobile payment apps have also gained significant popularity in Denmark. The most popular among these is MobilePay, a user-friendly app that allows users to make payments with just a mobile number. Developed by Danske Bank, MobilePay is used by more than half of the Danish population. Other mobile payment apps like Apple Pay and Google Pay are also used, but not as extensively. |
| Bank Transfers | Bank transfers, especially for B2B transactions, are common in Denmark. Banks offer a variety of digital solutions, including online and mobile banking, making transfers easy and convenient. |
| E-Wallets | Though not as prevalent as cards or mobile payment apps, e-wallets like PayPal are used, particularly for cross-border or online transactions. Their usage is expected to grow as Danish consumers continue to embrace digital payment solutions. |
| Contactless Payments | Amid the COVID-19 pandemic, contactless payments have surged in Denmark. Many Danes now opt for contactless payments. |
Learn more about localization in Denmark
The Nordic Cultural Localization Guide: Climate and Geography
