Norway POS Terminals Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Norway POS Terminals Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Norway POS Payment Market is expected to grow at a CAGR of 10.86% during the forecast period 2022-2027. The card remains the dominant payment instrument in Norway, with more than half of the population bearing three cards at a time.

Key Highlights

• Ready access to formal financial services has resulted in a population that is highly comfortable with payment cards both in-store and online. As a result, the consumers embraced debit cards and BankAxept at the core of the payment market.
• Electronic payments have also gained ground due to the government’s substantial investments in building long-term infrastructure for cashless transactions. Contactless card numbers and use have seen healthy growth in the past few years, with the vast majority of contactless users in the country seeing the cards as helpful.
• The growing use of debit cards at POS terminals has been supported by BankAxept’s zero-interchange-fee model, which enables merchants to accept debit cards at lower costs. To drive debit card use, BankAxept offers contactless debit cards that enable holders to make payments of up to NOK400 (USD 46.22) without entering a PIN.
• A bank survey conducted by Norges bank suggested that 4% of survey participants used cash in their most recent payment at a physical point of sale. This figure has remained stable since the outbreak of the pandemic in spring 2020. The number of ATM and POS cash withdrawals has continued to decline, albeit somewhat less in 2021 than in 2020. The value of withdrawals from ATMs has also continued to fall but the value of POS withdrawals has increased somewhat.

Key Market TrendsFixed Point of Sale to Show Significant Growth

• The fixed Point of sale terminal is back on the trend with the economy slowly returning back to normal. Its quite evident from the data provided by the Norges Bank survey which suggested that out of 2.58 billion card transactions in 2021, 1988 million, or 77%, were made at physical payment terminals (EFTPOS-terminals7 ). In contrast, 1941 million such payments were made in 2020.
• Further, the survey also suggested that in 2021, 1602 million (81%) of payments at physical points of sale were contactless payments. The average value of contactless payments was NOK 344.
• The extensive use of cards among the Norwegian population is further driving the demand of Fixed point of sale in retail and healthcare industries. At end-2021, the total number of Norwegian payment cards issued stood at 12.9 million. The most widely used card type is a card combining BankAxept with an international debit card, usually Visa or Mastercard. 57% of cards issued are of this type. The next most widely used card type is international credit cards, which account for 39% of cards.

Retail Industry to Hold the Highest Market Share

• The expansion of the retail sector is expected to lead to growth in the number of POS terminals. Further, retailers are aiming at an innovative and modern point of sale system without having to battle an ascending level of organizational change processes and the associated high investment costs.
• Recently, Monsoon Accessorize Norway chose Front Systems when contemplating a point-of-sale system for its 9 Norwegian stores. The Norwegian supplier made the cut with its secure, flexible, and easily integrable system.
• Companies such as iZettle offer two types of mPOS terminals: Lite and Pro. The terminal can be connected to a tablet or mobile phone, while the Pro can be connected wirelessly via Bluetooth. Pro also has a separate built-in screen.
• To compete with iZettle, Nets launched its mPOS terminal, Nets Miniterminal iCMP which works via an app on a smartphone and tablet. The Nets Miniterminal iCMP mPOS terminal accepts BankAxept, Visa and MasterCard-branded cards, while iZettle mPOS terminals accept Visa, MasterCard, VPay, Maestro, JCB and Diners Club, but do not accept BankAxept.

Competitive Landscape

The Norway POS Terminals market is moderately competitive and consists of major players. In terms of market share, few of the major players currently dominate the market. However, with extensive value added services such as buyback options, credit points and easy installment schemes has pushed consumers to opt for POS terminal purchases through Mobile POS systems among others. Many of the companies are increasing their market presence by securing new contracts and by tapping new markets.

• July 2022 - Confirma Software announced the acquisition of Nutid AB, the developer of the Vendolink POS solution. The Vendolink customers will get access to a broader range of cloud-based POS solutions through the existing solutions offered by other Confirma Software companies such as Crona and DL Software.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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