Norway Payments Market | Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

Norway payments market is expected to grow at a CAGR of 15.3 % (2022 to 2027). E-commerce payment preferences are shifting away from cash and credit cards and toward digital wallets and buy now, pay later options (BNPL). Credit cards' dropping share is due to the rise of alternative payment methods, volume transferring to credit- and debit-linked digital wallets, customers choosing interest-free credit in the form of BNPL, and credit-centric sectors like travel recovering from pandemic damage.

Key Highlights

• Online payment and banking have altered the way consumers shop, buy, and pay and how businesses operate. Indeed, online payment has revolutionized both eCommerce and banking. As more companies to launch online, Norway's e-commerce sector is fast growing.
• Apps for mobile banking are becoming more common. App developers can identify the immediate impact of these apps and create them to satisfy the needs of all users. Banking consumers receive the assistance that they never imagined possible because of artificial intelligence. Instead of being forced to visit a physical location, customers now have more options than ever.
• The mobile transaction market has evolved, and more and more service providers are requesting new mobile payment solutions - not only as surcharged text message payments but as accurate mobile payments. Despite the widespread use of credit cards, there is still a substantial amount of cash in circulation. On the other hand, mobile and contactless technology will provide consumers with payment options that are as convenient as cash.

Key Market TrendsAdoption of online mode of Payments

• In Norway's advanced economy, e-commerce is rising at twice the rate of POS. Customers in Norway prefer credit and charge cards over digital wallets. By 2025, bank transfers and COD are likely to lose ground to digital wallets and BNPL.
• In Norway, e-commerce has a well-balanced payment market. By 2020, all banks will be using the long-established Straksbetalinger real-time service, which has enhanced the deployment of Straks 2.0. Most real-time payments are initiated as P2P payments from the Vipps mobile payment app, which processes about half a million transactions per day.

Government Initiatives

• Like many other banking areas, Norway is in the process of designing and implementing upgrades to its local payments, clearing, and settlement infrastructure. Coming from outdated standards to ISO 20022, improving the speedier payment system, and moving closer to SEPA-like standards are all part of this.
• The Nordic real-time payment platform P27, which is scheduled to release in 2022, will provide unified cross-border real-time payments across Sweden, Finland, and Denmark, with Norway being explored later. P27 will offer P2P, P2B, and B2P prices in Nordic markets, including request-to-pay and bill payments, as a joint venture between numerous regional banks. Banks can create apps and offer everyday products and services to consumers, retailers, and companies, including cross-border mobile solutions. More countries may be able to join P27 in the future.

Competitive Landscape

The level of rivalry in Norway's payments market is high due to the presence of a large number of market players. Apart from Visa, some banks enjoy a large company in the payments market, further intensifying the overall rivalry between players. Some of the key players in the Norway payments market are Vipps AS, Nets, and Bank Norwegian.

• March 2022 - Infosys announced its collaboration with Telenor Norway, Telenor's wholly-owned Norwegian telecommunications operator, to transform its finance and supply chain operations. Infosys has implemented a future-proof, standardized Oracle Cloud enterprise resource planning (ERP) solution to help migrate from a legacy ERP system to enhance business agility and operational efficiency.
• January 2020 - Vipps collaborated with China's Alipay to enable its Vipps-payment to be used outside Norway and to open the system up for mobile payments by Chinese tourists visiting the country. This deal makes it easier for Norwegian restaurants, shops, hotels, and tourist destinations to reach the ever-increasing proportion of Chinese tourists to Norway.

Additional Benefits:

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

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