The National Bank of Denmark published an analysis of Denmark’s retail payments market, finding that the rapid shift toward mobile wallet payments is reshaping card payments and making it relevant to adjust existing regulation to support secure, resilient and efficient retail payments. The analysis also points to wider use of instant-payment based solutions as a way to increase efficiency and reduce single points of failure in the retail payments ecosystem. In stores, nine out of ten payments are digital, and mobile wallet payments now account for around one in three payments in physical commerce. International debit cards from Visa and Mastercard are now the most widely used payment cards, while Dankort’s share is declining, with implications for both socio-economic costs and market structure. The analysis highlights that Dankort remains typically the cheapest card for merchants to accept because its merchant service charge in physical and serviced retail is subject to Danish pricing regulation, but notes potential downsides in the current setup, including Nets’ position as the sole acquirer of Dankort and its large share of card acquiring in Denmark. It also notes that instant payments are already widely used in Denmark, but that credit-transfer based solutions account for only a small share of in-store and online merchant payments, with broader adoption potentially improving resilience by relying on different infrastructure than card payments. On policy direction, the analysis references a draft legislative amendment sent for consultation by the Danish Financial Supervisory Authority in late 2024 that would clarify payment-system access for payment service providers, intended to support a level playing field for acquiring including for Dankort. It also notes that the Ministry of Industry, Business and Financial Affairs has indicated further initiatives, including changes to the current Dankort price regulation, while payments infrastructure changes and new solutions are expected to support instant payments, including Denmark’s planned migration of Danish krone settlement to TARGET Services from Easter 2025 and MobilePay’s expected launch of contactless in-store payments based mainly on instant payments during 2025.
National Bank of Denmark 2025-02-05
National Bank of Denmark analysis calls for updates to Dankort regulation as mobile wallets and international cards gain share
The National Bank of Denmark's analysis highlights the growing dominance of mobile wallet payments and the need to adjust regulations for secure transactions. It notes the decline of Dankort's market share despite cost advantages and the benefits of broader instant-payment adoption. The analysis references a draft legislative amendment to clarify payment-system access and initiatives to enhance payments infrastructure, including migration to TARGET Services and MobilePay's launch of contactless payments.