PAYMENTS IN NORWAY
Norway, officially the Kingdom of Norway, is a sovereign and constitutional monarchy with a unicameral Parliament (Stortinget).
Norway is a founding member of the United Nations (UN), the North Atlantic Treaty Organisation (NATO), the Council of Europe and the European Free Trade Association (EFTA). Norway issued applications for accession to the European Union (EU) and its predecessors in 1962, 1967 and 1992, respectively. While Denmark, Sweden and Finland obtained membership, the Norwegian electorate rejected the treaties of accession in referenda in 1972 and 1994.
After the 1994 referendum, Norway maintained its membership in the European Economic Area (EEA), an arrangement granting the country access to the internal market of the EU, on the condition that Norway implements the EU’s pieces of legislation which are deemed relevant.
Successive Norwegian governments have, since 1994, requested participation in parts of the EU’s co-operation that go beyond the provisions of the EEA agreement. Non-voting participation by Norway has been granted in, for instance, the EU’s Common Security and Defence Policy, the Schengen Agreement, and the European Defence Agency, as well as 19 separate programmes.
The adoption of the revised Payment Services Directive, PSD2, and disruptive technologies have set the stage for digital payments for the digital economy in Norway. They have accelerated digital payment transformation and mobile payment services, as well as cardless IBAN-based payments directly from bank accounts.
In the last decade, Norwegian consumers have embraced mobile devices such as tablets, smartphones and Internet of Things (IoT). This change significantly impacts their shopping experience. Consumers are increasingly connected and they have started to purchase anywhere, at any time, from any device.
In addition, new consumer demands are a game changer. Norwegian consumers like digital banking apps with access to all their accounts at different banks in one single app, with the option to make payments directly from their bank account of choice. Additionally, they appreciate more banking services and payment services added to their mobile banking app. Consumer adoption of digital payments in Norway is driven by minimal cost, secure payments and a high level of user convenience.
Driven by the development of social media and mobile devices, the emergence of permanently connected consumers has impacted their interactions with brands but also their expectations of how to shop using the increasing number of touch points between consumers and merchants, e.g.:
- Using mobile devices in-store to look up products or additional information on the internet
- Using mobile devices in-store to shop at the same merchant or online at another merchant
- Using mobile devices to purchase at home in online shops or scan outdoor for advertised products
- Using mobile apps to shop online, or using QR-codes to bridge from merchant posters to their online shops
The ongoing rollout of a mature online and mobile communication infrastructure is an enabler for digital card payment transformation and for Open Banking payments in Norway.
In a few years from now, mobile banking apps and mobile payment apps are expected to combine account management, digital payment services, personal finance management and value-added digital services from location finders to digital vouchers.
Cash payments, card payments and cardless payments directly from bank accounts (A2A payments) all remain relevant for Norwegian merchants and are heavily used by Norwegian consumers.
This country profile provides an introduction into two competing payment ecosystems in Norway:
- Card payment ecosystem
- Cardless Open Banking payment ecosystem
STATISTICAL KEY FIGURES FOR 2020 PROVIDED IN THIS PROFILE:
• UPDATED: tables with card business data 2016-2020; growth rates: Y-o-Y, CAGR
• Population, Cards per Capita, Card Value per Capita
• Debit Cards, Credit/Delayed Debit Cards, Total Cards
• Card payments by number and by value, ATV per card, payments per card/year
• ATMs, POS terminals, ATMs/POS terminals per 1 million capita
• ATM withdrawals by number/by value, ATV per withdrawal, TXs per ATM/month
• POS payments by number/by value, ATV per POS payment, TXs per POS/month
• Internet Use, e-payment mix, B2C e-Commerce by value and growth rate
• Issued Card brands by individual major issuer bank
• Accepted card brands by individual major acquirer
• Drill down into the debit card use and credit cards use details
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Version 1.0 - last updated Wednesday 26th January 2022