The last quarter of the year is a pivotal time for businesses and organisations. As we approach the year-end goals, it’s also a remarkable opportunity to delve into the future of the Nordic financial industry and anticipate what lies ahead in the new year.
At Waytobill, a leading recurring payment solutions provider in the Nordic region, we have the privilege of working closely with esteemed merchants and partners. Their insights combined with our experience allow us to predict the top 2024 payment trends in the Nordics. Let’s explore what’s in store.
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The evolution of payment infrastructure: open banking takes centre stage
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Digital recurring payments gain traction
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Subscription industry: another year of exponential growth
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Swish and Vipps MobilePay increase their market share
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AI full-powers Nordic payments while settling into financial institutions’ operations for good
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BankID continues to bridge generations to a seamless digital identification
1. The evolution of payment infrastructure: open banking takes centre stage
With the cease of the P27 Nordic Payments Platform, the plans for building a new Nordic system critical payment infrastructure have been put on hold, with the focus shifting towards open banking initiatives. Open banking, a system that allows third-party financial service providers to access financial data from various banks, is gaining momentum.
Nordic countries are embracing this concept, fostering innovation and collaboration among traditional banks and fintech startups, leading to the development of innovative payment solutions and services, and creating a more diverse and user-friendly financial ecosystem.
A great example of open banking innovating the financial ecosystem is Waytobill’s Digital Autogiro and Digital AvtaleGiro. The Swedish and Norwegian equivalent of direct debit seamlessly integrated with Waytobill’s checkout enables clients to sign up for recurring payments with just a few clicks, eliminating the need for long paper and web forms, and increasing revenue for organisations opting for this innovative solution.
2. Digital recurring payments gain traction
Nordic customers, renowned for their tech-savvy nature, are swiftly adopting digital recurring payment methods. The straightforward approach to automated payments for essentials like rent, utility bills, and subscription services resonates well with the region’s digitally inclined population. Merchants, recognising the trend, are migrating customers from manual invoices to these seamless systems, enhancing customer retention and lifetime value.
Utilising local direct debit methods like Swedish Digital Autogiro and Norwegian Digital AvtaleGiro, businesses not only boost revenue but also foster customer loyalty while minimalising administrative hassles. This shift signifies a strategic leap towards a more efficient and customer-centric payment landscape in the Nordic region.
3. Subscription industry: another year of exponential growth
The global subscription industry is set to continue its meteoric rise in 2024. The Nordic market won’t be an exception. According to Waytobill’s CEO, Magnus Bendelin, the Nordic region is set to witness 200 million monthly recurring payment transactions within the next five years. Bendelin points out that the majority of the transactions are still invoice-based but with the emergence of recurring payment solutions like Waytobill’s, the majority of subscription transactions will be automated by then. This is significant news for the Nordic market since Nordic customers embrace the concept of subscriptions with more openness. Swedish consumers already spend 8% more on media subscriptions than last year, and audio services have experienced a whopping 12% increase. Subscription models offer profitability to companies and convenience for customers, since subscribers gain access to content, services, or products, with the flexibility to cancel their subscription at any time, empowering them with better control over their finances.
4. Swish and Vipps MobilePay increase their market share
With Nordic mobile payment applications experiencing steady user acquisition, we’re set to see mobile payments accounting for more payments than in the previous year. For example, as of August 2023, Swedish Swish can boast 8,870,456 users, which accounts for more than 83% of the total Swedish population.
With the Danish MobilePay and Norwegian Vipps merging into what we now know as Vipps MobilePay, mobile wallets will become more powerful and inclusive than ever, allowing customers and businesses to operate with seamless cross-border instant transactions.
Despite the absence of official dates, recurring payments within mobile payment apps remain a topic under exploration. Will 2024 be the year we witness the introduction of recurring Swish payments?
5. AI full-powers Nordic payments while settling into financial institutions’ operations for good
AI technology, with its advanced algorithms and machine learning capabilities, has revolutionised the way transactions are processed, monitored, and secured. Nordic financial institutions and payment service providers are increasingly harnessing the power of AI to enhance customer experiences and optimise operational efficiency.
According to research conducted by Accenture, the Nordic financial services sector is among the three industries with the highest AI budget for the next two years.
As we move into 2024, we can expect to see more AI algorithms being employed to analyse transactions to detect patterns and anomalies in order to prevent fraud and safeguard financial assets.
6. BankID continues to bridge generations to a seamless digital identification
In the ever-evolving landscape of digital identification and security concerns, BankID has emerged as the cornerstone of trust and convenience in Sweden. In 2022, 99.2% of Swedish citizens aged between 18 and 65 were already using BankID, utilising the digital identification system 6.7 billion times a year.
As open banking continues to build momentum and offers a significant transformation to many banking and financial services, BankID plays a crucial role in signing agreements, as well as verifying identification for payments. BankID has bridged older generations to embrace digital technologies thanks to its user-friendly interface and widespread acceptance in various services. For instance, BankID is used to sign Digital Autogiro mandates with Waytobill, making the process highly secure.
Do you have questions regarding the anticipated payment trends of 2024? Or maybe you want to find out more about Digital Autogiro or AvtaleGiro? Contact us today!
