The Nordic region, renowned for its advanced digital adoption, has seen recurring payments lag behind, with an unexpected volume of invoices still in circulation despite more efficient payment methods being available. However, a transformation is on the horizon, and we foresee a substantial shift towards automated recurring payments in the near future.
1. Open Banking: The Key to Digitalizing Recurring Payments
Open banking has been a part of the Nordic financial landscape for several years, yet its transformative potential for recurring payments is just beginning to unfold. By embracing open banking, businesses can streamline the onboarding process for direct debit, significantly reducing their dependence on invoice-based payments. Waytobill leverages this innovative technology to digitalize direct debit sign-ups, ensuring the process is as straightforward and efficient as possible.
The advantages of open banking for businesses are substantial: a potential sales increase of up to 10%, an extension of customer lifetime by more than 25%, and a reduction in administrative costs by at least SEK 20, with the possibility of exceeding SEK 40 per transaction.
Read more here and here.
2. Recurring Swish: A Game-Changer in the Swedish Market
Swish's recent announcement to introduce a recurring payments option marks a significant milestone in Sweden's evolving payments landscape. This innovative development is poised to make a substantial impact, particularly in sectors such as nonprofits, where streamlined payment experiences are crucial. Recurring Swish is set to become an essential tool for businesses aiming to enhance their payment processes.
While Swish has launched this groundbreaking product, its full operational capability hinges on adoption by all Swedish banks, a process anticipated to take at least 12 months. In the interim, we advise businesses to begin preparations for Swish's rollout in 2025. For more insights on the upcoming Swish launch, visit our Waytobill blog.
3. Vipps/MobilePay: Growing Nordic-Wide Reach
Originally a pioneering mobile payment solution in Norway, Vipps has now made its mark in Sweden and is experiencing rapid growth in Finland, where Vipps/MobilePay has already captured the attention of over 35% of the population.
The strategic merger of Vipps and MobilePay provides both consumers and businesses with a cohesive payment method throughout the Nordics, presenting a robust alternative to Swish. With a strong foothold in Norway and Denmark, where more than 75% of the population utilizes the service, the expansion of Vipps/MobilePay heralds a promising era of healthy competition, fostering innovation and offering enhanced options for Nordic consumers.
Read more about Vipps here, here, and here.
4. Digital Direct Debit: A New Era for Finland’s Recurring Payments
Until recently, Finland stood out as the only Nordic nation without a direct debit solution for recurring payments, relying instead on e-invoices that required consumers to set up through their online banking.
With Waytobill's innovative introduction of Digital Direct Debit to Finland, the payment process is now streamlined, allowing consumers to effortlessly sign up at the point of sale and enjoy a fully automated experience thereafter. This advancement not only boosts conversion rates but also empowers businesses to leverage the advantages of automated payments.
While initial adoption may be gradual compared to other Nordic countries, Finnish consumers are renowned for their embrace of efficient, digital solutions. Therefore, we anticipate Digital Direct Debit will gain significant traction and importance in the Finnish market.
Nordic Recurring Payments in 2025: Key Trends Driving the Digital Shift
In conclusion, the Nordic recurring payments landscape is poised for a significant transformation, with innovations such as open banking, Recurring Swish, and the expanded reach of Vipps/MobilePay paving the way for a fully digitalized payment environment. These advancements are set to streamline processes, boost customer retention, and lower operational costs, particularly as Finland embraces Digital Direct Debit. As the demand for seamless and efficient recurring payments continues to rise, Waytobill is committed to empowering businesses to leverage these tools, enhancing customer experiences and maintaining a competitive edge in 2025 and beyond.
