(P2P) Payment apps Maturity of Scandinavian markets

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arkwright.de. Hamburg | Oslo | Stockholm. Market share. iPhone, 2016 2). Gross domestic product. (GDB) in USD, 2015. <
APPLE PAY: Why is Apple Pay not yet on the Scandinavian markets?

arkwright.de Hamburg | Oslo | Stockholm

The mobile payment system Apple Pay has already existed for two years. After initially considering the US and Asian market, Apple is paying special attention to the European markets: ► ► ►

Since summer 2016 Apple Pay has been available in the UK, Switzerland and France In November 2016 Apple Pay also started in Spain and Russia Despite Scandinavia’s mature markets and their pioneering role in mobile payment, Apple Pay has not entered these markets yet

Scandinavian Mobile (P2P) Payment apps

Maturity of Scandinavian markets Number of card payments per inhabitant in nos, 2015 1) Gross domestic product (GDB) in USD, 2015

400

< 500 billion 500 bn–1 tn

Origin Denmark

Origin Sweden

Origin Norway

Origin Finland

Introduced by Danske Bank – partnerships with other banks

Introduced by several banks – e.g. SEB, Nordea, Danske Bank, Swedbank

Introduced by DNB Bank – partnerships with other banks

Introduced by Automatia – owned by several banks – launch in March 2017

1–2 trillion

§

200 > 2 trillion Apple Pay not available

35%

70%

Market share iPhone, 2016 2)

Compared to markets where Apple Pay is already available, Scandinavia performs outstandingly in the factors Card- and iPhone penetration. According to Jennifer Bailey (Head of Apple Pay), these are the important criteria for Apple’s market entry decision. However, the GDP per country is another important criterion which overall is comparatively low in Scandinavia.

2017.03 / Apple Pay Scandinavia

1) 2)

Norway data 2014 Scandinavia data 2015

§ §

Percentage of population using app Transactions p.a. in million PoS acceptance in thousand

66%

n.a.

41%

52%

172 108

74

n.a.

MobilePay

Swish

Vipps

Siirto

37

45

30

n.a.

Local banks have already introduced very successful mobile payment solutions in Scandinavia. The apps started as P2P apps, but are currently evolving into the POS. As Apple Pay requires the cooperation with banks but takes a significant revenue share of the interchange (in contrast to local or international mobile payment services like Samsung Pay), we think Apple Pay will have difficulties gaining a foothold in these markets.

Sources: Arkwright Research, Statista, Federal Agency for Civic Education, MobilePay, Denmark.dk, The Nordic Page, The Guardian, NFC World, Medium, Payment Week, eMarketer, Insider Monkey, InMobi

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