Norway

As with the rest of the world the number of cash payments has been declining in Norway for many years, what is interesting is that for such a low cash use (currently less than 3% of all payments) there is still a healthy coverage of ATMs with Norway ranked 8th in the world with 1 ATM for every 1,125 adults.

Whilst not the best indicator of the quality of financial services in a country (for example, some countries with a relatively low number of ATMs per person, such as Kenya and Bangladesh, have made significant progress in recent years in expanding access to financial services through mobile banking) it is clear that cash remains an important payment method in Norway, It is especially important for small businesses and businesses in rural areas. It is also a good option for people who want to avoid paying transaction fees associated with digital payments.

According to Norges Bank, in 2022, there were an estimated 200 million cash payments made in Norway, which means that on average they make just under 1 payment per person per week. This is in contrast to the UK where we still make nearly 3 payments per week per person.

The Norwegian payments market is dominated by a few major players, including:

Nets is a Nordic payment processor that provides a wide range of payment services, including card processing, point-of-sale (POS) terminals, and mobile wallets.

Vipps is a mobile payment app that is owned by Norwegian banks. It is the most popular mobile payment app in Norway, with over 4 million active users.

Bank Norwegian is a Norwegian bank that specialises in credit cards and travel insurance. It is one of the largest credit card issuers in Norway.

Klarna is a Swedish fintech company that offers a variety of payment services, including buy now, pay later (BNPL) and online checkout solutions.

PayPal is a global online payments system that allows users to send and receive money online.

The Norwegian payments market is highly regulated by the Financial Supervisory Authority of Norway (Finanstilsynet). Finanstilsynet is responsible for ensuring that the Norwegian financial system is stable and efficient, and that consumers are protected.

The Norwegian payments industry is undergoing a number of trends, including:

E-commerce is growing rapidly in Norway, and this is driving demand for digital payment methods businesses that can provide payment solutions for e-commerce businesses are well-positioned to benefit from this growth.
New payment technologies, such as contactless payments and QR code payments, are becoming increasingly popular in Norway. Businesses that can develop new payment technologies that are secure, convenient, and affordable are well-positioned to succeed in the Norwegian market.

There is a small but growing population of unbanked and underbanked people in Norway. Businesses that can provide payment solutions for this population have an opportunity to grow their customer base. According to a 2023 report by Finanstilsynet, 12.25% of the Norwegian population is underbanked. This means that they do not have access to a basic bank account or other financial services. It is disproportionately made up of young people, immigrants, and people with low incomes. These groups may face barriers to opening a bank account, such as a lack of documentation or a negative credit history.
The Norwegian government is working to reduce the number of underbanked people in the country. In 2021, the government introduced a new law that requires banks to offer basic bank accounts to everyone, regardless of their income or credit history. The government is also working to raise awareness of the importance of financial inclusion and to help people access the financial services they need.
The Norwegian payments industry is a highly developed and competitive market. There are a number of opportunities for businesses in this market, but there are also a number of challenges. Businesses that are able to develop new and innovative payment technologies, provide payment solutions for e-commerce businesses, and target the unbanked and underbanked are well-positioned to succeed in the Norwegian payments market.