MobilePay has had a great year – to say the least, a fantastic year. With over 425 million transfers in 2022, Danes transferred 158 billion kroner via the app. That amounts to more than 1 million transactions on average per day! This is a new record and underscores how important MobilePay has become as a payment method. Therefore, it's also crucial for you as a business owner to adapt to consumers' increasing tendency to use mobile payments. But why has MobilePay become so successful? We dive into this in this article.
MobilePay, developed and owned by Danske Bank, is an app for making payments with payment cards via smartphones. The app was launched in May 2013 and had already reached 877,000 downloads by the end of that year. Since then, MobilePay has experienced rapid growth, delivering one record-breaking year after another. With the development we’re seeing in mobile payments, there is no doubt that Danes have fully embraced this user-friendly payment method.
Initially, MobilePay was reserved for physical stores, but due to its great popularity, it quickly expanded to online shops. Today, the app plays a central role in online payments. In fact, it has become so popular in e-commerce that Danes now spend more money shopping online with MobilePay than they do in physical stores.
”We have seen good growth in physical stores. But online shopping is growing much faster and developing explosively in recent years,” says Claus Bunkenborg, CEO of MobilePay.
In 2020, MobilePay's e-commerce grew by 86%, and in 2021, it increased by 83%. And generally, more and more MobilePay users are shopping online. In one year, the number of users who shop online has risen from 2.7 million to over 3.4 million. The development is explosive.
But why is the development so explosive? What exactly makes Danes prefer to pay via MobilePay online? That’s the interesting question we aim to dive into.
There could be several reasons. Below, we discuss some of the factors we believe might play a role.
MobilePay is a payment processing agreement, just like Nets, which allows your customers to pay for goods in your store. As a store owner, you can’t do without a payment processing agreement. However, payment processing agreements also come with fees. And that's understandable, as payment processors also need to make money to keep their businesses running. But not all payment processing agreements cost the same. Some are more expensive, while others are cheaper. Perhaps MobilePay has hit the right fee rate?
The speed of transactions can also be very important. Most people want to pay quickly and easily – and that's exactly what you can do with MobilePay. When shopping online, you just swipe to the side, and the payment is completed with MobilePay. It’s super simple, so you avoid two-step approvals and NemID, which provide good security but make the payment process longer...
In the wake of the pandemic, many Danes have realized the significance of import and export for a country. As a result, more people want to support Danish production and, in turn, the Danish economy. MobilePay is made in Denmark, and most people know that it’s Danske Bank behind the invention. Therefore, supporting 'Danishness' could also be a factor.
With a significantly larger need to pay with MobilePay both in physical stores and online, it’s important to adapt to consumers' preferences. Make it easy for your customers by offering them the payment method they prefer to use, and avoid losing a sale. If you have both a physical store and a webshop, it’s a great idea to offer MobilePay as a payment option at both locations, based on the growth of online shopping. This way, you make it easy for your customers to quickly complete the payment process, whether in your store or online.
When choosing a cash register system, it's important to consider whether it accepts the payment solutions you want and need. With the significant growth we're seeing in MobilePay payments, it’s especially important to have this payment option available. Not all cash register systems offer MobilePay as a payment solution, but Shopbox does. With Shopbox’s digital cash register system, you can accept payments from all cards, mobile payments, and online payments. Read all about our payment solutions here.