Stockholm is a FinTech city. Here, we pay everything from our electric bill, our metro tickets, our taxes and even street vendors selling cabbages with our phones. In fact, one fifth of overall FinTech investments in Europe are here. It is no surprise that mobile commerce in the retail sector has also seen an impressive year of growth. The recent release of Visa’s 2016 Digital Payments Study confirms the Nordics are leading the way.
A mobile payment user is defined as someone who uses a phone, tablet, or wearable to manage their money or make a payment in person, online or in an app. With that in mind; 89% of Danes, 87% of Norwegians, 86% of Swedes, and 77% of Finns are now classified as ‘mobile payers’ is not really that shocking. Mobile banking alone would most likely account for a lot of those people.
It is now undoubtedly the norm to use a mobile device for a variety of personal financial services, from payments to banking. The strides taken in the last 3 years should be applauded.
However, current trends show retail apps competing with major mobile wallets. Is convenience a realistic catalyst for a new payment method? Is the ever increasing role of data something that can cause a change in consumer behavior? We believe it’s critical to ask these questions, if ‘mobile’ is to surpass ‘physical’ (as it already has in countless other financial services) what will be the factor that will push the world in to a mass adoption of new technology?
This year’s MCP focuses on the details. The definition of a mobile payment is key. So are physical payments, i.e. ‘in store-have we seen growth there as well? Has it stalled in itS development? What we do know is that online payments have grown, but this was expected. If mobile banking in the Nordics is the trendsetter of success for other countries to follow, where do we go now? What if anything is driving the sector? This, is exactly where MCP 2017 enters.
Stephen Brogarth, Project Director, Copperberg
Lisa Bergström, Director, Copperberg