November was a new record month for card transactions. And the mobile phone can from next autumn will be turned into the Danes favorite debet card, Dankort.
An agreement between the Danish Chamber of Commerce, banks and Nets ensures that Danes can make contactless payments using their smartphone.
“Dankort on mobile will make life a little easier for the Danes and the shops,” says marketing director for Danish Industry, Henrik Hyltoft.
In mid-August began the banks to issue contactless Dancards, and at the end of November they had already made a million contactless transactions. More than every 10 Dankort/VISA card, or 600,000, are issued with the contactless functionality.
With the development of the card on the phone passes another important milestone in the development of Dankort. This gives the Danes new ways to pay directly from their smartphones, and Dankort’s aim to stay as Danish ‘preferred method of payment strengthens.
“More and more consumers want to pay by phone when they are in store. Therefore, we, together with retailers, wanted to develop a mobile credit card that will work on the terminals the stores already use today,” says marketing director for Danish Business, Henrik Hyltoft.
More than half of all payments with Dankort happens today from terminals that accept contactless payments. Next year they can download an app and pay by Dankort on the phone in the same way as with the contactless cards.
The contactless card technology in the mobile phone is based on a token. This means that the information in the phone, which is exchanged between the telephone and the terminal, does not contain sensitive data.
“It is easy and fast to pay contactless as the increasing number of Danes try it, and clerks become more familiar with the new way to pay. From next autumn they should just bring the phone to the terminal card reader and run a contactless payment. If one trades for up to 200 kr., the PIN code is not entered, as when paying with a contactless card, “says Jeppe Juul-Andersen, Senior Vice President of Nets responsible for credit cards.
The approximately 2 million. smartphones that have an active NFC function can be used for payment as contactless cards. The smart phones that do not have NFC, requires a solution based on QR codes or Bluetooth. The shops must adapt their terminal equipment so that they can accept credit card payments from these phones.
“Dankest is the Danish ‘preferred method of payment, and one of the strengths is that almost everyone has one in his pocket, and almost all shops accept credit cards. Therefore, it is important for us that payments by credit card or cell phone as far as possible work with the terminal-equipment business today, “says Dankort Director.
In 2015 made more than 1.2 billion transactions are expected to take place with Dankort in Danish stores.
Danish ‘use of credit card reached 30.2 billion DKK in November. This is an increase of 8.1 percent, or approximately 2.3 billion DKK compared to November last year.
In Denmark was Dankort consumption on ‘Black Friday’ 29.4 percent above last year.
“Also Cyber Monday after ‘Black Friday’ was busy. Here was the transactions on the internet 14.5 percent above last year’s level. It could indicate that this holiday season has taken off. ” says Jeppe Juul-Andersen.
|Total Dankort payments (million. Transactions)||104,2||96,2||8,0||8,3 %|
|Total Dankort usage (billion. DKK)||30,2||27,9||2,3||8,1 %|
|Credit Dankort physical trade (billion. DKK)||24,7||24,2||0,5||2,1 %|
|Credit Dankort online (billion. DKK) without money transfers via mobile||3,7||3,0||0,7||23,5 %|
|Remittances by Dankort via the mobile (billion. DKK)||1,7||0,7||1,0||–|