Finland on tract to cashless payment market

A large population using banks, a growing awareness of electronic payments and a well-developed payment infrastructure are driving Finland towards a less cash-dependent society, according to a report of the analytics and data company GlobalData.

As a result, payment card instrument transaction values in the country are set to grow at a compound annual growth rate (CAGR) of 4.6% from €50bn in 2018 to €59.9bn in 2022, said a GlobalData press release.

GlobalData’s latest report, ‘Payments Landscape in Finland: Opportunities and Risks to 2022’ says while the transaction volume of cards are set to register a CAGR of 4.9% between 2018 and 2022, the volume of cash transactions will witness a CAGR of -0.8% during the same period.

“Finland is proving to be a pioneer when it comes to electronic payments, with cashless transactions in the country accounting for almost three quarters of overall payment transaction volume. In addition, the emergence of e-commerce and rising adoption of contactless payments will drive the payment cards market over the forecast period,” said GlobalData Payments Analyst Sowmya Kulkarni.

The report also mentioned that payment cards have become an integral part of day-to-day payments in the country, with nearly 80% of Finns preferring to pay with cards at merchant outlets. Debit cards are the most preferred card type for payments in Finland, with debit card payments accounting for 78% of overall debit card transaction value in 2018.