News
Times are changing in the market for payment services
New EU rules on payment services are expected to pave the way for more and innovative payment services. This could lead to lower costs for both stores and consumers.
Head of Division at the Danish Competition and Consumer Authority, Martin Nyvang says:
"The new rules pave the way for innovative minds able to increase competition for both the best solution and the best prices for payment services. Potentially, this is a gain for both businesses and consumers."
"It is important that both stores and consumers do not rest on their laurels and instead focus on exploiting the new opportunities for finding the best or cheapest option. In this way, they will contribute to increased competition in a relatively fixed market characterised by a few large providers."
From June 9, both shops and consumers can expect to choose from a range of new payment options as a result of new EU rules.
The new rules for payment cards can open up the market to new payment service providers, allowing Danes to see new and expanded combinations of brands for their credit cards. At the same time, consumers should be able to choose which part of their payment card they prefer to pay with, provided the shop accepts the card.
More effective competition on i.a. consumer fees and transaction costs for businesses would then contribute to a market, which, so far, has been dominated by a few large providers.
Dankort is still, by far, the most widely used payment card in Denmark. In 2015, 1.2 billion transactions were carried out using the 5.8 million Dankort cards or Visa/Dankort cards. In comparison, international payment cards - such as MasterCard and Eurocard – accounted for 342 million transactions.
The new rules also means that neither banks nor acquirers of payment cards (e.g. Nets) are allowed to decide which part of a payment card - typically Visa or Dankort - the consumer has to use in individual shops.
It is still not allowed to oblige shops to offer multiple payment services from the same provider if, for example, they are only interested in one.
For further information, contact Communications Manager at the Competition and Consumer Authority Hanne Arentoft by telephoning +45 41 71 50 98.
Read the Danish Competition and Consumer Authority’s full analysis "The payment cards market in 2016"