Finns have quickly embraced digital payment methods, and their usage continues to grow annually. While traditional payment methods such as cash and payment cards remain popular, digital alternatives have transformed the way payments are made.
The popularity of digital payment methods is evident in the declining number of ATMs visible in Finland’s urban landscape.
Cash is becoming harder to access, and not all stores or restaurants accept it anymore.
A uniquely Finnish feature in digital payments is the prevalence of direct online bank payments. Statistics show that online banking payments account for approximately 57% of Finnish e-commerce transactions, highlighting their dominant position in the market.
Online bank payments are far less popular in other countries, where credit card payments are more commonly preferred. In Finland, there are also some other unique fintech companies, such as Tuohi, Euteller, and Trumo.
Digital payments are growing thanks to smartphones and apps
Smartphones and apps have especially transformed the way Finns pay nowadays. Today, consumers can make purchases quickly and effortlessly with just a few taps or swipes. Thanks to contactless payment features, there’s no need to insert a payment card into a terminal anymore.
Google Pay and Apple Pay enable contactless payments directly through smartphones or smartwatches.
These apps allow Finnish users to link their payment cards to a digital wallet, enabling them to make payments without a physical card.
In addition to smartphones, smartwatches and other wearable devices like Fitbit and Garmin also offer payment apps. Today, Finns can pay with a wide variety of devices, as long as they support NFC payment technology.
The most popular payment services in Finland
Payment services in Finland have evolved rapidly to meet consumer needs, and certain payment methods have become particularly popular.
Online banking payments have long been Finns’ favorite payment method, especially for e-commerce. Statistics show that in 2023, more than half of all e-commerce transactions in Finland were made using online banking payments.
Mobile payments are also widely used. MobilePay has been one of Finland’s most popular mobile payment apps for a long time, but Apple Pay has caught up, especially among iPhone users. Android users, on the other hand, prefer Google Pay, which has expanded its support among Finnish banks.
Invoice and installment payment services, such as Klarna and Jousto, are particularly popular for larger purchases. Klarna is one of the most familiar installment services for Finns and is commonly used in fashion and electronics e-commerce.
Future outlook
The development of digital payment methods continues to advance rapidly in Finland. The future looks promising for both consumers and payment service providers.
The use of biometric identifiers, such as fingerprints and facial recognition, is on the rise in payments. The popularity of mobile payments is also expected to grow further, with an increasing number of stores and services adopting NFC-enabled payment systems.
While the use of cryptocurrencies in payments remains limited for now, their popularity could increase in the coming years if regulations and consumer trust evolve favorably.
In the years ahead, cash usage is likely to continue its decline, bringing Finland closer to becoming a completely cashless society.
HT
