What’s the current situation?
The payment landscape has changed significantly in recent years. MobilePay, Apple Pay, and Google Pay have seen rapid growth as alternatives to physical payment cards. According to Quickpay’s Index nearly half of all online payments today are made via mobile wallets.
The rise in mobile payments has shifted the market, requiring existing regulations to adapt to support secure, robust, and efficient retail payments in Denmark. This was highlighted in an analysis published by the National Bank of Denmark on February 5th.
According to Nets, which has a monopoly on Dankort, the increasing use of mobile payments has reduced the card’s popularity. Esben Torpe Jørgensen, the Director of Dankort at Nets, stated in an article in Børsen (February 6, 2025) that the decline is significant.
What’s the problem?
Currently, Nets is the only provider managing Dankort payments, both in physical stores and online. This means they oversee the entire transaction process, from the customer’s purchase to the transfer of funds into the merchant’s account.
The proportion of Dankort payments in physical stores has decreased from 75% in 2017 to 39% today, according to Børsen (February 6, 2025). As fewer people use the Dankort, the overall costs of maintaining the payment infrastructure rise.
The National Bank estimates that a Dankort transaction costs society DKK 2.90, while international cards cost DKK 2.30 per transaction (finans.dk, February 5, 2025). Although Dankort processing fees have remained stable for years, they increased by approximately 9% per transaction in 2024, even though Nets’ revenue cap for Dankort processing was reduced by 30% for 2024 and 2025. According to Nets, this price increase is attributed to a decline in transactions that does not align with the reduction in operating costs.
Despite these recent price hikes, Dankort remains the cheapest option for most businesses compared to international payment cards. However, as the National Bank notes, international cards offer global usability and additional features such as balance checks, spending limit customization, and geographic card blocking.
What changes is the government proposing?
The government is developing legislation aimed at:
- Opening the market to allow multiple providers to process Dankort payments - not just Nets.
- Increasing transparency in transaction pricing so businesses and webshops can better compare costs between different payment solutions.
According to the Danish Competition and Consumer Authority, some providers could help businesses save up to 40% (Børsen, March 2, 2025). The proposed legislation is expected to undergo review in spring 2025.
What does this mean for webshops?
If the law changes and Dankort is no longer exclusively tied to Nets, the National Bank’s analysis suggests the following potential outcomes:
Lower costs: Increased competition may result in reduced fees for Dankort transactions. When several acquirers provide Dankort processing, market concentration diminishes, enabling businesses to bundle Dankort and international card processing at improved rates, which could lower costs.
A more resilient Dankort: Adjustments to Danish pricing regulations could enhance the Dankort system. Dankort could become more robust against cyberattacks and fraud by encouraging continuous development and innovation.
Better technology and service: More market players could drive faster and more flexible payment solutions. On a broader scale, a diversified payment infrastructure would enhance system resilience, ensuring businesses and consumers can still access alternative options if one payment method experiences downtime.
Do we still need Dankort?
Since 1983, Dankort has been a key part of Denmark’s transition to digital payments. Before its introduction, each bank had its own payment card system, which was costly and inefficient for consumers and merchants. Dankort provided a unified, efficient, and affordable solution. However, with international alternatives like VISA and Mastercard dominating the market, the question remains: Do we still need a national payment solution?
Disadvantages of Dankort:
- Lack of consumer protection: Dankort does not provide the same safeguards against merchant bankruptcies (e.g., travel agencies or online shops) as Visa and Mastercard.
- No tokenization support: Unlike Mastercard and Visa, Dankort does not support tokenization. This means subscription payments may be interrupted if a card is renewed or lost.
Advantages of Dankort:
- Lowest costs for merchants: Dankort transactions continue to be the most affordable option for webshops because of government-regulated pricing.
- Danish control over payment infrastructure: Some argue that Denmark should maintain its own payment infrastructure to reduce reliance on global providers and enhance cybersecurity.
Conclusion
The debate over Dankort’s future continues, and the government’s proposed legislation could significantly reshape the market. For webshop owners, this might lead to lower costs, more choices, and new payment options for customers.
At Quickpay, we maintain neutrality in this debate, but we hope this article has provided you with a clearer understanding of what is at stake and how it may affect your webshop.
