Market Trends of Finland Payments Industry
This section covers the major market trends shaping the Finland Payments Market according to our research experts:
E-Commerce is expected to drive the market growth
- Finland was a very early adopter of the internet and had a highly developed digital infrastructure. Online shopping is prevalent in the region, yet the country still has growth potential. For instance, in 2021, Finland was ranked second in the European Union's Digital and Society Index (DESI), which shows that the country is considered one of the most developed digital economies in the European Union.
- As per Statistics Finland, as of 2021, 95% of 16 to 24 years olds in Finland had purchased or ordered something online at least once, whereas 90% of Finnish aged between 16 to 24 years have shopped online within the past 12 months, while 73% has shopped online within the past three months.
- The region is witnessing various strategic mergers and acquisitions within the online marketplace as companies seek to gain a stronghold in their market presence. For instance, in November 2021, DoorDash Inc. bought a food delivery start-up Wolt Enterprise Oy for approximately USD 8 million.
- Domestic companies in the region are receiving investments that are providing a boost to the e-commerce sector in the country. For instance, in April 2022, Helsinki-based AI-powered shopping helper Upsy received EUR 1.2 million in a seed round.
- Moreover, in February 2021, postal operator, Posti announced its plans to invest USD 113 million in a new logistic center in Finland. The new logistics center is expected to start operations around 2025 and form part of the company's overall growth strategy.
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Retail sector to have a significant growth
- The retail industry is one of the top industries in Finland. As a result, the retail sector represents a wealth of opportunities for new business, trading, and investing. The payment market in Finland is developing with the changing customer behavior. Trends such as mobile payments, internet banking, instant payments, and the Government's growth initiatives are affecting the payment market in the country.
- Further, citizens spend a significant share of money on categories that include food, beverages, tobacco, clothing, footwear, cosmetics, body care products, furniture, appliances for the household, and leisure items such as watches and accessories. Furthermore, various payment checkout solutions offered by top retail market players in the region are further accelerating the growth of the retail sector.
- In November 2021, Paysafe, a payments platform, announced its partnership with Huawei, a global provider of information technology, communication infrastructure, and smart devices. The partnership will provide Paysafe's online cash solution, Paysafecard on Huawei app gallery, as an alternative payment method in Finland. This partnership will make cash-based online purchases available to millions of customers.
- According to Statistics Finland's retail trade flash estimate, the working day adjusted retail trade turnover in the daily consumer goods trade increased by 3.2% in February 2022 from February 2021. The working day adjusted turnover increased by 3.4% in February in the daily consumer goods trade.
- This continuous rise in the retail sector provides various opportunities to payments providers in the region to enhance their payment platforms and apps to cater to the increasing demand. Furthermore, the rising adoption of digital wallets and contactless payments by cards further provides lucrative opportunities for payment providers in the region.
