As phones have transformed into mini-computers and people use them for just about everything – checking emails, social networking, reading the latest news, checking mobile-friendly websites and buying and selling things – it is not a surprise that people are now using their smartphones to make payments. In fact, Denmark is one of the first countries in the Nordic region along with Sweden to become a cashless country, and this has given rise to applications that support payments via smartphones.
Understanding how mobile payments work
In Denmark, small and big businesses accept mobile payments as it is the norm. So, you have no reason to worry if you are stranded anywhere without cash. In fact, mobile payment is more convenient, quick and hassle-free.
Many people who come from other nations are often surprised to see the high internet penetration in the country and smartphone usage. Nearly 78% of households in Denmark use smartphones and eight out of 10 people use their phones to access online shopping, read the news, check emails and socialize with friends on social networking sites. So, mobile payment applications are a necessity in a country where being cashless is a way of life.
In Denmark its also possible to make a quick online loan on your smartphone and get instant cash to your bank account.
A store that accepts mobile payments will have an NFC-enabled PoS. To use your smartphone to pay, you would require a mobile payment application that the merchant or store accepts. All you would have to do is hold your smartphone in proximity to the NFC-enabled point of sale (about 2 inches), and the transaction will be completed. Remember, at no point does your smartphone come in contact with the payment reader, and that is why mobile payments are often called contactless payments.
During the transaction, the mobile wallet application on your device talks to the NFC-enabled PoS. This communication occurs in an encrypted environment and hardly takes a few seconds. As a result, payment for any purchase occurs in real-time.
With Denmark going cashless, there are several mobile payment wallets that you can download on your smartphone to make purchases. However, the following four are the most popular and accepted by thousands of merchants across the country.
MobilePay started in 2013 and was launched by Danske Bank to facilitate peer-to-peer payments. Over the years, it has transformed and evolved and become the favorite mobile payment application in the country. It is accepted by more than 7,000 merchants in Denmark and facilitates in-store and web payments with relative ease. You, the user, enjoy free transactions as the app levies a flat 1% fee on the merchants.
This payment app is popular with users of all age groups and even small business owners like it as it allows them to accept payments without an NFC-enabled PoS. The application has low fraud levels, thanks to stringent security measures. It is also working with other online platforms to make it easy for users to pay via their smartphones across Europe.
2. Apple Pay Denmark
If you have an iPhone, you needn’t worry as you can enjoy cashless transactions in Denmark through Apple Pay. Of course, this online payment application works with just version 6 and newer models. It also is compatible with Apple Watch.
You will need to add your credit card or debit card details to the app in order to use it pay for purchases using your smartphone. If a store accepts Apple Pay, just hold your Apple device near the payment reader and make sure that your finger is positioned on the Touch ID button. It will automatically fulfill the payment.
3. Samsung Pay Denmark
Just like Apple Pay, Samsung Pay requires you to connect your credit or debit card to the payment application. Once that is done, you can make payments in Denmark via your smartphone. It is essential to note that currently, Samsung Pay works with select phones and tablets. These are Galaxy S6, Galaxy S6 Edge, Galaxy S6 Edge Plus and Note 5.
It is also important to know that in Denmark and other Nordic countries, all phones compatible with Samsung Pay have the application and that means you can use it to make payments through your smartphone. Of course, Samsung Pay is a new entrant in the mobile payments industry but it has already become popular among Samsung phone lovers, who enjoy the security afforded by this brand.
4. Google Pay
Google Pay is also valid and popular in Denmark among users who want to use this app to make purchases. It requires you to have an Android version 4.4 or higher and your device should be enabled for NFC payments.
To pay using your smartphone, you would need to open the Google Pay app and then hold the smartphone over the payment reader to complete the transaction. It is fast, simple and of course, free. In Denmark, many stores accept Google Pay and the application allows you to keep track of all your credit and debit cards through a single interface.
The Bottom Line
Denmark has always been proud of being an early adopter of digital technology and with it comes to cashless payments, the country is way ahead of other European nations. The central bank of Denmark has confirmed that many people enjoy a cashless life in the country and this number is going to increase in the future. Of course, the nation is not completely cashless as yet. People living in Denmark still have the right to pay cash if they like for the purchases they make. In fact, many people keep cash on them and this makes sure that vulnerable groups in Denmark, such as the poor and the elderly, are not left behind in the age of digital payment.
So, now you know how to make payments for goods and services using your smartphone. You can download one of these four mobile payment applications and enjoy living a fulfilling life in Denmark, where you do not have to worry about carrying cash with you or losing your money. Instead, your phone functions as your personal cash machine that enables you to buy just about anything you want or like.