According to a new report by Timetric, a rapid growth in online shopping is expected to create new opportunities in Finland for mobile commerce and mobile payments.
The growing use of smartphones coupled with rising consumer demand for convenient payments have fueled growth in mobile payments. M-payments – including mobile wallets and carrier billing – is growing rapidly among Finnish consumers. The two payment methods collectively accounted for 6.8% of the total e-commerce value in 2014 – a number which is set to increase further. Finnish telecommunications provider Elisa launched the Elisa Lompakko digital wallet in March 2013; other operators offering digital wallets include EuTeller and Klarna.
E-commerce grew significantly in Finland during the review period, due to the rise in internet penetration, increasing consumer confidence in online transactions and the growing presence of online gateways in the country. The value of e-commerce increased from US$5.4 billion (EUR4.1 billion) in 2010 to US$10.1 billion (EUR7.6 billion) in 2014, at a CAGR of 16.72%. Furthermore, Timetric’s analysts anticipate the value of e-commerce to increase from US$9.7 billion (EUR8.7 billion) in 2015 to US$14.8 billion (EUR12.9 billion) by 2019.
According to PostNord, Finnish e-commerce from abroad accounted for 40% of the total e-commerce value in 2014 – the highest percentage in the Nordic countries. The report indicates that an average of 49% of Finns bought products from foreign websites during each quarter of 2014, with a total annual value of US$1.3 billion (EUR961 million).
“The growth of e-commerce in Finland is facilitated by the development of information technology including online and m-payment services. Consumers in Finland mostly use credit transfer to pay for online purchases. And while the shares of payment cards and cash on delivery decreased, digital wallets, mobile wallets, carrier billing and direct debit increased their shares during the last couple of years, as consumers increasingly began to use phones to make payments,” comments Timetric’s Analyst Manish Sah.
