Outlook for the future
So is Dankort losing traction in the battle of card payments? The number of Visa/Dankort is still rising, and there will be more pure Dankort issued by Jyske Bank in the near future. However, merchants haven’t got it easy juggling between separate acceptance agreements and technological setups, and consumers are getting more comfortable using international debit cards.
To summarise the challenges for Dankort:
Businesses with small transactions may find international debit cards cheaper.
Merchants are getting frustrated at the breadth of payment methods with differing costs and setups.
Dankort app is nowhere near as popular as MobilePay.
Jyske Bank’s decision to split the combined card could mean a drop in Dankort usage within the next couple of years.
While Dankort is still the most popular card, the increasing adoption of Visa and Debit Mastercard could mean more people move away from it.
The threats to Dankort have been dealt with in monopoly wars between the handful of acquirers available in Denmark. Nets, for example, does not accept MobilePay on their Ingenico card machines, but they accept Dankort app (not strange considering they own the brand).
Verifone, on the other hand, has taken an open approach to acceptance, allowing their terminals to accept any payment method and acquiring agreement their merchants want. For example, you don’t need a special Bluetooth box next to the machine to accept MobilePay or Dankort app. Big supermarket chains like Rema 1000, Spar and Bauhaus have switched over to Verifone in the past couple of years because of this openness.
The convenience of a terminal that can accept anything without being locked in to a discriminatory acquiring contract is arguably what most shops want. The question is whether Dankort can keep holding the rest of the payment market at an arm’s length and still be Denmark’s treasured debit card in the face of strong competition.