Boston, MA -- (SBWIRE) -- 11/25/2014 -- The European debt crisis had a profound effect on Finland's economy, with GDP contracting by 1.4% in 2013. The subdued economic development from 2009 onwards had a dampening effect on the overall cards and payments industry during the review period (2009-2013). As the country entered into a recession for the third time in 2014, economic recovery is anticipated to be sluggish, which is likely to impede the cards and payments industry's growth over the forecast period (2014-2018).

In terms of number of cards in circulation, the Finnish payment cards instrument, including debit, credit and charge cards, registered positive growth during the review period, recording a compound annual growth rate (CAGR) of 2.03%, increasing from 10.6 million cards in circulation in 2009 to 11.4 million in 2013. In terms of transaction value, payment cards valued EUR56.6 billion (US$75.1 billion) in 2013, after registering a review-period CAGR of 3.27%.

Improved banking infrastructure, new product developments, and higher awareness of electronic payments and wider acceptance of payment cards at point-of-sale (POS) terminals were key factors driving growth. The adoption of Europay, MasterCard and Visa (EMV) standards and the emergence of contactless technology supported this growth.

The average transaction value (ATV) in Finland was US$54.1 in 2013, which was the lowest among Nordic countries such as Norway, Denmark and Sweden, which recorded ATVs of US$68.3, US$56.6 and US$55 respectively. In terms of card penetration, Norway had the highest level of penetration with 3.6 cards per inhabitant, followed by Sweden with 2.3, Denmark with 2.4 and Finland with 1.5.

Despite having one of the smallest populations in the eurozone, Finland leads the world in terms of frequency of use of payment cards. Finland recorded the highest frequency of use in 2013, with 172.8 transactions per card, followed by Denmark with 159.2, Sweden with 114.1, the Netherlands with 107.1, and Australia with 96.6. According to a 2013 study by the Federation of Finnish Financial Services, two-thirds of Finns use payment cards for regular purchases at grocery stores, supermarkets and gas stations. With the government's proposed reforms to be introduced in late 2014, making it compulsory for retailers to offer electronic options for small-value payments, the frequency of use is anticipated to accelerate further over the forecast period.

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Report Highlights

- The European debt crisis had a profound effect on Finland's economy, with GDP contracting by 1.4% in 2013. The subdued economic development from 2009 onwards had a dampening effect on the overall cards and payments industry during the review period (2009-2013). As the country entered into a recession for the third time in 2014, economic recovery is anticipated to be sluggish, which is likely to impede the cards and payments industry's growth over the forecast period (2014-2018).
- In terms of number of cards in circulation, the Finnish payment cards instrument, including debit, credit and charge cards, registered positive growth during the review period, recording a compound annual growth rate (CAGR) of 2.03%, increasing from 10.6 million cards in circulation in 2009 to 11.4 million in 2013. In terms of transaction value, payment cards valued EUR56.6 billion (US$75.1 billion) in 2013, after registering a review-period CAGR of 3.27%.
- The average transaction value (ATV) in Finland was US$54.1 in 2013, which was the lowest among Nordic countries such as Norway, Denmark and Sweden, which recorded ATVs of US$68.3, US$56.6 and US$55 respectively. In terms of card penetration, Norway had the highest level of penetration with 3.6 cards per inhabitant, followed by Sweden with 2.3, Denmark with 2.4 and Finland with 1.5.
- Despite having one of the smallest populations in the eurozone, Finland leads the world in terms of frequency of use of payment cards. Finland recorded the highest frequency of use in 2013, with 172.8 transactions per card, followed by Denmark with 159.2, Sweden with 114.1, the Netherlands with 107.1, and Australia with 96.6. According to a 2013 study by the Federation of Finnish Financial Services, two-thirds of Finns use payment cards for regular purchases at grocery stores, supermarkets and gas stations. With the government's proposed reforms to be introduced in late 2014, making it compulsory for retailers to offer electronic options for small-value payments, the frequency of use is anticipated to accelerate further over the forecast period.

Companies Mentioned in this Report: Nordea Bank, OP-Pohjola Group, Danske Bank, Bank of Aland, Handelsbanken, MasterCard, Visa, American Express, Diners Club

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