Denmark has the highest spending per capita for online shopping in Europe. E-commerce sales of local online retailers reached nearly $17 billion USD in 2022, and sales from foreign retailers reached approximately $6 billion USD that year. For businesses thinking about accepting payments in this market, a nuanced approach to payment methods, international transactions, and payment security protocols can help improve conversion rates and build customers’ trust.

Below, we’ll explain how to set yourself up for success in the Denmark payment market, including:

• Focusing on local payment methods
  
• Simplifying the checkout process
  
• Bolstering transaction security
  

The state of the market

Denmark is known for its modern, international outlook. Although cash payments still occur, they are less common than credit and debit card or mobile payment transactions. Danish payment preferences share similarities with those of neighbouring Nordic countries, and cross-border payment solutions popular in Sweden and Norway are also popular with consumers in Denmark.

Although Denmark has its own currency, the Danish krone (DKK), its European Union membership means its payment systems are also influenced by European standards such as the General Data Protection Regulation (GDPR). The Danish Financial Supervisory Authority, Finanstilsynet, is the principal regulatory body responsible for overseeing financial institutions and maintaining market confidence.

Payment methods

Although Denmark isn’t yet a cashless society, it’s moving in that direction as it is propelled by technological advancements. Let’s take a closer look at popular payment methods in this market:

Current usage

Customers in Denmark demonstrate a strong preference for digital payment methods: 88% of all in-store transactions were made digitally in 2021. Credit cards are broadly accepted, with two out of three payments made by card, and almost 80% of the population has a Dankort card – the national debit card. Contactless card payments are also on the rise, from 4% of in-store payments during the first quarter of 2016 to 72% during the second quarter of 2021.

Danish comfort with non-cash methods is seen in the widespread use of the mobile payment app MobilePay, developed by Danske Bank. MobilePay announced in 2022 that it was merging with the Norwegian mobile payment app Vipps to form Vipps MobilePay, and a unified app was released in 2024. Additionally, a 2022 report by the National Bank of Denmark found that 92% of the population had access to MobilePay, highlighting openness to replacing traditional cash transactions with digital alternatives. The use of mobile payments overall more than doubled from 2019 to 2021, with one in five payments in physical stores being a mobile payment.

Although international digital wallet options such as Apple Pay and Google Pay also have a presence, local solutions such as MobilePay – as well as Sweden’s Swish for cross-border payments – have widespread popularity.

Popular B2C payment methods in Denmark

• Credit and debit cards (e.g. Dankort)
  
• Mobile payments (e.g. MobilePay)
  
• Bank transfers
  
• Buy now, pay later (BNPL) payments (e.g. Klarna)
  

Popular B2B payment methods in Denmark

• Credit cards
  
• Credit transfers
  
• Direct debits
  

Emerging trends

Denmark is known for its progressive stance on technology, and the country has experienced a growing interest in cryptocurrency. The cryptocurrencies market in Denmark is projected to reach $155.2 million USD in 2025. Denmark does not consider cryptocurrencies as legal tender, meaning they aren’t officially recognised as a currency, but crypto earnings are subject to taxation. Skattestyrelsen, the Danish tax authority, monitors crypto transactions in an effort to curb tax evasion.

Ease and friction of entry

Accepting payments in Denmark requires careful attention to taxes, chargeback regulations, cross-border payments, and payment security. Here’s a rundown:

Taxes

Denmark’s value-added tax (VAT) is one of the highest in Europe at 25% for most goods and services. Although consumers pay this tax directly, businesses are responsible for collecting and remitting it to Skattestyrelsen. Failure to properly document and submit VAT can lead to penalties for businesses.

Chargebacks and disputes

Similar to much of Europe, Denmark places a strong emphasis on consumer protection, and this ethos is reflected in how the country handles chargebacks and disputes. Danish consumers have the right to dispute transactions they believe to be unauthorised or erroneous, and the responsibility falls on the business or the financial institution to validate the legitimacy of a transaction.

As a member of the EU, Denmark complies with the revised Payment Services Directive (PSD2), which can impact chargeback disputes through its Strong Customer Authentication (SCA) mandate. The Danish Payment Services and Electronic Money Act aligns with PSD2 and stipulates that in the event of an unauthorised payment transaction, the payer is entitled to an immediate refund – unless there are indications the payer has engaged in fraudulent behaviour.

International payments

Whether your business plans to serve international B2C or B2B customers in Denmark, it’s important to understand how currency conversion and international transactions work.

• Multi-currency options
  Offering payment options in currencies other than Danish krone, such as the euro, can reduce barriers for customers outside Denmark who prefer to see the price in their local currency. Integration of multi-currency payment gateways simplifies the process for businesses and customers.

• Currency conversion
  Because Denmark has retained its own currency despite joining the EU, currency conversion is common. Interbank rates, the rates at which banks buy and sell currencies, are dynamic and fluctuate based on global financial market conditions. Although the interbank rate acts as a reference point for currency conversion, most financial institutions add a markup to this rate when providing currency conversion services to customers.

• Fee transparency
  Regulations mandate transparency in disclosing all fees associated with currency conversion, so customers don’t face hidden costs.

Security and privacy

Denmark’s payments are characterised by stringent security measures, comprehensive regulatory oversight, and compliance with EU directives. Any business seeking to enter the Danish payment market needs to understand data protection and payment security guidelines within it. Here are the highlights.

• Data protection laws
  Denmark enforces the GDPR, which prioritises the protection of consumer data. The Danish Data Protection Agency, Datatilsynet, supervises GDPR adherence and can impose penalties on organisations that do not meet the required standards.

• Payment services directive
  PSD2 is another significant EU regulation that affects payments in Denmark. This directive promotes competition and innovation in the payment industry, allowing third-party providers to offer financial services by requiring banks to grant them access to account information with the account holder’s consent.

• Anti-Money Laundering (AML) stance
  Denmark complies with the EU’s AML and counter-terrorist financing (CTF) directives. Institutions are required to implement stringent Know Your Customer (KYC) procedures and to monitor transactions for suspicious activity. The Money Laundering Secretariat, part of the State Prosecutor for Serious Economic and International Crime, handles reports and investigations related to money laundering.

• MitID authentication
  MitID, a secure login solution used on the internet and mobile devices, confirms a user’s identity – adding an extra layer of protection for online transactions and activities.

• Financial Supervisory Authority’s oversight
  The Danish Financial Supervisory Authority, Finanstilsynet, plays a pivotal role in the country’s regulatory framework, overseeing financial institutions and making sure they adhere to required standards and regulations. This includes supervising their payment security and fraud detection practices.

Key success factors

Denmark’s payment environment boasts advanced infrastructure and widespread digital adoption, but it still has its challenges. The country’s position as a front-runner in digital transactions means it grapples with specific issues that businesses must be able to address.

• Traditional and modern payment methods
  As of 2024, 98% of Danes had used online banking, leaving a small subset of 2% of the population – often an older demographic – that does not embrace digital. This means businesses might need to accommodate a variety of payment methods to attract some customers who prefer more traditional options. For in-person payments, businesses can offer customers flexibility by accepting cash, credit and debit cards, and BNPL services.

• Mobile options
  Mobile payments in Denmark are popular, and they are often facilitated by platforms such as MobilePay, Apple Pay, and Google Pay. Facilitating transactions via mobile payment apps and digital wallets can help provide a quick and seamless payment experience for Danish customers.

• Interoperability with international systems
  Since Denmark is a member of the EU but not the eurozone, businesses that cater to international customers in Denmark can benefit from ensuring compatibility with both Single Euro Payments Area (SEPA) regulations for euro transactions and local Danish regulations – as well as embracing Swedish payment methods such as Swish.

• Cyber threat mitigation
  According to the Centre for Cyber Security, the national IT security authority, the threat level for cyber crime against Danish financial institutions was very high as of 2024, signalling increased risk across the payment sector. This means companies accepting payments in Denmark must continue to invest in cybersecurity and fraud detection measures, including choosing secure payment gateways and implementing 3D Secure authentication for online transactions.

Key takeaways

Denmark is often seen as an important centre of digital innovation, and the nation’s values and technological leanings affect the way payments are handled. The nation’s high level of digital readiness means customers might anticipate a fast and hassle-free payment experience, and businesses can gain a competitive edge by including localised solutions in their strategy.

Focus on local payment methods

• Support MobilePay
  The payment app MobilePay is very popular with customers in Denmark. To serve local customers best, accept MobilePay transactions.

• Embrace Dankort cards
  Even amid widespread use of mobile payments and international credit cards, the national debit card – Dankort – is frequently used by Danes. Embracing Dankort cards can instill a sense of trust and familiarity among locals.

• Improve cross-border payments
  Denmark’s payment preferences reflect its close ties with its Nordic neighbours, Sweden and Norway. Consider integrating Swish, which has seen adoption in Denmark for cross-border transactions.

Simplify the checkout process

• Incorporate BNPL
  BNPL services such as Klarna offer customers flexibility and the chance to avoid immediate financial commitment, which can be especially appealing to younger customers. Offer BNPL options both in person and online to help improve conversion rates.

• Keep the checkout process moving
  Denmark’s tech-savvy customers might be accustomed to fast and intuitive digital experiences. Improve your user experience by reducing the number of steps in the checkout process and using an intuitive payment interface.

• Be transparent with fees
  Danish regulations on fees means businesses might want to prioritise transparency with customers. Clearly communicate any additional fees, especially those related to cross-border transactions or currency conversions, to prevent cart abandonment.

Bolster transaction security

• Integrate MitID authentication
  The introduction of the unified digital identification solution MitID has significantly influenced online transactions in Denmark. Provide customers with an extra layer of security and trust by integrating MitID authentication into your payment process.

• Prioritise data protection
  Keeping customer payment data safe is required – and it can help your business avoid financial and reputational losses. Make sure your data security protocols comply with the GDPR’s data protection regulations and the Payment Card Industry Data Security Standard (PCI DSS).

• Communicate security practices to customers
  As digital payments increase, concerns about security breaches can increase as well. Businesses can build confidence in the security of their transactions by updating customers regularly about security measures.