New figures from Norges Bank reveal that cash is now only being used for 3% of transactions in Norway, and that cash is in the process of disappearing from day-to-day commerce. Taxis, restaurants, car parks and bus services are examples of businesses that have, in the middle of the coronavirus pandemic, adopted new digital solutions to make day-to-day life easier and safer for people.
In parallel with the decline in the use of cash, the level of interest in contactless payment is increasing. This technology has been widely available in Norway since 2018, and has made a big leap forward in terms of popularity in recent months. New figures from TietoEVRY indicate that when Norway locked down in response to the coronavirus pandemic in spring, the use of contactless payment technology exploded, and it is now used for around 70% of all card payments. Use of the technology is expected to continue to increase, not least as a consequence of the contactless payment limit increasing to NOK 400.
Shopping and payment becoming easier
NorgesGruppen has, in the middle of the coronavirus pandemic, launched new, modern credit cards for all its Trumf loyalty program members, which will make it easier for users to pay using contactless technology.
This is, however, not the only new development. Trumf members will also be able to access a separate app that makes it easier for them to manage their payment card and to access relevant data on their payment transactions. The app allows families to view all their accounts in one place, which will make it easier for them to keep track of their finances. NorgesGruppen has also made it significantly easier to become a Trumf member. Thanks to a web-based application process, new members will be able to immediately access their Trumf Visa card for use for online shopping, with their physical card being sent out to them a short time after.
“Trumf’s payment services and membership benefits are an integral part of NorgesGruppen’s work to continually make payments simpler and better for our customers”, explains Ingrid Solberg Gundersen, Director of Communications at NorgesGruppen.
E-commerce is changing consumer habits
It is not only payment cards that are changing. The closure of society due to the coronavirus pandemic contributed to strong growth in e-commerce in the second quarter of 2020. According to the Federation of Norwegian Enterprise, an industry organisation, e-commerce grew by 58% in April and 36% in May. Its forecast for the year is for growth of 25%, but there are numerous indications that the actual rate will be higher as the second coronavirus wave spreads across Norwegian society.
The day before Christmas Eve and the weekend before Christmas Eve have traditionally been the busiest days for shopping in Norway. In recent years, Black Friday has gradually come to occupy a more important position. We are seeing two important changes to shopping patterns as a result of the coronavirus pandemic. The first change is that many shops are running week-long ‘Black Friday’ campaigns to spread out visitor traffic in their physical stores. The other change is that online is increasingly consumers’ first choice destination for Black Friday sales and Christmas shopping.
TietoEVRY expects there will be about a 30% increase in Black Friday traffic in 2020 compared with last year. Its forecasts indicate that Norwegians will “swipe their cards” around 13 million times on Black Friday shopping this year. This is double the number of transactions seen in 2017. Last year, Norwegians spent around NOK 3.5 billion on Black Friday shopping. This year this amount is expected to rise to more than NOK 4 billion. For comparison, Saturday 19 December is expected to be the biggest trading day in December, with around 10 million transactions expected.
“The successful retailers of the future will need to combine physical stores with e-commerce, and will need to create integrated concepts and smart payment solutions that ensure that transactions can be completed quickly, safely and efficiently”, comments Mario Blazevic, VP for Card Solutions at TietoEVRY. Mario points to three examples of developments that will dramatically change the experience of shopping online in the future.
VR headsets can give customers a far more realistic picture of products and can enhance the shopping experience, taking e-commerce to new heights. His second example is that mobile phones will be consumers’ first choice for shopping online. Mobile-friendly design and simple navigation are important to all phases of the buying process. A third example is automated chatbots that will make customer service quicker, more adapted to the individual user and available 24/7.
For further information, please contact:
Geir Remman, Communications Lead TietoEVRY Norway, tel. +47 97055017
Mario Blazevic, Vice President Card Issuing TietoEVRY, tel. +47 95033569
NorgesGruppen is the largest largest grocery retailer in Norway, with 1,850 grocery stores in 88% of Norway’s municipalities. NorgesGruppen operates supermarkets, district stores and discount stores, as well as e-commerce. The group employs over 27,000 employees in company-owned stores, and more than 40,000 in total when employees in grocery-owned stores are included. https://www.norgesgruppen.no/
TietoEVRY creates digital advantage for businesses and society. We are a leading digital services and software company with local presence and global capabilities. Our Nordic values and heritage steer our success. Headquartered in Finland, TietoEVRY employs around 24 000 experts globally. The company serves thousands of enterprise and public sector customers in more than 90 countries. TietoEVRY’s annual turnover is approximately EUR 3 billion and its shares are listed on the NASDAQ in Helsinki and Stockholm as well as on the Oslo Børs. www.tietoevry.com