The Nordics are favoring invisible payment systems

The Senior Vice President of Mobile Services at Nets, Hans Henrik Hoffmeyer, is confident that invisible payment systems will be the new trend in the near future.

Devising a strategy for long-term market growth

In an interview with the Paypers during Money20/20 Europe in Copenhagen, Senior Vice President of Card Processing, Jørgen Stråtveit and Senior Vice President of Mobile Services, Hans Henrik Hoffmeyer talk on Nordic’s favorite ways of paying.

As Senior Vice President, Hans Henrik is responsible for setting strategic direction and driving the long-term market growth of broad-based scalable mobile payment services across Nets Group. Stråtveit and Henrik also elaborate on the role of financial services in creating digital identities.

Nets is a leader in cashless payment solutions

“Nets is a technology-driven company that specializes in powering digital payments and value-added transactional services”, Henrik Hoffmeyer explains. The company serves more than 240 banks in the Nordics, helping them with everything related to cards, card issuing and processing. Nets also works with over 300,000 merchants, out of which more than 30,000 work in an online environment.

“Our role is to process transactions by creating and managing payment infrastructures, and our main customers are banks, merchants, and corporates in 8 countries across the Nordics and Baltics”, Hans Henrik added.

Nets is currently owned by certain funds managed by Advent International Corporation (43.5%); certain funds advised by Bain Capital Private Equity (Europe) L.L.P (the “Bain Capital Funds”) (43.5%); ATP, through its investment vehicles, ATP Private Equity Partners and Via Venture Partners (5%); with the balance held by other co-investors, members of Nets management and employees. For more than four decades, Nets has been instrumental in developing a modern payment infrastructure, with the introduction of a number of payment solutions to Nordic societies.

Nets works with three business segments

Nets provides a choice of services covered by three main business segments, including corporate services, merchant services, and financial and network services. Jørgen Stråtveit explains how they help merchants acquire both in-store and online products, enabling them to accept Visa, MasterCard and domestic card schemes, such as BankAxept, Dankort and China UnionPay.

Nets allows banks to issue cards, manage dispute processes and everything related to payment card. Stråtveit states that they allow banks to issue cards, manage dispute processes and everything related to payment card. The company also supports issuers implementing mobile payments – much of the technology showcased at Money20/20 Europe.

The Dankort payments were introduced in Denmark

The introduction of card-based or Dankort payments on the mobile phone marks a significant change in the way customers pay for goods at stores. The Dankort is just as popular as cash for retail transactions in Denmark. A total of 790 million Dankort transactions were made in 2009, at a total value of about kr. 250 billion. This means that the Dankort is the most widely used payment method in Danish retail outlets in terms of value.

Digital receipts are convenient for consumers

Nets introduced digital receipts so as to simplify check-out processes and to make the payment process frictionless for consumers. According to Stråtveit, their aim is to provide solutions for the whole ecosystem and to ensure that merchants, issuers and acquirers are well-connected. Digital receipts provide a delightful surprise to environmentally conscious and digitally native customers.

The Nordics embraced mobile payments easily

Henrik Hoffmeyer says it was not surprising to see how fast the Nordics embraced mobile payments. The people are up-to-date with the latest technologies and the country has high smartphone penetration. Even when they introduced contactless cards, there was immediate adoption in less than two years.

“This clearly demonstrates that if you offer consumer solutions that provide a faster or otherwise better experience, they will embrace them”, Stråtveit told the Paypers.

Stråtveit also believes that mobile payments need to provide some added value beyond the contactless payments. According to him, this could be achieved with digital receipts, loyalty schemes, special offers and other services that bring the merchants closer to the consumers.

Mobile wallets are the future trend

Stråtveit explains how they use tokenization to store digital identities safely and securely. However, the integration of medical cards and other identification with mobile wallets requires public authority. So, the government will need to take some decisions. The Senior Vice President of Card Processing says that they welcome the future integration of payments and identity storage until they create and manage mobile wallets that will enable all payments choices, including Visa, MasterCard or the Dankort in Denmark.

The Nets offers 3-D Secure Risk-Based Authentication

The digital landscape is responsible for dealing with trust issues, and security and data protection. Taking this into consideration, Nets created a global solution for e-commerce authentication. It is known as the 3-D Secure. The basic concept of the protocol is to tie the financial authorization process with online authentication. The 3-D Secure Risk-Based Authentication helps in delivering an easy and secure way of shopping. The service is offered to all card issuers and is interoperable with all Consumer Management Systems (CMS) used by issuers.


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