With high banking, smartphone, and internet penetration, Norway is an ideal market for businesses looking to expand. In fact, 79% of the population already shops online, with one in four products bought from outside Norway’s borders.
If you plan to sell in Norway, it’s important to understand what the most popular payment methods are. Implementing these as part of your checkout process can help boost customer satisfaction and reduce cart abandonment rates. We’ll take a closer look at the top five payment methods and how they are used by Norwegian customers.
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5 Top Payment Methods in Norway
1. Card Payments
Card payments – both debit and credit – are the most popular payment method in Norway, both for in-person and online transactions. According to the Norges Bank – Norway’s central bank – card payments accounted for 43% of all retail transactions.
The most popular card to use is the local debit card scheme BankAxept. It makes up nearly 63% of all card transactions within the country. Almost all BankAxept cards are co-branded as either Mastercard or Visa, so they can be used wherever those brands are accepted.
While debit cards are slightly favored over credit cards, credit card usage is on the rise in Norway. Norges Bank reported that there were 5 million credit cards in circulation in 2021 – nearly one for every person. International credit cards like Visa and Mastercard makeup 39% of all card transactions.
2. Vipps
Vipps is a Norwegian mobile payment app that allows customers to pay using a phone number, a unique Vipps number, or by scanning a QR code. Vipps offers convenience and privacy for Norwegian customers, as they can pay without needing to provide their banking or card information – it’s all done through the app.
The app can be used online, in-stores, or as a peer-to-peer payment service. Currently, there are roughly three million active users, or about 75% of the population. Norges Bank reported that there were 187 million instant payments made through Vipps in 2021.
3. Bank Transfer
Norway, like many other European countries, uses bank transfers as a common payment method. It is fast and secure, with less risk of fraud than card payments. These are sometimes called giro transfers in Norway. Norges Bank reports bank transfers account for 22% of all online transactions.
Bank transfers are popular for larger purchases or recurring charges like subscriptions or utilities. Many customers use apps like Trustly or Nordea to complete bank transfers. However, for transfers outside of Norway, people can also use SEPA (Single Euro Payments Area), despite Norway not being a member of the EU.
4. Klarna
Klarna is a buy now, pay later (BNPL) service that is a popular ecommerce payment method in Norway. This Swedish fintech company launched in Norway between 2006-2008, making it one of the earliest countries to adopt it. As such, it has nearly full control over the BNPL market in Norway.
Klarna allows customers to split large purchases into smaller payments over time. Statista reports that for domestic purchases, Klarna claims 18% of the retail market share. Other competitors – like Norwegian-based Tillit – have entered the market, however, they have yet to make much of a dent in Klarna’s control.
5. PayPal
Even though Vipps has cornered most of the digital wallet market in Norway, PayPal still maintains a steady usage in the country. According to Norges Bank, PayPal makes up 7% of the market share for online shopping.
While not a huge amount, it is a crucial service to many who want to buy things from outside the country. That’s because PayPal is mostly used for cross-border ecommerce payments, where Vipps or other local methods may not be accepted.
The Best Way to Accept Global Payments
Pay.com offers a full-service payment infrastructure that enables your business to accept payments from Norway and beyond. Our platform is designed for global payment processing, with a scalable solution that can grow as your business expands.
By choosing Pay.com as your payment service provider, your business can take advantage of a range of benefits, including:
- A variety of payment methods, from debit and credit cards to digital wallets and local payment methods.
- Developer-friendly APIs for a custom website integration, to create the optimal checkout experience for your customers.
- PCI DSS Level 1 compliance, ensuring that every transaction meets global security standards.
- Multi-factor authentication through the 3D Secure 2.0 (3DS2) system, providing protection against fraud.
- Customer insights and transaction reports, available through the user-friendly Pay Dashboard
- Transparent pricing with a straightforward flat-fee per-transaction structure, enabling you to upgrade your payment platform with no hidden fees.
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The Bottom Line
More Norwegians are shopping online than ever before, making Norway a great market to tap into. However, as there are a ton of ecommerce options, the competition can be fierce. That’s why it’s crucial to implement a streamlined customer experience to attract and retain Norwegian customers.
Offering the payment methods they most prefer is one of the most important ways to do this. This includes card payments, as well as a variety of digital payments including Vipps, PayPal, and online bank transfers.
Luckily, Pay.com makes it easy to get these payment methods and more set up in no time. Choosing Pay.com as your payment service provider means you’ll be able to create a custom, secure checkout process that’s easy for you and your customers. You can get started quickly with our no-code solutions or use our advanced API to create a personalized integration.
Click here to get started with Pay.com!
![5 Top Payment Methods in Norway: Info for Merchants [2023] (2024)](data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAEAAAABCAQAAAC1HAwCAAAAC0lEQVR42mP8/h8AAvMB+NzmkbcAAAAASUVORK5CYII=)