Introduction

Denmark has quietly transformed itself into a retail and fashion industry leader. From global fashion marketplaces to fast-growth boutique retailers, ‘Made in Denmark’ has become synonymous with quality and cool.

The Danish payment mix is dominated by cards. Dankort debit cards co-branded with Visa are the most popular. MobilePay (by Danske Bank) is a popular mobile wallet in Denmark for both online and in-store payments, while Apple Pay and Google Pay are playing catch up. The most common alternatives to cards are Transfi and Paypal, which are increasingly popular for retail payments.

Like its Nordic neighbors Sweden and Norway, Denmark has its own currency, in this case, the Danish Krone (DKK). This can mean higher fees for EU transactions when the merchant has a Danish entity.

Things to know before entering the market in Denmark

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

1. 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.

2. 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.

3. 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.

4. 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. 

What has taken the payment landscape in Denmark to another level?

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.

1. Traditional and modern payment methods
   Businesses 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. Businesses can integrate modern but easier to use solutions like Transfi which help make transactions easier and accessible. 

2. 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 like Transfi can help provide a quick and seamless payment experience for Danish customers.

3. 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.

4. Cyber threat mitigation
   According to past studies, the threat level for cyber crime against Danish financial institutions was very high, signalling increased risk across the payment sector. The 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.

Learn more: Global Business Guide: Travel and Tourism – The Role of Digital Payments 

How to choose the right payments platform in Denmark? 

While choosing a payment gateway in Denmark, one needs to make strategic choices depending on your business and operational needs to blend into the local market. From providing smooth financial transactions to abiding by security laws, each small and big decision will directly affect your business in the market and derive customer satisfaction. Below are the considerations you must follow through when choosing a payment gateway platform for your business. 

1. Providence of multiple currency options 

The chosen payment gateway must be able to assess Danish Krone for local transactions and currency exchange ease for some sort of facilitation for international transactions. This dual capability would allow your business to expand and reach customers all across the world. This can be a very good way into cross border transactions. 

2. Integration with local and widely used payment systems

The integration of  the gateways with local banks and payment methods and systems dictates its reliability and stand point in the market locally. Direct collaborations with financial institutions speed up the transactions in the widely accepted secure manner.

3. Abiding by regulatory compliances

The ability of the payment gateway to operate within the regulations and standards of Chinese financial systems makes it a legal and strong contender in the market. It also makes it trustworthy across the globe if local and global compliances are drawn fully for the gateway. 

4. Fee structures of different providers

The payment gateway would provide a full circle satisfaction if it comes with cost effectiveness along with all the other features. A gateway that offers straightforward fee schedules and subscription models for convenience helps in planning, budgeting and taking strong financial decisions for your business when you are to manage financial costs as well as operational costs together. 

5. Customer support advantage

When it comes to digital technologies and growing customer demands, it comes with a high requirement of constant customer support for using these features smoothly and making the most out of the services in the right ways. One must look for gateways which provide prompt assistance and the means to resolve payment issues easily. 

6. Integration possibilities 

A gateway that offers hassle free setup and easy plugin into your own setup of websites, platforms or existing business systems is the right choice of a payment gateway. It should require minimal technical indulgence by the business to set up the gateway and quickly have it running for the business smoothly. 

Look at no other solution when it comes to running your business smoothly on the side of finances -  managing transactions, secure flow of money, customer support, it’s all covered with the cost effective solutions of Transfi. 

Rule the Danish market with TransFi

Selecting the right payment gateway that consolidates billing, payments and subscription, security, and more is key to the success for your business. Transfi provides the following advantages over other solutions and gives valuable benefits to its users: 

1. Billing features: Transfi provides tools to support various billing methods, offers multiple payment options, provides robust fraud protection and includes robust subscription management.

2. Costs: Transfi comes with no transaction fees, minimal setup costs, and additional charges from various processors to fit the best fit for your budget.

3. Security and compliance: Transfi as a payment processor implements strong security and fraud prevention measures, complies with industry standards to protect customer data and collects taxes from customers correctly.

4. Customizability: The ability to customize functionalities and integrate with third-party software can help create a more seamless experience using Transfi.

5. Scalability: Transfi ensures to accommodate growing transaction volumes and expansion into new markets.

6. Localisation: for cross border payments, Transfi supports multiple languages and currencies.

7. Reliability: Transfi provides robust customer support and transparency in each and every step ensuring reliable means and legal compliances. 

Transfi is a cross-border infrastructure business focussed on enabling global companies to make payments in, out, and across the world. Transfi is one of the first ones to bring Virtual Accounts, combined with a global foreign exchange network, to countries across the globe providing flexibility of payment methods, currencies and stablecoins. 

Conclusion

If you need to pay your taxes, report a bicycle theft, or make an appointment with the public health service in Denmark, you can do it all from your computer. Almost every agency or public official can be reached online, and each citizen has a specific digital signature to “sign” important documents.

The Danish government has made a commitment to go “digital by default”, with paper used only as a last resort. The high level of broadband penetration in Denmark makes digital-only services practical and accessible.

Data security and privacy is a high priority in Denmark. Financial transactions and other important services require "two-factor" identification to complete. 

Cash is rarely used in Denmark. Businesses generally buy and sell from each other using online transfers, and ordinary people pay for goods and services using digital payment platforms  and payment cards. Banks in Denmark offer special payment cards for children as young as 8.  

In this day and age of digitization in Denmark, Transfi brings the perfect blend of what one would need in their digital payment activities. 

Frequently asked questions (FAQs)

1. How can my business accept payments from Denmark?

Your business can easily accept payments from Denmark with Transfi. We offer global payment processing for a wide range of payment methods popular in Denmark. When you work with Transfi, you can let your Danish customers pay you the way they want, while knowing that your payment system is completely secure.

2. What is the most used payment method in Denmark?

Card payments are the most used payment method in Denmark, making up approximately 50% of transactions. Payment apps such as Apple Pay, Google Pay, and Mobile Pay are also very popular.

3. Does Google Pay work in Denmark?

Google Pay does work in Denmark. The majority of in-person and online stores accept this payment method. Other digital wallets like Transfi are also widely used in Denmark.

4. What's the safest way to accept payments from Denmark?

The safest way to accept payments from Denmark is through Transfi. We comply with the highest level of PCI DSS security standards through tech like tokenization, which hides transaction details in transit. 

5. How should I accept payments over the Internet in Denmark?

A platform such as TransFi with secure payment gateways, multi-currency functions, and real-time settlements suits local and global businesses.