Gaming Market Insights Series #15: Finland — Igniting innovation in mobile payment
The increasing penetration of Internet and smartphones facilitates perfect platform for mobile commerce and mobile payments to take off in this innovative Nordic country.
Approximately, more than 73% Finland population own at least one smartphone and such rate is forecast to grow further in the future. Users between 18–24 years old account for the majority of smartphone ownership in the country. Smartphones have undoubtedly cornered feature phones, representing a robust platform for social network and e-commerce. Smartphone has become more than a communication tool — it is now the gateway to numerous services and activities as for humans.
The mobile payment trend
Credit cards are one of the most common and popular ways for Finnish to make purchases online and E-commerce. Multinational financial corporations like Visa, MasterCard, Maestro, American Express and Discover process payments between merchants and card issuing banks, enabling millions of Finnish users around the world to make purchases using branded credit cards.
Another leap in payment technology was recorded recently when Finnish consumers became able to make P2P mobile payments using a mobile phone number through Siirto, a new platform empowered by ATM operator Automatia — a company owned by three of the country’s banks including OP Bank Group, Nordea Bank and Danske Bank. The real-time mobile payment platform could replace cash in the near future in Finland and will provide an alternative to card payments in online and physical stores.
Potential disruption from blockchain and cryptocurrency
The adoption of digital payment, entry of non-traditional players, technology innovation, and proliferation of immediate payment are significantly driving the dynamics of e-commerce and retail payment. Hence the introduction of blockchain solution will be likely welcomed as a disruptive force in Finland thanks to the game-changing solutions to settlement mechanisms and exchange.
On a different note, Finnish regulators have classified bitcoin as a financial service, thus granting it VAT-exempt status. The Finnish Central Board of Taxes (CBT) regards bitcoin as a financial service in ruling 034/2014, which states that bitcoin purchases qualify as “banking services” under the EU Value Added Tax (VAT) Directive. Finland’s authorities has been quite aggressive in canvassing bitcoin as a recognized payment instrument and a formal currency in the country.
Recently, a Finnish bitcoin startup named “Denarium” has launched a range of “low-cost” physical bitcoins in an attempt to stimulate the digital currency’s adoption. This has partly demonstrated the commitment and energy from Finnish blockchain/cryptocurrency startups in promoting Bitcoin adoption. Though this might sound far-fetched in the absence of Finland’s regulations, still blockchain and cryptocurrency advocates are quite optimistic about business potential in this forward thinking country.
ABOUT REPORT PUBLISHER
The report is prepared by CARDANO Labo — the leading blockchain research and development startup focusing on blockchain-empowered gaming and entertainment services. We are keen on bringing this technology to a broader audience where people will have better access and opportunities to enjoy their lives through unprecedented technical solutions.
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