Finnish consumers prefer online bank payments

Saana Borgström Written by Saana Borgström - Oct 11, 2016

Are you looking for a new clientele for your online store? How does Finland sound? Has your online store had any Finnish customers yet? 

This article shares some key points about Finnish consumer’s habits online – important info you’ll definitely need to compete against Finnish online stores!

Finland has great potential for international online stores

Finland has great potential as a market area, especially for Nordic and Baltic online stores. Even though the population is only 5 million, almost 80% of Finns have already purchased something online (source: survey by TNS Gallup). It is safe to say that Finns have joined the western world trend and become active online consumers.

In addition to online shopping, Finns are also actively using international online stores. According to the Finnish Commerce Federation, Finns spent 1.2–1.6 billion euros, up to 44 % of all online retail purchases, at international online stores. In 2015, Finnish consumers went online and purchased retail products totaling 3.6 billion euros.

Estimated amount of retail purchases made at international online stores

Image source: Finnish Commerce Federation

What do Finns buy abroad? 

According to the Finnish Commerce Federation’s survey, the most euros are spent on fashion and beauty products at international online stores. These products as well as sports equipment can be found cheaper abroad. Consumer’s decision to buy is also influenced by the shipping costs.

Online bank payments are the most popular payment method online

Finnish spending habits are very similar to other western countries. However, the preferred payment methods differ significantly.

Finnish online stores usually offer their customers many alternative payment methods. The more payment methods there are, the better the conversion rate.

Offering several payment methods online also creates credibility. For example, being able to pay with credit card gives your online store a more reliable image.

Even though a variety of payment methods is recommended, online bank payments are still the most common and preferred way to pay online.

A survey by the research company Taloustutkimus showed that 48% of the respondents preferred to pay using online banks. Surprisingly, the survey also found that the age group who most preferred to pay using online bank payments was between the ages 18 and 35.

According to statistics from our payment service, the percentage of those paying with online banks is even larger: up to 86% of the purchases made last year via our service.

The popularity of online bank payments can be explained by the definite trust Finns have in banks. They are also considered as a safe payment method due to the strong electronic identification used.

Read also:

4 points to consider when changing your online store’s payment service provider

Online store payment methods – what to consider when choosing a payment service? 

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