CMSPI Insights Report: Rising Card Scheme Fees in Denmark - The Call for Co-Badging
Denmark’s Dankort scheme is a lot like others in Europe: it typically offers a lower-cost option for accepting card payments, and it’s under threat.
Over the last two decades, regulators across the globe have attempted to protect merchants from rising card fees.
In Denmark, this came in the form of price-setting restrictions on the domestic card scheme, Dankort, as well as the European Union’s 2015 Interchange Fee Regulation. Whilst the IFR represented a resounding victory for merchants, what followed has brought these gains into question.
CMSPI estimates that Dankort saves Danish merchants over €70 million annually. However, the scheme is now facing a number of threats – from mono-badging, to issuer enablement of Dankort within digital wallets. In this White Paper, we take a global perspective on the protection of domestic schemes to see which remedies are available to Danish merchants, and which pitfalls regulators must avoid to protect competition in the long-run.