Shopify PAY in Denmark
Shopify PAY is now available for Danish Shopify webshops! That's great, but does it make sense for you?
Here is the short generalized answer:
>> If you only sell to Danish customers then... no
>> If you only sell to international customers then... yes
>> If you sell to a mix then... possibly
Beyond the transaction cost itself, it is important to also look at how easy it is (with Shopify PAY you save some workflows).
What is Shopify PAY?
Shopify PAY is Shopify's all-in-one solution! In addition to receiving various payment methods, you get the ability to use multi-currency and later local payments. It sounds delightful as you can simplify the entire payment process.
Basics about gateways and acquirers
To accept online payments, you need an agreement with a payment gateway and one or more acquirers.
Which and how many acquirers you have depend on what you believe your customers require/desire.
A popular example could be having QuickPay as a payment gateway and Nets (Dankort) as well as Clearhaus (Visa and Mastercard). With QuickPay, you can also activate MobilePay, and now you cover the largest need that the general Danish customer has.
But what about Visa / Dankort?
A Visa / Dankort is like having 2 cards in 1. If the webshop only has Visa, the Visa part is used, and if the webshop only has Dankort, the Dankort part is used.
If the webshop has both, it will typically run on the cheapest, which is the Dankort part.
What does it cost?
It varies from company to company and ranges from a fixed amount per transaction to a percentage rate and a combination. Some also charge a monthly fee.
The rates are also different depending on whether the card is issued in Denmark or abroad.
For example, Clearhaus offers (per transaction):
Locally issued cards: 1.45% (min. DKK 0.60)
Foreign issued cards: 2.75% (min. DKK 1.85)
In addition to this, you also have to pay an amount to the gateway you use.
Dankort is the big difference
Dankort is incredibly cheap compared to everything else. The price is:
0.19% + DKK 0.54 per transaction (max. DKK 2.50)
What does Shopify PAY cost?
One of the great strengths of Shopify PAY is that it is simple - and so is the price, as there is no difference where a card is issued:
2.4% + DKK 1.8 per transaction
Note that with Shopify PAY there is no additional fee like there is with all other gateways. For example, if you have the Shopify plan, you save 1%.
The percentage rate decreases with sales, and there are several shops that have come under 2%.
What's cheapest for me then?
If you want the precise answer, you can of course calculate it. It requires you to have all your orders for a period, as well as the payment method used. Then you can calculate with the price for Shopify PAY.
I only sell to Danish customers
According to available statistics, about 70% of Danish online payments are made with a Dankort or VISA/Dankort where settlement is as Dankort. If your webshop is average, it is important that you can receive Dankort as it is by far the cheapest.
This also means a switch to Shopify PAY will be extremely expensive. How many times more expensive depends on several different factors such as order size.
I only sell to international customers
Then Shopify PAY can certainly be a good solution. Besides reducing administration, it can also be cheaper in many cases.
I sell to a mix of Danish and international customers
Then we need to look a bit more at the mix ratio to be able to say if it's a good choice. If you use separate shops, then it's just time to get started.
I need help!
Then you are welcome to contact us. We have the big spreadsheet and can help you clarify the cost and where you can save time.