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Danske Bank still losing money but gaining market share with MobilePay

TheCopenhagenPost
August 5th, 2015


This article is more than 9 years old.

Bank plans to eventually make profit from business users

Business users pay for MobilePay (photo: Flickr/Christian Jensen)

No-one can deny the success of Danske Bank’s easy payment app MobilePay – its name even became the word of the year in 2014.

READ MORE: English word is Danish word of the year

But TV2 News reports that popularity and profitability don’t yet go hand in hand for the product, since the bank still foots the bill for charges relating to the 240,000 daily private transactions.

READ MORE: Easy payment app costs Danske Bank a fortune

With each transaction costing between 0.7 and 1.39 kroner, the annual cost is in the region of 80 million kroner.

Building user-base
Mark Wraa-Hansen, the product head at Danske Bank, explained that this is not a concern for the bank, since its focus is to build the user-base and eventually make money from commercial contracts.

“Of course our goal is in the long-term to make money from the solution. And we believe we will come to do so,” he said.

“We’re building one commercial service after the other and that’s where the profit will come from in the future, when we start to take the market share from card use and especially cash.”

For companies to use MobilePay as a payment solution, different solutions are available and charges apply. For example, MobilePay Business costs the retailer 1 percent of the transaction price up to a maximum of 5 kroner per transaction.


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A survey carried out by Megafon for TV2 has found that 71 percent of parents have handed over children to daycare in spite of them being sick.

Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

Pill pushers
At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”