Card turnover has returned after restrictions

The total card turnover in 2022 reached kr. 642 billion, which is 8 per cent larger than in 2021. The industries that were hit hardest by corona restrictions are now well on their way to or above their level from 2019, which is the most recent year without corona restrictions.

Comeback to the card turnover in several industries
Note: The chart shows development in card payments made in Denmark with Danish as well as foreign payment cards, both in physical trade and in e-commerce.

|

The card turnover shows the total value of all payments made in Denmark with Danish as well as foreign payment cards, both in physical trade and in e-commerce. Besides corona shutdowns, the card turnover is also affected by other conditions, e.g. changed payment and consumption habits and inflation.

Comeback to the hardest-hit industries

When the Danish government introduced corona restrictions in 2020 and 2021, some industries were hit harder than others. Among the hardest-hit industries are restaurant and bars, entertainment, hotels and travel agencies, including airlines.

Comparing the 2019 levels for the card turnover within each of the aforementioned industries to the corresponding levels for 2020, 2021 and 2022, one clear picture emerges: The levels dropped sharply from 2019 to 2020 and remained at a low level in 2021. By contrast, in 2022 the hardest-hit industries all moved towards the 2019 level. Except for travel agencies and airlines, the industries now have a larger card turnover than before the coronavirus breakout despite the fact that card turnover increased by as much as 89.6 per cent from 2021 to 2022.

For hotels, the card turnover was thus down to index 55 for 2020 and 68 for 2021 but jumped to 111 for 2022 with 2019 as base year. For entertainment, the index rose from 65 for 2021 to 112 for 2022, while for restaurants and bars it rose from index 85 to 122.

In 2022, consumer prices rose to a significantly higher level than in 2021 and will, other things equal, increase the card turnover. For that reason, the increased card turnover does not necessarily mean higher real consumption.