Sweden heads to cashless society 

Sweden is becoming a cashless society due to high consumer awareness of e-payments and card usage levels, a new report reveals.

Swedish consumers use cards with a frequency of 134.3 transactions per card per year – higher than the most developed markets, including the US, the UK and Germany, according to Timetric’s Cards and Payments Intelligence Center (CPIC). The use of cash now accounts for 19.1% of the overall payment transaction volume – significantly lower than that of card payments at 54.7%. Cards are now used for low value transactions at newspaper vendors, magazine sellers and even for church donations. As a result, the average card transaction value has declined to less than USD 50.

Card payments overtook ATM cash withdrawals in Sweden in 2002 and POS transactions now account for more than 90% of the overall card transactions. Banks are reducing their ATM networks, particularly in rural areas where cash use tends to be higher, resulting in a decline in ATM transactions. Merchants are also playing their part by forsaking cash payments in favour of e-payments. Retailers such as Kungsaengen and mobile service provider TeliaSonera do not accept cash payments at their outlets.

Although the government and the central bank are constantly endorsing e-payments, they are looking to ensure that the individual’s right to avail of basic payment functions such as cash transactions prevails. Around 50% of bank branches are now cashless with no facility for cash deposits or withdrawals, inconveniencing many customers. In this regard, the central bank, in March 2016, proposed a legal guideline for banks to provide their customers with cash services.

Source: THE PAYPERS – Sweden heads to cashless society due to increase use of e-payments, cards

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