The Swedish payments landscape, known for its innovation and progressive stance on digital payments, continues to lead the charge in cashless transactions. The country’s payment ecosystem in 2024 is characterised by a robust digital infrastructure, the widespread adoption of mobile payments, and a supportive regulatory environment.
Market Overview
Sweden’s payment landscape is marked by a high rate of card usage, with 367.4 payments per capita, surpassing the EU average. Debit cards dominate the market, branded primarily under Mastercard and VISA.
Swedish banks, including Nordea, Handelsbanken, SEB, and Swedbank, are key players, focusing on both card and account-based payment services. Notably, Swedbank and NETS rank among the top ten acquirers in Europe by transaction numbers.
The immediate payment service, Swish, has become integral to the Swedish payment system. Operated by Getswish AB, Swish facilitates rapid account-to-account (A2A) payments and has seen widespread adoption.
By 2023, the number of Swish payments rose to 910 million, a significant increase from previous years.
Digital Payment Services
The digital payment landscape in Sweden is evolving with innovations such as contactless payments, mobile payment apps, and digital wallets.
The Click to Pay online payment service, a collaboration between Mastercard, Visa, Discover, and American Express, has been introduced, enhancing secure online transactions without the need for card details or passwords.
Apple Pay, Samsung Pay, and Google Pay are popular contactless payment methods in Sweden, processed as card payments at POS terminals. This trend reflects a global increase in contactless transaction values, projected to reach $10 trillion by 2027.
Legal Framework
The legal framework governing payment services in Sweden is heavily influenced by European Union regulations.
The Revised Payment Services Directive (PSD2) has been pivotal in shaping the Swedish payment landscape.
PSD2 mandates secure customer authentication and open banking, enabling third-party providers to access bank account data, fostering innovation and competition within the financial sector.
The upcoming PSD3 and Payment Services Regulation (PSR) proposals by the European Commission aim to further enhance consumer protection and regulatory harmonisation across the EU. These revisions are expected to address the evolving needs of the digital economy and ensure the continued security and efficiency of payment services.
Emerging Trends
Several trends are shaping the future of payments in Sweden. The rise of mobile banking apps, which combine account management with personal finance tools and digital services, is transforming how consumers interact with financial services.
The popularity of Swish, with over 8.5 million users in 2022, underscores the shift towards mobile and digital payments.
Additionally, the integration of digital ID services like BankID with payment platforms facilitates secure online transactions and access to various services. This synergy between digital payments and digital identity is crucial for the continued growth of the cashless ecosystem in Sweden.
Sweden’s payment landscape in 2024 exemplifies a highly advanced and digital-centric ecosystem.
The country’s commitment to reducing cash usage, coupled with innovative digital payment solutions and a supportive regulatory framework, positions Sweden as a leader in the global payments industry.
As mobile and digital payments continue to evolve, Sweden is set to maintain its pioneering status, offering consumers and businesses a secure, efficient, and convenient payment environment.
Key Statistics 2022
Population: 10.52 million, with 1.73 cards per capita.
Total card payments: 3.86 billion, valued at SEK 1,168.4 billion (€109.92 billion).
Debit card payments: 3.24 billion transactions, worth SEK 922.3 billion (€86.77 billion).
POS terminals: 207,450.
Swish payments: 910 million transactions, valued at SEK 453 billion.
Digital A2A credit transfers: 2,104.4 million, valued at SEK 23,262.2 billion.
This comprehensive overview underscores Sweden’s ongoing transformation into a predominantly cashless society, driven by innovation and regulatory foresight.
The Digital & Card Payment Yearbooks provide the latest data on the European and Eurasian digital payment and card payment markets at granular country and regional level.
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