Cash is on its way out in Sweden.
Between 2007 and 2015, cash in circulation decreased by nearly 15%.
And between 2010 and 2015, the number of cash payments in shops almost halved, from 39% to 20%.
At the same time, electronic payments have surged. Ninety-five per cent of Swedes have access to a debit or credit card, and made an average of 290 card payments a year in 2015. That’s well above the EU average, at 104 card payments per year.
What’s behind the change?
There are a number of reasons Sweden is becoming a cashless society. The birthplace of Skype and Spotify, Sweden is known as a high-tech and innovativecountry, so it’s no surprise that Swedes are embracing digital payments.
The majority of the Swedish population have smartphones and tablets and are happy to use them for financial transactions.
In addition, cash is expensive for banks, and so, according to the Swedish national bank, Riksbank, financial institutions are just as keen as consumers to switch from cash to electronic payments. There are fewer large banks, which means that cooperation on payments is relatively straightforward.
