trading online

80 percent of all payments in Sweden are made without cash. Even half of the banks already operate without cash. Why is the country so far ahead? The Swedes are a modern people and are generally very open to IT technology. If a technology appears inexpensive, secure and practical, it is readily adopted. But the secret of Sweden's pioneering role in cashless payments does not lie solely in its tech-savvy population.

Payment in Sweden

Germany is a cash country. Consumers can pay exclusively in cash in many places in this country. Drinking establishments, market traders, bakers and many other providers are not even set up for cashless payment transactions. But customers also like to pay in cash. Almost without exception, Germans pay amounts between 20 and 50 euros in cash. In Sweden, things are different. There, most payments are made without cash, and Swedes settle even small amounts quickly and easily with a card or smartphone. An app called Swish is particularly widespread, with which any desired amount is sent to the recipient's mobile phone number via instant transfer.

forex trading

Why do Swedes like to pay so much without cash?

The enthusiasm for new technologies is certainly partly due to Sweden's demographic structure: in comparison, it is younger than the EU average and therefore probably tends to be more open to technical innovations.

But the banks have also done much to promote cashless payments. After all, the banking system in Sweden is very different from that in Germany. The following factors have accelerated progress:

    Unlike in Germany, all banks jointly control all ATMs through an outsourced company. This means that the ATMs are unrivaled. In recent years, the banks have made ATMs increasingly unattractive to customers. The number of ATMs has shrunk by about half. In addition, banks have limited the daily withdrawal amount from 5,000 crowns (about 500 euros) to 1,000 crowns (about 100 euros). Cashless payments are now much more attractive than cash from ATMs.
    Many banks in Sweden no longer accept cash, and half of the banks operate without cash at all. Nevertheless, in order to have the gift of money to the grandchildren or the day's takings credited to the account, consumers and entrepreneurs have to put up with an elaborate declaration process. These rules serve to combat black money.
    At the same time, many offers and apps such as Swish ensure that cashless payments are easy and secure.

As a result, there is a situation in Sweden where the krona remains legal tender but is often not accepted in stores. This is because merchants have problems crediting their daily takings to their accounts. At the same time, demand for the classic method of payment with bills and coins is falling, as cash is also harder for consumers to obtain.


    Cashless payment is widespread in Sweden.
    Banks or brokers like, which now often operate completely cashless, have played a major role in this.
    Apps for smartphones have revolutionized cashless payments. Here, the customer transfers the money directly to another mobile phone number.
    For some merchants, many senior citizens, and residents in the north of the country, the rapid switch is problematic.