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Cashless Society of Sweden Driving Cards

and Payments Industry: Ken Research

Ken Research has announced recent publication titled

The Cards and Payments Industry in Sweden: Emerging Tren
ds and Opportunities to 2021
which discuss detailed analysis of the industry and forecast.
Report discuss various payment card markets operating in the
industry, and provides detailed information on the number of
cards in circulation, and transaction values and volumes during
the review period and over the forecast period (2017-2021). It also
offers information on the country's competitive landscape,
including the market shares of issuers and schemes. It also
discusses major government regulations pertaining to cards and
payments industry and marketing strategies used by various
banks and other institutions.

Sweden is dubbed as the most cash free society in the world with over
80% percent of transactions without the physical exchange of money. This
drive to a cashless society has been supported by theUN Capital
Development Funds Better Than Cash Alliance funded by the Bill &
Melinda Gates Foundation, MasterCard and Visa among others. The
Swedish has made most of this given support . Most of the people are
vouching for the cash free society with the slight exception of the elderly
who are finding it ..difficult to adjust to the rapid change in the payment
methods. Also certain vendors are cringing about the transaction cost
associated with online payments. Many banks in Sweden do not have
cash. About 900 banks of the 1600 banks neither keep cash nor accept it.
The shopkeepers donot want it ,the people dont carry it. The retailers
are legally entitled to refuse notes and coins. It is impossible to buy
tickets on the Swedish buses and Stockholm metro with cash.

According to Riksbank, cash transaction accounted to only 2% of value of

all payments last year and is estimated to drop by .50% by 2020. Cards
are the payment methods used the most by the people, with an average
of 207 transactions per card per year. This is followed by payments
through many other phone wallets , swish being the popular one. With
the introduction of iZellet , a cheap and easy system designed to take
card payments via a mini app and a small card reader has helped the
small traders , street vendors to adopt to cash less transactions. The
success of Sweden in adoption of cashless society lies in the fact that the
people there were digitally ready. The proliferation of mobile phones and
internet connections in Sweden is among the highest in the world,
making it easier to adopt new electronic payment systems. The banks
became digitized much earlier than rest of the countries

94% of Swedish are connected to the internet. The ecommerce

market in Sweden is blooming. More and more household have been
shifting towards online shopping. The e commerce market is
currently about 6 billion Euros. The major products being sold is
electronics, books, clothing and footwear. The e commerce accounts
for about 6% of the total retail sales. The most preferred payment
method is via invoice followed by personal bank accounts. However,
recently the paymet via yhe credit card is showing the biggest
growth. In 2016, Swedish banks expanded Swish, known as a
extensively used mobile app for online transactions. This app was
previously focused for peer-to-peer (P2P) and in-store payments. This
app, Swish is owned by six Swedish banks including Danske Bank,
Handelsbanken, Lansforsakringar Bank, Nordea, SEB and Swedbank.

Swish has grown in popularity since its launch, with 4.9 million
users in Sweden as of November 2016. In May 2016, USD 892.3
million (SEK7.5 billion) worth of transactions were performed using
Swish, rising to USD 994.3 million (SEK8.4 billion) in November
2016. Contactless technology is still at a nascent stage of
development in Sweden, with only a handful of banks-such as ICA
Banken and Danske Bank-offering contactless cards. The number
of contactless cards increased threefold from 439,707 in 2015 to
1.5 million in 2016, and is anticipated to reach 15.0 million by
2021. With a rising number of small businesses and street vendors
accepting payment cards for small-value transactions, the
introduction of contactless technology is expected to drive
payment card transaction volumes over the forecast period.

For more coverage Click on the link below

Related Links
The Cards and Payments Industry in the Philippines: Emerg
ing Trends and Opportunities to 2021
The Cards and Payments Industry in Denmark: Emerging Tr
ends and Opportunities to 2021
Ken Research
Ankur Gupta, Head Marketing & Communications

Thank you