Sweden is poised to become completely cashless – what does this mean for the future of payments?

Wallets are fast going out of fashion in Sweden, which could become the world's first cashless society. Swedes make about 80% of their on and offline purchases using mobile payments, credit or debit cards. But how did this radical change come about, and what's next for cashless around the world?

How has it happened?

According to a study from KTH, Stockholm's Royal Institute of Technology, Sweden's move to cashless is partly down to a revolutionary app called Swish. It's a collaboration between major Swedish and Danish banks that lets its users make speedy smartphone-to-smartphone transfers, all in real time. Some bank branches are now completely digitised and no longer accept cash.

The other big factor in Sweden's transition into a cashless society is the country's crackdown on organised crime and terror. It's claimed that digital payment systems make financial markets more transparent.

What's next?

With mobile payments like Swish rising in popularity throughout the world, it's thought that other countries could follow Sweden's lead into cashless. However, this will mean some countries' financial infrastructures will need to be revamped – any changes are likely to be a long time in the making.

Cashless hasn't completely taken over in Sweden yet, and there may be further innovation to come. Digital currency bitcoin, for example, has recently been making strides towards a more secure, safe way to pay. Near field communication, or NFC, could help further revolutionise cashless payments, installing radio technology in a shirt, ring or smartwatch. It would allow for instant, speedy payments without even needing to get your smartphone out.

What are the risks?

Scandals like the Samsung Pay hack, which saw the company's payment app targeted by a sophisticated cyber attack, have impacted consumer confidence in storing personal information online. That means, as ever, a constant focus on developing security systems will be essential for staying ahead of hackers.

Then there's the issue of too much choice putting people off. New finance apps come out daily, for everything from international money transfer to paying for yoga classes. So many options can be confusing, as most people are likely to only use one or two different payment systems, so services may find they need to synchronise. Digital wallets can be a useful solution to this, coordinating loyalty programmes and other services in one place.

Keep up to date with the latest financial developments with The Money Cloud blogs. If you'd like to know more about security when sending money overseas online, take a look at our broker comparison tool for detailed safety information on each of our providers. 

Comparison tool

Sending Currency
Buying Currency
Send USD Receive

Latest Articles

Fiona Aitkin

I've found your comparisons really useful and frequently refresh the page as we're about to pay a deposit on a house in Turkey. Pretty good.

Andy Ferguson

Format is very organized and incredibly informative. All the information is right there and it is all pertinent to what I need to know. Great work.
Purchasing overseas property - satisfying your currency needs for payment

EMIGRATING - TRANSFERRING YOUR ASSETS OVERSEAS

Moving overseas can be daunting, with many unexpected aspects to your move you might not have considered. We cover all the financial basics of moving abroad, from the expenses to consider to the most cost-efficient ways to transfer your bank accounts and financial assets to your new home.

France property

MAKING OVERSEAS PAYMENTS FOR BUYING PROPERTY IN FRANCE

When purchasing a property in France, we explain all the steps involved in the purchase. We can demonstrate how to make the most of your money when making the international payments to cover the purchase price and associated costs and how to avoid exchange rate risks.

Market Insights

Sign up for our newsletter.

Thank You for subscribing to our Newsletter

You have successfully signed up to our Newsletter