The Swedish payments market is almost entirely digital
The payments market in Sweden is almost entirely digital. Card payments are the most common method of payment, and more and more people are paying by mobile phone. Cash use is continuing to decline, with about one in ten purchases made with cash. In a survey by the Riksbank, around 70 per cent of small businesses say that they accept cash, although there are major differences between different sectors.
Published: 10 March 2025
Digital payment methods are becoming increasingly common in Sweden, and the use of cash has been declining for a long time. Sweden, together with Norway, has the lowest amount of cash in circulation as a share of GDP in the world (see figure 1). Other countries have higher cash levels, although the overall trend is downwards.
The trend towards more digital payment methods accelerated during the pandemic and has continued since, according to a report by the Bank for International Settlements (BIS). The demand for fast and secure digital payments has increased and instant payments are becoming ever more common. A study by the European Central Bank (ECB) shows a similar trend in the euro area, where consumers are increasing the use of digital payment methods and decreasing the use of cash. The trend is also fuelled by a shift from buying in physical stores to buying online. However, cash is often used for smaller purchases, under 50 euros, in shops in the euro area.