The Riksbank’s responsibility for payments

The Riksbank’s mandate in the area of payments

According to the Instrument of Government, the Riksbank shall promote a well-functioning payment system. Pursuant to the Sveriges Riksbank Act, the Riksbank shall “contribute to the stability and efficiency of the financial system, including the ability of the public to make payments”. The Riksbank shall provide a system for the settlement of payments, contribute to the availability of cash to a satisfactory extent throughout Sweden, and ensure that the public can make payments in peacetime crisis situations and states of heightened alert. The Riksbank may, with the consent of the Riksdag, issue digital means of payment. 

The following objectives guide the Riksbank’s work on payments

Payments shall be safe

The payments system shall be stable, resilient to disruptions in normal times and able to function in peacetime crises and states of heightened alert. It shall be possible to use multiple payment methods so that payments can be made even if there is a disruption in any part of the payments system. Protection against fraud shall be high. The payer and payee shall be confident that the payment will be received and that the cash received is genuine, and that identity data and card details are not disclosed and used by unauthorised persons.

Payments shall be efficient

The costs to society, including energy consumption, for different methods of payment shall be low. Fees shall be transparent and payments shall be quick and easy. There shall also be healthy competition between operators offering payment services. This means, among other things, that the payments system shall be accessible to different types of operator who want to offer payment services.

Payments shall be accessible

It shall be possible for everyone in Sweden to pay at a reasonable cost. Users shall have good access to payment services and there shall be different payment methods to choose between, depending on the situation and conditions.

The objectives of safe, efficient and accessible payments can sometimes be reconciled, but they also in conflict with each other.

The Riksbank’s role in the payments market

The Riksbank takes an economic perspective and provides solutions and acts where it is difficult to achieve safe, efficient and accessible payments without central government intervention. The payments market is characterised by economies of scale and network effects, which can lead to a high degree of market concentration and a lack of competition and innovation. The characteristics of the payments market also mean that accessibility and resilience may be too weak without central government involvement. The Riksbank therefore needs to take an active role in the payments market. The role of the Riksbank depends on changes in the world around us and how well the market itself can fulfil society's need for safe, efficient and accessible payments.

In some cases, this involves the Riksbank providing services, either on its own or in cooperation with private operators, such as finalising payments between participants in the RIX payment system. In other cases, the Riksbank acts as a catalyst, enabling coordination, dialogue and creating conditions for private services and solutions. The Riksbank can also act as a standard setter. In addition, the Riksbank takes part in the design of regulations nationally and internationally. The Riksbank also oversees financial infrastructures and other key players in the payments ecosystem and monitors developments on the payments market.