Sweden is currently set to be the first cashless society by 2023 - 362 years after being the first European nation to adopt banknotes in 1661. This move has been made possible through the introduction of Swish, a mobile payment system which was first launched in 2012.
This would account for the decline in alternate payment methods over the past four years, as 50% more of the Swedish population are now using Swish compared to 2014.
Cash usage in Sweden by payment size
Percentage of population who use Swish:
Swish use - February 2019
The majority of transactions made via Swish are private, including peer-to-peer payments. Despite this, there has been a drop in the average number of private Swish transactions per customer over the past year, going from 3.81 in 2018 to 3.34 in 2019.
Perceived security of online payment methods
This drop may be due to the perceived insecurity of the mobile payment system, with a recent survey revealing that Swedes consider Swish to be the least secure payment method compared to invoices, PayPal, online banking and credit cards.
This concern is mirrored in the US, where 40% of consumers who don’t use mobile payments cite security concerns as a major reason, and in the UK, where 40% of survey respondents were reluctant to put their personal details onto their mobile.
Global Payment Trends: The Impact of a Digital Society
Global Payment Trends dissects industry reports to see how digital payment methods have risen in popularity, and reveal how quickly we're moving away from cash. The report also looks at Swish, Sweden's mobile app, to see how many people are currently using digital banking and whether they're really ready to go cashless. Finally, the report sheds light on the members of society who would suffer in a digital society, due to their cash dependence. Focus throughout is primarily on Canada, Sweden, the UK and the US.
Data gathered from a range of reports, including Worldpay, Link, Riksbank, Swish, WHO and Mind.
Sources: