Public- and private-sector organisations in Sweden need to “urgently step up their efforts to create a payments market that can withstand disruptions”, the Scandinavian nation’s central bank’s governor has warned.
Sweden’s payments market has evolved in recent years to become ‘almost entirely’ digital, according to the Riksbank (central bank), meaning that topics including maintaining access to cash already have heightened political prominence.
But in an announcement accompanying the release of a ‘Payments Report 2025’, Erik Thedéen said that “in light of the deteriorating security situation in Sweden and our neighbouring region”, the central bank is “prioritising work on improving the possibility of making offline payments by card to strengthen resilience.”
The possibility to pay by card when the internet is not working – ‘so-called offline payments’ – is an area that ‘the Riksbank believes needs to be improved considerably, particularly in light of the geopolitical unease in the world,’ according to the announcement (‘Global environment puts pressure on payments system resilience’). ‘The possibility to pay offline in Sweden is currently limited and does not work at all if you tap your card or use your mobile phone for payments,’ the central bank states. ‘In addition, these contactless payments contribute to more people forgetting their PINs and losing track of their cards.’
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In the report, Sweden’s central bank emphasises that the state needs to play an ‘active role in the payments market to contribute to innovation, competition and resilience, among other things.’
‘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,’ the central bank notes.
‘Cash remains an important payment option, not only for contingency planning reasons, but also for people who, for various reasons, are unable or unwilling to access digital services,’ it explains.
The Riksbank believes that legislation is required to maintain the use of cash. A ‘Cash Inquiry’, appointed by the Ministry of Finance, presented such proposals at the end of last year. The Payments Report 2025 notes that cash usage in Sweden continues to decline, with just one in every ten purchases made in cash.
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