The Swedish payment settlements market has become almost fully digital, with most transactions being settled by card or using digital payment platforms. Sweden and Norway have the lowest levels of cash in circulation globally, with only 1% of each country’s GDP being circulated in cash. Meanwhile, the EU average is 12%. Although around 50% of respondents to a 2025 survey conducted by Sweden’s Riksbank reported using cash in the 30 days prior, only 10% of transactions in physical stores were found to be settled in cash. The digitalization of payments in Sweden is further boosted by the widespread use of Swish, a mobile platform co-created by a consortium of the country’s largest banks, which is used for account-to-account payments to private individuals and retailers. The digitalization trend is similar in other Scandinavian countries. In Norway and Finland, over 95% of all payments are settled digitally, using either debit cards or the Vipps Mobile Pay platform, which functions similarly to Swish.
Despite the already low cash circulation, the amount of cash settlements continues to decrease in Sweden. While in 2010, approximately 40% of all transactions were paid in cash, this percentage fell below 10% in 2022. It increased only slightly the following year as consumers used their cash reserves in response to Russia’s invasion of Ukraine. Many Swedish retailers also prefer card payments to provide a convenient customer experience and decrease administrative work for their employees. However, according to Riksbank, such dependence can become problematic in the event of a large-scale crisis that threatens the electricity supply and network disruptions. For this reason, the Swedish authorities have recently issued a recommendation that each adult hold at least 1,000 SEK (approximately 92€) to cover necessary emergency purchases.
However, Sweden’s dependence on digital payments remains high and entails a geopolitical exposure for the country. Swedish authorities and payment systems are vulnerable to cyberattacks, which have increased since 2023, according to the Swedish Armed Forces (Försvarsmakten). Russian hacker attacks have indeed become a recurring theme following the outbreak of the Ukraine War, as exemplified by the 2024 DDOS attack against authorities’ websites, including the Swedish Parliament and an attempted attack against a major heating plant a year later. An important wake-up call regarding payment systems was the 2025 DDOS attack against BankID, the Swedish digital banking identity used by 8,6 million Swedes for online payments and e-verification. Despite campaigns by local authorities and social movements, such as Kontantupproret (Cash Riot in English), highlighting the importance of cash payments, many retailers often still refuse to accept cash as a payment method.
Amid strained EU-US relations, warnings are beginning to arise regarding Swedish and, by extension, broader European overdependence on American card and digital payments providers. A striking example of this overreliance is the recent US sanctioning of an International Criminal Court (ICC) judge who had issued an international arrest warrant against Benjamin Netanyahu, and who found himself locked out of most digital payment services, with no equivalent European services available. In recent statements, Riksbank’s director Erik Thedéen and two Swish company representatives called for a swifter development of European and domestic payment solutions. An example of a European project Sweden could become a part of is Wero, a digital payment platform co-founded by major European banks in 2024, which has since seen gradual adoption across the German, French and Benelux markets. Moreover, according to statements from Riksbank and Swish, overreliance on US-based companies reduces Sweden’s economic sovereignty while leading to increased consumer prices due to high transaction fees. After recurring disruptions, Riksbank has also drawn attention to Swish’s dominant market position and recommended developing alternatives to the service.
In response to the warnings, Sweden has been gradually taking steps towards reducing its digital dependence. In July 2026, a new “cash law” will enter into force, requiring key businesses such as pharmacies and grocery stores to accept cash payments while imposing stronger requirements on banks to increase ATM coverage nationwide. Furthermore, the Riksbank is actively investigating the possibility of issuing digital currency (the e-krona) alongside regular bills. According to Riksbank, the e-krona would also function offline, offering Swedish consumers a secure alternative in the event of large-scale disruptions. Moreover, a digital currency would ensure that every deposited Swedish crown could be exchanged for physical currency issued by the national bank. This would also increase market competition in the payments sector as private firms would be able to utilize a new type of independent payment solutions.
However, to safeguard its economic security against hostile powers and reduce overdependence on foreign payment solutions, Sweden should pursue further steps in securing its payments infrastructure. Since 2023, the Riksbank’s technical development of the e-kronor project has been discontinued until further notice, leaving vulnerabilities unaddressed. Moreover, the current Swedish BankID system is jointly owned by the country’s largest banks, which creates potential cybersecurity risks compared with a state-owned e-identification system. Sweden should therefore resume the digital currency effort, pursue a nationalized BankID system, and actively encourage cash as a viable payment option wherever possible. To reduce dependence on major card issuers and payment platforms, market competition should be carefully investigated and more local, non-US alternatives encouraged. Lastly, Sweden should actively engage in EU-wide collaboration by integrating its national payment solutions with those of other countries and participating in pan-European digital payment systems such as the Wero platform.
Recommended Readings:
Cervenka (2026) Swish: Sverige alltför beroende av amerikanska betaljättar [Swish: Sweden Too Dependent On American Payment Giants]
Corlin (2026) US sanctions turn International Criminal Court judge’s daily life into a nightmare
Söderlund (2025) Hotet ökar för attack mot kontantlösa Sverige [The Threat of Attack against Cashless Sweden Is Increasing]
Sveriges Riksbank (2025) Betalningsrapport 2025 [Payments Report 2025]
Sveriges Riksbank (2026) E-krona
TT News Agency (2022) Svenskarna överger kontanterna [The Swedes Are Abandoning Cash]