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The resilience of Sweden’s payment system is under pressure due to global instability, and urgent measures are needed to ensure people can still pay for essential goods during crises, according to the Riksbank’s latest Payments Report.
In the report, the Riksbank highlights the need for offline card payments and continued access to cash as critical safeguards in times of increasing uncertainty.
With geopolitical tensions rising, it argues that Sweden’s payments infrastructure must be strengthened to handle potential disruptions.
Security over convenience
The alarming intervention from the central bank echoes the sentiment in other European countries that border Russia, with concerns being voiced across multiple industries.
“In light of the deteriorating security situation in Sweden and our neighbouring region, both public and private actors need to urgently step up their efforts to create a payments market that can withstand disruptions,” commented Erik Thedéen, governor of the Riksbank.
Thedéen added that the Riksbank is prioritising work on improving the possibility of making offline payments by card to strengthen resilience.
According to the central bank, one major concern is the inability to make card payments when internet access is unavailable.
As things stand, tap-to-pay and mobile payments do not work offline, leaving consumers at risk.
The report also pushes for a more interventionist approach from the Swedish government, stressing that it must play a more active role in payments, balancing innovation and competition with safety and accessibility.
The payments industry has historically prioritised efficiency, but the Riksbank says that recent events have shown that security and inclusivity are just as important.
To address these concerns, the central bank has set a target to enable offline card payments for essential goods by July 1, 2026, aligning Sweden with other Nordic and Baltic nations already implementing similar measures.
“We also urge the public to strengthen their own payment preparedness and to have both physical payment cards and cash available and to use these payment methods regularly," Thedéen said.
More transparency, more banking expectations
The Riksbank’s report urges the Swedish government to introduce regulations that improve payment system transparency, particularly regarding the fees charged to businesses.
It recommends a review of payment service pricing by the Swedish Competition Authority with the aim of boosting competition and better guaranteeing that merchants understand the costs they face.
This echoes work taking place in the UK, where the Payment Systems Regulator (PSR) has also focused on the need for more transparency pricing for card fees in recent years.
In particular, the Riksbank has called for Sweden to enable instant payments to a greater extent. Swish payments have always reached the recipient immediately, but since Autumn 2024, banks have been able to offer more services than Swish.
For example, this could involve purchases that are currently paid for by online bank transfers, but where both payer and recipient want to see that the payment has been received straight away.
The Riksbank has made this possible through changes in the underlying infrastructure, and says that the onus is now on the banks to offer new services.
Alongside its payments report, a new survey by the central bank found that half of the small business owners who participated want money to reach their accounts immediately instead of after one to three days.
“By eliminating intermediaries and shortening transaction times, the economic costs of payments are reduced, which benefits both businesses and consumers,” said Thedéen. “Companies can then have better control over their cash flow and improved liquidity.”
“Even the financially vulnerable with small margins will benefit when payments can reach them directly,” he said, adding that banks need to offer more instant payment services, “just as they do in our Nordic neighbours today”.
The report also calls on banks and payment service providers to modernise Sweden’s payment infrastructure, particularly for batch payments such as salaries and bills.
In addition, the central bank argues that the transition to international standards such as ISO 20022 is essential for resilience in a volatile global environment.
Financial inclusion
The Riksbank has also used the Payments Report to urge banks to offer more inclusive account options, particularly for individuals at risk of digital exclusion.
The central bank previously highlighted this issue last year, when it drew attention to the fact that some consumers and companies are denied access to a payment account, or have their account cancelled.
Its financial regulatory counterpart, the Finansinspektionen, has also noted the problem, and believes that banks should primarily try risk-reducing measures instead of completely refusing to open an account for a customer.
Despite this, the Riksbank says that the problem does not seem to have diminished, especially among certain groups and companies.
However, it also notes that reliable statistics are needed to get a better idea of the scale of the number of denied and cancelled accounts.
“These are serious social problems that must of course be countered. At the same time, we believe that more people should have access to a payment account with basic functions," said Thedéen.
Despite Sweden’s rapid move towards digital payments, the Riksbank also stresses the continued importance of cash, both as a backup in emergencies and as an accessible option for all consumers.
It recommends legal protections for cash acceptance and clearer obligations for banks to provide cash services.
The central bank also acknowledges the need to combat financial crime and suggests that Sweden consider introducing a cap on cash transactions, as seen in other EU countries.
It says that “anti-fraud work should remain a priority”, stating that those who are unfamiliar with digital payment services may be more likely to experience a fear of being victimised by fraud.
However, it is positive about the progress being made in this area, especially in terms of collaboration between public and private actors.
