Sweden
The largest Nordic economy, with a population of 10.4 million inhabitants, Sweden is one of the most developed, competitive and modern economies in the world, combining a system based on cutting-edge technology with a wide range of social benefits and high living standards. The Swedish economy’s leading position is also explained by other factors, such as a high degree of technological maturity, a leading innovative capacity, a very sophisticated business culture and a stable macroeconomic environment. The country’s excellence in research and development (R&D) makes Sweden an attractive location for international high-tech investors. The country’s healthy public finances are based on a strong fiscal framework and a political commitment to control public debt (36.3% of GDP in 2021). After recording 4.9% growth in 2021, the Swedish economy is expected to grow by only 1.8% in 2022, with rising inflation restricting purchasing power. The current uncertain environment and high inflation rates in Sweden’s main customers will have a negative impact on exports and investment. Main languages: Swedish. The following minority languages are recognised: Lappan or Sami (Lapland), Finnish, Meänkieli (a variant of Finnish spoken in the Tornedalen region), Yiddish and Chib Romani. Currency: Swedish krona (SEK)
Imports from Sweden registered a value of USD 187 billion in 2021 (USD 149 billion in 2020). The five main import product groups were Machinery and Appliances (25.4% of the total), Vehicles and Other Transport Material (11.1% of the total), Mineral Fuels (9.8% of the total), Base Metals (8.9% of the total) and Chemicals (8.6% of the total). Sweden’s exports registered a value of USD 190 billion in 2021 (USD 155 billion in 2020). The five main export product groups were Machinery and Appliances (23.3% of the total), Vehicles and Other Transport Material (12.9% of the total), Chemicals (10.3% of the total), Base Metals (9.6% of the total) and Mineral Fuels (6.9% of the total).Sweden recorded a surplus of USD 2 763 million in 2021 which represents an increase in the balance of USD 3 487 million compared to 2017 and a decrease of USD 2 757 million compared to 2020. The import-export coverage ratio stood at 101.5%, 2.2 pp below that recorded in 2020.
Sweden, to a certain degree, is more and more becoming a cashless society. Despite its small size, it was among the European countries least likely to use cash money. The use of cash declined for years, as the share of cash in total payment transactions reached around 12 percent. On top of that, the country is experimenting with its own digital currency, the e-krona. An experiment like that could eventually lead to the creation of one of the world’s first major CBDC – central bank digital currency, a cryptocurrency created and issued by a national monetary authority – further cementing Sweden as a global frontrunner in digital payments. From streaming services to fashion to furniture, Sweden is a world leader across verticals. As home to Klarna, it’s also at the forefront when it comes to alternative payment methods. Open invoices are now the second most popular payment method for ecommerce with a market share of over 50%. Card payments remain popular for ecommerce in Sweden, where most are made with a cobranded debit card featuring, Visa or Mastercard. As well as the aforementioned Klarna, Sweden is at the forefront of open invoice payments with 5-6 providers offering invoices. Another innovative Swedish payment method is Swish, an app-based direct transfer method owned by the local banks. Adyen offers Swish online and in-store. We also offer the alternative direct transfer option Trustly.
As well as the aforementioned Klarna, Sweden is at the forefront of open invoice payments with 5-6 providers offering invoices. Another innovative Swedish payment method is Swish, an app-based direct transfer method owned by the local banks. Adyen offers Swish online and in-store. We also offer the alternative direct transfer option Trustly. If Sweden do not use cash, how do they prefer to pay? Cashless payments are often referred to as “digital payments” and indicate any type of payment that does not involve physical coins or paper money. This can include transactions involving a mobile phone, but also includes card payments. This distinction matters for Sweden, as card payments ranked as the most popular offline payment method in the country. Most card payments consisted of debit cards – as the debit card transaction volume is roughly five times bigger than that of credit cards. The popularity of card payments extended to online shopping as well, although invoicing was a more popular way to pay for
e-commerce in 2020. Mobile phone payments are prevalent in Sweden, though, especially when consumers want to pay money to their friends. Source: Statista – Payment methods in Sweden – Statistics & Facts.
Top banks
As per Moody’s Investors Service, Sweden’s banking system is quite stable. The reasons behind this rating are the following: Sweden has strong operating conditions that allow the banking system to thrive. Secondly, its banking system maintains a low-interest rate which will help the profitability and asset quality to increase. Thirdly, Sweden’s economic growth is commendable that allows the banking system to evolve in the near future. As in economic growth, Sweden will outperform many economies in Europe. There are big 4 top banks in Sweden. The best part is these four banks have acquired around 80% of the total assets of the industry’s total assets.
Statista leading banks
Source: Statista – Leading banks for large corporations in Sweden in 2023, by market penetration rate We can divide banks into four categories – savings banks, commercial banks, foreign banks and cooperative banks. As you can expect, the four top banks in Sweden have got the major stakes and other banks are small to medium-sized banks.
Nordea
We have been helping our customers realise their dreams and aspirations for 200 years. That makes us proud – because when our customers succeed, we succeed. Our family tree of around 300 banks includes some of the oldest banks in the Nordic region. These banks were pioneers in the establishment of a commercial banking industry.
Danske Bank
Danske Bank is the fifth-largest bank in Sweden, and we serve personal and business customers and large institutional clients. Sweden is one of our core markets and our Swedish headquarters are located in Stockholm.
Handelsbanken
We operate on timeless values of trust and respect, for customers and colleagues. We aim to build lifelong relationships with our customers and to grow through their recommendation. Our branch teams are empowered to take all the decisions that matter to their customers, and to engage locally in the ways they find best.
Revolut
Let's simplify all things money Our global mission is for every person and business to do all things money — spending, saving, investing, borrowing, managing, and more — in just a few taps.
S|E|B
We offer universal banking services in Sweden and we are clearly the leading wholesale bank among large corporate and institutional clients. We have advanced our positions also among small and medium-sized enterprises, with several years of growing market share.
Top payment methods
Swish
Swish is an app-based payment method in Sweden. The service was launched in 2012 by six large Swedish banks, in cooperation with Bankgirot and the Central Bank of Sweden. By March 2021, the application – which can be used both online as well as in-store - had over eight million user accounts. It is estimated to have a daily active user (DAU) count of more than 200,000 people per day. Over two-thirds of Sweden's populationuse Swish to make payments. This mobile payment app was already more popular then the similar-functioning PayPal or ApplePay even before the coronavirus pandemic. Swish is a member of the European Mobile PaymentSystems Association.Swish is a wallet, popular among shoppers in Sweden. Shoppers can pay with Swish when shoppingonline or in-store using our terminals. When paying with Swish, the shopper is redirected to theSwish app, either directly on their mobile device, or by scanning a QR code on desktop. The amountis transferred to your account in real time.
Klarna
Klarna is a popular Buy Now Pay Later payment method availablein 19 countries. With Klarna, the shopper can choose to:·Pay later: Pay after the goods have been delivered.
·Pay over time: Pay in installments over time.
·Pay now: Pay the whole amount instantly, either by online banking or direct debit.Before approving the payment, Klarna performs risk checks on the shopper. If successful, Klarna takes on the full fraud risk for the payment, and pays you up front.
Walley
Walley is one of the leading payment method in theNordic region, providing shoppers with loyal andseamless Buy Now Pay Later experience. Customer baseis constantly growing, currently having 4 million activeusers. With a strong experience in credit risk andcollection, Walley is able to support both B2C and B2Bpayments with high authorization rate
NETS
Gift cards are stored value cards: payment cards with a monetary value that is stored on the card itself instead of in a bank account. Gift cards can be virtual or plastic cards. Some plastic gift cards can be reused by loading more funds, others are disposable cards that can't bereloaded. When a shopper wants to pay with a gift card that has a balance less than the full payment amount, you can let the shopper make a partial payment with the gift card and pay the remaining amount with different payment method. Depending on your integration, you might need to do additionalsteps to accept partial payments. See the page for your integration type for details. Gift cards can be specific to your business, or they can be used to buy goods or services from anumber of businesses. If the gift card can only be used for your business, then you receive the fundsupfront. When a shopper redeems a gift card, a request is sent to your gift card provider to removethe amount from the card. No funds are exchanged. If a shopper redeems a gift card with you thatcan be used at a number of businesses, you receive funds from the gift card provider. In Sweden, this solution is provided by Nordic gift card via NETS, a leading payments services groupcomprising three entities – NETS, Banking Computer Services (BCS) and NETS Solutions.
Paypal
Paypal is one of the market leaders in online payment solutions with more than 400 million active customers worldwide, available in 200 countries and in more than 100 different currencies. As faras online shopping payment is concerned, it is the one of the mostused payment method in France.
American Express
Accepted in more than 130 countries and with over 100 million cards inuse, American Express (AMEX) is a relevant payment method worldwide. AMEX cardholders spend on average three to four times more than Visaand Mastercard cardholders, making it of particular interest to premium and more sophisticated businesses.
Mastercard
As one of the largest card brands in the world, Mastercard dominatesthe co-branded card market in Europe. It is also the leader incountries like Austria, Brazil, Canada, Colombia, Germany, Hungary, Venezuela, and in the Benelux among others.
Maestro
Maestro is a debit product within the Mastercard offering. Maestrocards can be used for payments in stores and to withdraw cash fromATMs. This payment method requires electronic online authorizationfor almost all transactions, although Mastercard's rules allowminimum limits to be set only for Maestro EMV chip transactions.
Concluding remarks
In Sweden, various payment methods are commonly used, including:
Bank Transfers
This method allows individuals and businesses to transfer funds directly from onebank account to another. Bank transfers can be done online through internet banking or by visitinga physical bank branch.
Debit and Credit Cards
Debit and credit cards, such as Visa and Mastercard, are widely accepted inSweden. They can be used for both in-person and online transactions. Contactless payments withcards and mobile devices are also popular in the country.
Swish
Swish is a mobile payment system that allows users to transfer money directly betweenbank accounts using their mobile phone numbers. It is widely used in Sweden for person-to-personpayments, as well as for payments to businesses.
Mobile Payment Apps
here are several mobile payment apps available in Sweden, such as Klarna,MobilePay, and SEQR. These apps enable users to make payments, split bills, and transfer moneyusing their smartphones. Bankgiro and Plusgiro – Bankgiro and Plusgiro are payment systems commonly used by businessesand organizations in Sweden. They allow companies to receive payments from customers throughbank transfers or giro payments.
Cash
While the use of cash has been declining in Sweden, it is still accepted in many places,especially for small transactions. However, it's worth noting that some businesses, particularly inlarger cities, have transitioned to cashless operations.
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Processing News is an Online Wikipedia of the payment world. We collect and publish information about payment habits in different countries, describing methods that payers use in their daily life.
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