Balancing the Shift: Ensuring Equitable Access to Cash Payments in Sweden

While Sweden has often been praised for its progression towards a cashless society, recent data from the Riksbank indicates a notable decline in the circulation of notes, with a 10% decrease observed in 2023, writes Finextra. Despite this trend, there is a growing sentiment among Swedes, with 44% expressing dissatisfaction with the diminishing use of cash, compared to 36% in 2022.

In response to these concerns, the central bank advocates for mandatory acceptance of cash deposits by banks, a practice currently not universally implemented. Furthermore, the Riksbank highlights the importance of ensuring robust cash management systems, citing the reliance on a single private company for physical currency transportation to retail establishments. The government is urged to devise strategies in collaboration with the Riksbank and commercial banks to guarantee continued cash transport in case of system failures.

In parallel, there is a call for banks and payment service providers to accommodate individuals facing challenges with digital technology. Suggestions include the wider adoption of biometric solutions to streamline payments and identification processes. Additionally, attention is drawn to the issue of financial exclusion faced by certain individuals and businesses deemed high-risk by banks. The recommendation is for banks to offer accounts with limited functionalities to broaden access to payment services.

Erik Thedéen, Governor of the Riksbank, emphasizes the inclusivity of payment systems, asserting the ongoing importance of cash alongside digital alternatives. He stresses the necessity of legislative measures to ensure equitable access to payment methods and advocates for expanded access to payment accounts by financial institutions, asserting their critical role in facilitating present and future transactions for all.