17 Aug 2020
Posted in Insurance
Sweden set to become world’s first cashless society as it country embraces contactless
Contactless payments and online spending will continue strong growth post-COVID-19, as Sweden leads the global race to become a cashless society. Cash accounted for just 1.1% of the country’s overall payment transaction value in 2019, according to GlobalData, a leading data and analytics company.
The data analytics company forecasts the Swedish e-commerce market to grow at an annual rate of 19.3% in 2020, compared to the previous estimation of 10.5%.
Ravi Sharma, Retail Banking Analyst GlobalData’s, comments: “Contactless payments in Sweden is already growing at a faster pace, with Swedes increasingly making contactless payments in shops, restaurants and cafes. As a result of the pandemic, its usage is expected to become even more popular. The growing acceptance of contactless payments will support the adoption and use of NFC-enabled mobile wallet solutions, such as Apple Pay and Google Pay.”
The transaction value of ATM withdrawals is set to decline by 10.5% in 2020, compared to 7.1% before the pandemic.
Sharma continues: “This clear acceleration in consumers switching from cash to e-commerce will become learned behaviours for consumers, who will continue to move towards contactless and online payments beyond the COVID-19 crisis.”
Information based on GlobalData’s report: Covid-19 Sector Impact: payments snapshot –Sweden