The already popular contactless payments will see a sharp surge in usage in Sweden, though the overall decline in consumer spend will see payment companies lose out, says GlobalData, a leading data and analytics company.

GlobalData’s 2019 Banking and Payments Survey found that travel and accommodation accounted for 21% of the country’s total debit card transaction value. However, consumers moving away from cash will see total card transaction value rise at a compound annual growth rate (CAGR) of 2.1% to 2023, down from 2.7% before the pandemic, according to GlobalData.

Ravi Sharma, Banking and Payments Analyst at GlobalData, comments: “Increased contactless limits and a change in consumer attitudes will drive contactless usage in Sweden. Also, the recent advancements in the payments industry will further complement Swedes’ high preference for non-cash payments.”

Online sales particularly are expected to rise. GlobalData forecasts the total value of E-commerce sales to rise at a CAGR of 10.5% up to 2023.

Sharma concludes: “Online spending is also likely to surge as wary consumers are staying home and increasingly opting for online channels to purchase goods and avoid public contact. Sweden-based furniture giant Ikea has witnessed a 200% spike in its online sales since the pandemic, against the same period last year. The rise in e-commerce is expected to benefit popular online payment tools such as PayPal, Klarna, Swish and Masterpass.”