Sweden lags behind the rest of the Nordics in instant payment services
News It is not uncommon to have to wait for the money to arrive in your account after returning goods in store or when making a transfer via online banking. Most bank customers in Sweden do not have the possibility to make instant payments to recipients with another bank, with the exception of the Swish app. The situation is different in the other Nordic countries, where almost all bank customers have access to instant payment services via online or mobile banking. These are the findings of a new comparative study on payments by the general public in the Nordic countries, produced by the Riksbank together with the other Nordic central banks.
Paying digitally is popular throughout the Nordic region, with all Nordic countries topping the list for cashless payments in shops. Cash is least used in Iceland and Norway, where only 2 per cent of in-store purchases are paid for in cash.
“There are many similarities in our payment methods in the Nordic countries. The vast majority of people prefer digital payment methods, cash usage is low and the most common payment method is by card. But in this study we have also seen some differences that are probably explained by the historical development of payment services in each country,” says Christina Wejshammar, Head of the Payments Department at the Riksbank.
“For example, Sweden, Norway and Denmark have a long tradition of banks offering common payment solutions – such as the Swish app and direct debit. This has enabled people to make payments to others regardless of their choice of bank,” continues Christina Wejshammar.
Many payments in Sweden are made using Swish, especially online and between private individuals. In Norway and Denmark, the use of counterparts to Swish, Vipps and MobilePay, is also popular for payments and transfers. In Finland, similar services have not had the same impact and there is no equivalent in Iceland. One explanation may be that banks in Iceland have offered instant payments along with user-friendly online and mobile banking solutions as alternatives.
Swish payments are currently made via the Riksbank's RIX-INST system. This is basically the only type of payment that reaches bank customers in Sweden immediately. Paying a bill via online banking so that payment reaches the recipient directly is currently not possible at any of the major Swedish banks. Nor can businesses make instant payments between one another, as Swish does not cover such payments. In the other Nordic countries, however, the situation is different. In those countries, most of all bank customers can make instant payments via online or mobile banking.
“When it comes to access to instant payments, there are major differences between Sweden and the other Nordic countries. Swedish banks could offer this to their customers to a greater extent, as we at the Riksbank have opened up our payment system to make it possible. But so far, there has been little interest from the banks,” concludes Christina Wejshammar.
“Payments in the Nordics” provides an overview of the payments market and infrastructure in the Nordic countries. The study was produced by the central banks of Sweden, Denmark, Finland, Iceland and Norway. The entire study is available on Danmarks Nationalbank's website. Please note that several figures are based on calculations and assumptions.