Sweden cashless transition and digital exclusion

Sweden is undergoing a rapid transition toward a cashless society, with cash payments dropping from approximately 40% in 2010 to roughly 5% recently. This shift has introduced two primary challenges: security risks and social exclusion.

Regarding security, the Riksbank has noted a rise in counterfeit banknotes. Additionally, new fraud methods have emerged that bypass traditional BankID security. Scammers pose as service providers to trick victims into installing screen-sharing applications, allowing criminals to control mobile devices and execute unauthorized transfers via services like Apple Pay without requiring passwords or BankID authentication.

Simultaneously, the decline of physical cash and traditional banking services has intensified digital exclusion. Vulnerable groups—including the elderly, low-income earners, people with disabilities, and foreign-born citizens—face difficulties accessing essential digital services. Specifically, individuals with intellectual disabilities face hurdles because they cannot obtain their own BankID, which complicates the ability of legal guardians to manage essential online purchases on their behalf.

The reduction of ATMs and the requirement for appointments at physical bank branches have further complicated access. Complications have arisen when authorities, such as Skatteverket, refuse cash payments, potentially leading to debt collection through Kronofogden for those unable to use digital systems. In response to these social challenges, the government has earmarked 25 million SEK annually through 2028 for the PTS agency to provide training and physical help points.