Skingsley: Challenges on the payments market must be met
"It is positive that the market for payments is developing and can meet new payment needs. But the challenges that arise must also be dealt with so that people don't suffer negative consequences". These were among the comments made by Cecilia Skingsley, Deputy Governor of the Riksbank, when answering questions during an open hearing at the Riksdag Committee on Finance today.
The Riksbank monitors the payment market as a whole. Cooperation is needed to meet the challenges that exist.
Positive developments on the payments market
The consumers need simple, quick and safe payment services and the companies are continually improving the efficiency of their work processes. Consequently, the payments market changes quickly. Sweden is already at the forefront with regard to the development and use of electronic payments. Cash has therefore met with tough competition from new, innovative methods of payment. This is positive in many ways, but as in the case of all changes it also entails challenges.
Difficult in certain situations
Without cash it may be difficult for people to pay for a half-time cup of coffee at a child's football match, to purchase an item at a jumble sale or to pay in areas where there is no mobile coverage. People who for one reason or another are unable or unwilling to pay other than in cash may find it difficult to shop at all. This includes minors who are not permitted to have cards, those who cannot afford a smartphone or those who find it difficult to adopt new technology.
Problems also arise when depositing cash as the number of points at which this is possible has fallen. This primarily affects associations with temporary needs and small-business owners in locations where no deposit services are available through a bank or machine and where daily-takings services are expensive.
"These are complicated challenges that require different solutions. All of the players on the payments market must cooperate to find solutions. The Riksbank takes no stance on the payment methods used as long as they are safe and bear their costs," said Cecilia Skingsley.
Follow the link to see the slides shown by Ms Skingsley during her presentation at the hearing of the Committee on Finance.
IN BRIEF
The most common payment methods
The most common payment methods in Sweden are cards, cash and credit transfers. Cash is used relatively little in Sweden, compared with other countries, while cards are very common.
Development is proceeding rapidly. New payment services are being launched on the market and new players are becoming established. Card payments and payments made via mobile phones are growing most rapidly, at the same time as the technical systems that mediate payments are constantly being improved. The same fundamental trends can also be seen internationally.
Statistics from the report "The payment behaviour of the Swedish Population 2014", the Riksbank
- 98 % have access to bank cards and 93 % had used a bank card to make private payments within the last month.
- 96 % have access to cash and 87 % had used cash to make private payments within the last month.
- 23 % used cash when they last made a purchase.
- 52 % mainly use cards for purchases below SEK 100.
- 41 % mainly use cash for purchases below SEK 100.
- Over 40 % have access to e-payment services (Swish, Paypal, SEQR etc.) and over 23 % had used e-payment within the last month.
Players on the payments market
Examples of players on the payments market include:
- Swedish Bankers' Association
- Pan-Nordic Card Association
- Confederation of Swedish Enterprise
- Swedish Trade Federation
- Swedish Consumers' Association
- Bankgirot
- National Post and Telecom Agency
- Dalarna County Administrative Board
- Ministry of Finance
- Finansinspektionen
- Swedish Competition Authority
