Report reveals key factors driving contactless payments in Sweden

The latest advancements in the payments industry will further complement high online payment preferences

contactless payments

Report reveals key factors driving contactless payments in Sweden. Source: unsplash.com

GlobalData found that increased contactless limits and a change in consumer attitudes will drive contactless usage in Sweden.

Along with that, contactless payments will see a sharp rise in usage in Sweden, although the overall decline in consumer spending will lead to payment companies’ losses.

According to the statistics, travel and accommodation accounted for 21% of the country’s total debit card transaction value.

Nevertheless, the fact that consumers moving away from cash expected to bring total card transaction value rise at a CAGR of 2.1% by 2023, compared to 2.7% before the pandemic.

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
Ravi Sharma, Banking and Payments Analyst at GlobalData

We’ve reported that nearly half of Germans are currently using cards more often than cash. This shift is apparent in common for all age groups, but especially for middle-aged people.

SEE ALSO: