According to Riksbank, the digitalisation of Sweden's payments market has facilitated faster and smoother transactions, improving overall efficiency. However, alongside these advancements, challenges have emerged, with certain segments of society encountering digital and financial exclusion, while fraudulent activities pose significant concerns. To sustain Sweden's position in payment systems, the Riksbank advocates for various measures aimed at enhancing safety, efficiency, and accessibility.
Riksbank's governor emphasised the necessity for inclusive payment solutions, acknowledging the potential long-term shift towards digital payments while underlining the ongoing importance of cash. He called for legislative support to uphold cash usage and urged banks to expand access to payment accounts, essential for ensuring broad payment capabilities both presently and in the future.
In essence, the government and Riksdag are urged to address cash management through legislative measures. An inquiry has been commissioned to explore the feasibility of cash payments for essential goods, including food and fuel. Riksbank suggests extending the inquiry's scope to encompass the transportation of cash to and from retail outlets at reasonable costs, proposing roles for various stakeholders including banks and regulatory bodies. Furthermore, Riksbank advocates for legislative changes obligating banks to accept deposits of banknotes and coins from individuals, a practice currently not mandatory.
To address exclusion from payment services, it has been recommended that banks offer limited functionality accounts to individuals, companies, and associations deemed as risky customers. Additionally, the adaptation of services for individuals facing digital technology challenges is encouraged, with suggestions such as biometric authentication. Pricing adjustments for over-the-counter and postal giro payments are also proposed to facilitate access.
Concerns are raised regarding the deposit limits imposed by banks on cash transactions, potentially discouraging companies and associations from accepting cash payments. Efforts to improve preparedness in the payment system are ongoing, with regulations requiring companies to maintain payment operations during crises. Collaboration between Riksbank and companies aims to strengthen collective capabilities, including the enhancement of offline payment solutions.
Continued work on the e-krona, a digital currency, is highlighted as very important for a resilient payment system, market inclusivity, and efficient cross-border transactions. Legislative groundwork for the e-krona's introduction is deemed imperative, with Riksbank poised to propose necessary legislation to the Riksdag.
Initiatives to enhance the cash supply include the establishment of new cash collection and deposit facilities. Additionally, modernisation efforts for the central bank's payment system, RIX, are underway, with considerations for increased market competition and improved cross-border payments. The bank’s recently released Payments Report 2024, delves into the developments within the payments market, providing analysis and insights.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now