Carding Forum
Professional
- Messages
- 2,788
- Reaction score
- 1,322
- Points
- 113
The Nordic countries are leading among the economically developed countries of the world in terms of the transition to cashless payments, demonstrating the example that the low cost and ease of use of cards and smartphones for payments outweigh the possible risk of fraud and incomplete coverage of certain categories of the population.
Thanks to the widespread use of computers, even among the elderly, trust in the state, the growth of big business and a very small share of the shadow economy, the population of Sweden and neighboring countries is increasingly using plastic cards for payment. At the same time, the number of various mobile applications for financial institutions is also growing rapidly.
“We are moving fast towards a cashless society,” Jan Digrans, director of Finance Norway, which represents banks and other financial institutions , told Reuters.
Sweden ranks first in the European Union in terms of the number of card payments per inhabitant per year - 230 transactions. This is followed by Denmark, Finland and the UK with 167 transactions, Germany (39) and Italy (28), according to the European Central Bank.
Among the countries outside the EU, the leaders in the number of non-cash payments are Norway and Iceland.
According to the Norwegian central bank, the main advantage of non-cash transactions is their lower cost. So, last month, each transaction using banknotes and coins cost 7.1 kroons ($ 0.92), while the processing of a card transaction is estimated at 4.1 kroons.
Users, first of all, note the convenience of cashless payments. Although some categories of the population, for example, the elderly and the disabled, do not have access to innovative technologies and credit cards, or simply prefer to use banknotes and coins.
Swedes often make the smallest daily purchases, including chewing gum and a drink at a bar, using a payment card or the Swish smartphone app developed by Swedish banks. In the Stockholm metro, it is impossible to pay for a ticket in cash. What's more, many street vendors have also started accepting electronic payments and are reporting sales growth as a result.
In Denmark, MobilePay, the name of an app launched by Danske Bank to make payments with a smartphone, was voted the best new word of 2021 on state radio. Currently, 1.8 million of the country's population of 5.6 million use the MobilePay service.
However, many experts point out that the cashless society trend may not affect some unbanked users, such as the elderly. In addition, one should not forget about the loss of anonymity in the event of the transition from cash to electronic payments, as well as the emerging risks of cyber fraud.
According to the Swedish Ministry of Justice, e-fraud in the country has doubled over the past decade, with 140,000 attacks in 2020. To limit the risk of exposure to cybercriminal attacks, Danske Bank advises MobilePay users to keep their phones locked when not in use and to secure them just like a credit card or cash.
In Norway, MasterCard is experimenting with biometric user identification developed by Zwipe and embedded in credit cards.
Of course, cash will be popular in European countries for a long time to come. The Swedish central bank plans to introduce new banknotes and coins this year. Nevertheless, according to the regulator's forecasts, the volume of cash settlements will decrease by 20-50% by 2025 compared to 2018.
Thanks to the widespread use of computers, even among the elderly, trust in the state, the growth of big business and a very small share of the shadow economy, the population of Sweden and neighboring countries is increasingly using plastic cards for payment. At the same time, the number of various mobile applications for financial institutions is also growing rapidly.
“We are moving fast towards a cashless society,” Jan Digrans, director of Finance Norway, which represents banks and other financial institutions , told Reuters.
Sweden ranks first in the European Union in terms of the number of card payments per inhabitant per year - 230 transactions. This is followed by Denmark, Finland and the UK with 167 transactions, Germany (39) and Italy (28), according to the European Central Bank.
Among the countries outside the EU, the leaders in the number of non-cash payments are Norway and Iceland.
According to the Norwegian central bank, the main advantage of non-cash transactions is their lower cost. So, last month, each transaction using banknotes and coins cost 7.1 kroons ($ 0.92), while the processing of a card transaction is estimated at 4.1 kroons.
Users, first of all, note the convenience of cashless payments. Although some categories of the population, for example, the elderly and the disabled, do not have access to innovative technologies and credit cards, or simply prefer to use banknotes and coins.
Swedes often make the smallest daily purchases, including chewing gum and a drink at a bar, using a payment card or the Swish smartphone app developed by Swedish banks. In the Stockholm metro, it is impossible to pay for a ticket in cash. What's more, many street vendors have also started accepting electronic payments and are reporting sales growth as a result.
In Denmark, MobilePay, the name of an app launched by Danske Bank to make payments with a smartphone, was voted the best new word of 2021 on state radio. Currently, 1.8 million of the country's population of 5.6 million use the MobilePay service.
However, many experts point out that the cashless society trend may not affect some unbanked users, such as the elderly. In addition, one should not forget about the loss of anonymity in the event of the transition from cash to electronic payments, as well as the emerging risks of cyber fraud.
According to the Swedish Ministry of Justice, e-fraud in the country has doubled over the past decade, with 140,000 attacks in 2020. To limit the risk of exposure to cybercriminal attacks, Danske Bank advises MobilePay users to keep their phones locked when not in use and to secure them just like a credit card or cash.
In Norway, MasterCard is experimenting with biometric user identification developed by Zwipe and embedded in credit cards.
Of course, cash will be popular in European countries for a long time to come. The Swedish central bank plans to introduce new banknotes and coins this year. Nevertheless, according to the regulator's forecasts, the volume of cash settlements will decrease by 20-50% by 2025 compared to 2018.
