Sweden's payment rails set a global standard for modernisation, making its economy one of the most technologically advanced in the world. People are utilising less cash and more mobile and real-time payment systems, which suggests that the country is open to new ideas. Swish payments and Bankgirot Sweden have revolutionised the way consumers and businesses transmit money, which is why this transformation is happening. But this accomplishment also brings up new issues with the security of digital infrastructure, making sure everyone has access to it, and making it stronger.

Sweden's central bank's infrastructure and payment rails

One of the most advanced digital networks in the world supports Sweden's payment system. Sveriges Riksbank, the central bank, needs to make sure that transactions are safe and work. It runs the RIX payment system, which is how banks send and get money.

There are two key pieces to the RIX system. RIX-RTGS takes care of real-time gross settlements of large amounts between banks to keep high-value transfers stable. In the meantime, RIX-INST makes it easier for people in Sweden to make smaller, real-time payments, which helps them settle transactions right away in central bank currency. Because of this contrast, Sweden is exceptionally good at handling both massive financial settlements and fast transfers at the consumer level.

The establishment of RIX-INST is very crucial for the overall ecosystem since it makes it less dependent on traditional clearance processes and makes it easier for instant transfers to happen in Sweden.

The most common way to pay using a phone is via Swish

In Sweden, Swish is perhaps the most popular way to pay with a phone. Swish, which six major banks, Bankgirot, and the Riksbank established in 2012, quickly became a part of everyday life. At the moment, it's the most common way to pay online in the country.

As of February 2025, Swish had more than 8 million users, which is almost 86% of Sweden's total population. In 2016, approximately half of Swedes stated they used Swish. By 2022, that number had climbed to 80%, which indicates how popular it was. More than 320,000 establishments now accept Swish. It was first made for person-to-person payments, but it quickly developed to incorporate business payments as well. It's fascinating that more than half of all Swish payments now go to corporations instead of people.

How Swish works in Sweden: When you pick the recipient's number in the app, the money is paid right away. A person's mobile phone number is linked to their bank account. It's fantastic for paying at tiny retailers and markets, splitting bills, and sending pocket money because the money goes right away. Businesses normally pay about 2 SEK for each payment and a minor yearly charge; however, private users can use Swish for free.

Bankgirot's BiR system used to handle Swish transactions, but since 2024, RIX-INST has been handling more and more of them. This improves Sweden's real-time payment system even more.

Also read: Namibia’s Payment Rails & How They Work – NamPay, EFT & Digital Wallet Growth

Bankgirot, the principal clearing system in Sweden

Bankgirot Sweden has been a major player in the clearing and settlement business since it debuted in 1959, even before Swish was the norm. A collection of big Swedish banks owns Bankgirot. It operates Sweden's popular Bankgirot clearing system, which is used to move money between accounts, settle bills, and make commercial payments.

Bankgirot gives each receiver a unique Bankgiro number (7–8 digits) that tells the bank where to send the money, no matter what bank the recipient has. Only businesses can receive Bankgiro numbers, but anyone can use them to pay. This approach has been quite helpful for keeping track of structured payments like taxes, salary, and bills from vendors.

Leverantörsbetalningar is a service that enables companies to pay their taxes, employees, and suppliers all at once. E-faktura is another choice that lets you send invoices electronically, which makes reconciliation faster and reduces paperwork. In June 2025, Bankgirot processed 221 million transactions totalling SEK 1,377 billion. This was an 8.1% rise from the same month the year before.

Sweden is moving towards direct bank-to-bank connections and ISO 20022 standards. As a result, Bankgirot's main services will no longer be available after 2026. This is in keeping with what is happening throughout the world to modernise things, and it shows that the government wants to make its fintech environment easier to use.

The Road to a Cashless Society in Sweden

A lot of people say that Sweden is the country that will stop using currency first. Cash accounts for around 10% of GDP in the Eurozone, but only 1% in the US. There are now half as many coins and bills in circulation as there were in 2007. In 2022, only 8% of Swedes indicated they used cash, and by 2025, only 10% of purchases will be made with cash.

Swish mobile payments come in second place behind cards as the most prevalent way to pay. The transformation is because of what customers desire and because banks and policies are taking steps to encourage the use of digital technologies.

The Issues and Risks of a Cashless Economy 

There are good and bad things about an economy that doesn't use currency very often. People can't get money, which is one of the main challenges. Older folks, people who live in rural locations, and people who aren't comfortable using digital technologies may have trouble getting financial services. The Riksbank has indicated several times that it's vital to alter systems so that people who might be left behind can use them.

Cybersecurity is another huge problem. In Sweden, bank card fraud grew by 44% from 2022 to 2023. This made financial fraud the crime that developed the most quickly. Scams that involve social engineering are becoming increasingly widespread, especially when they target older persons.

Another thing to worry about is how robust the system is. Digital things can have problems, including power outages, hacking, and more. In response, the Swedish government has encouraged its citizens to set aside some money for unexpected expenses.

Lastly, Sweden's economy is weak because it relies heavily on private payment systems like Visa/Mastercard and Swish. The Riksbank is currently working on offline options that are sorely required.

Also read: Eswatini’s Payment Rails & How They Work – EFT, Mobile Money & Financial Inclusion

The Future of the Digital Payment System in Sweden

Sweden is putting a lot of effort into making its payment system safer and more up-to-date in the future. The Riksbank is now testing the e-krona, a digital currency from the central bank that would function with cash. The e-krona may be based on an account or a value, and it would always be worth one Swedish krona.

At the same time, RIX-INST is being made bigger so that it can be the main system for quick transfers in Sweden. By the end of 2024, all transactions made using Swish should be moved to RIX-INST. The Riksbank is also looking into new ways to make payments that don't rely as much on international card networks. They are also working to make Sweden's cash infrastructure stronger so that it is always available in an emergency.

These developments indicate how banks and businesses in other nations can successfully upgrade their payment systems. Businesses that seek to make real-time transfers, cross-border payments, and CBDC integration should look to Sweden as an example. Get in touch with a Transfi expert to learn how comparable solutions can work in your area.

Conclusion

The payment system in Sweden is a wonderful and poor example of how quickly things can go digital. For a long time, Bankgirot Sweden has offered reliable clearing services. Now, Swish payments are altering the way consumers and businesses do business with each other. These two elements have made the country ready for the future of digital payments. There are still major concerns of fraud, exclusion, and depending too heavily on digital infrastructure, too. As Sweden progresses towards a society without cash, it will be vital to establish a balance between being strong and being creative. These lessons may be learnt by any country that wishes to establish a payment system that is safe, open, and ready for the future, not only those that apply to the country.

Transfi and other companies can assist businesses and banks make this move securely and profitably by giving them the tools and information they need to establish payment systems that are just as strong and can grow.

FAQs:

1. What is Swish and how does it work in Sweden?

People can send money in real time using Swish by associating their phone number and bank account. More and more customers are using RIX-INST to settle deals right away.

2. What does the Bankgirot in Sweden do?

Bankgirot takes care of big payments, including taxes, bills, and pay cheques. Businesses may easily maintain track of their money with bankgiro numbers.

3. How near is Sweden to not using cash?

Very close—just one out of ten purchases still utilise real money, and cash barely makes up 1% of GDP.

4. What could happen to Sweden if it stops using cash?

Some of the biggest concerns are not being able to get money, increasing fraud, hacking, system breakdowns, and depending on private-sector networks.

5. What will happen to Sweden's digital payments?

The Riksbank is making the e-krona, adding to RIX-INST, and working on ways to pay offline so that everyone can use them and they will last.