Sweden Payments Market Size

Sweden Payments Market Analysis

Sweden is a country of digitally savvy shoppers looking for digital payment methods, and as the country's e-commerce capabilities improve, product choices expand. Sweden's unique preference for payment sets it apart from other European countries. The settings need to be considered, from simply delivering to the pick-up point to enabling the local bank transfer method as part of the payment suit. The country is expected to grow at a CAGR of 10.6% during the forecast period (2022 - 2027).

• Sweden is a stable and relatively predictable market for merchants with digitally confident and English-speaking consumers. Several factors make Sweden an attractive destination for international e-commerce players. First, there is a significant opportunity as the country is wealthy. Second, Sweden's underlying framework supports the growth of e-commerce. The country is one of the finest fixed-line internet infrastructures globally for comprehensiveness and internet accessibility, and e-commerce sites for all ages and socio-demographics.
• International retailers such as Zalando in Germany and Wish in the United States are entering the market. This reduces costs and intensifies competition. The people in the country are considered cautious buyers who spend money when prices and time are right. Also, Sweden's delivery preference is different from many other European countries, and delivery to collection points is by far the most common method.
• According to a survey conducted by J.P. Morgan, Cards are the primary online payment method, accounting for 38% of sales. When it comes to using cards, debit cards are preferred over credit cards. Card penetration remains high in the country, with 1.1 debit cards per person and 0.7 credit cards per person, making it a ubiquitous payment option for merchants.
• In addition, fully digitized systems can be extremely vulnerable to data breaches in the country. Recent attacks on financial institutions and large corporations show how sophisticated and uncontrollable hacking operations are. In addition, in the event of a system failure or natural disaster, consumers will be denied access to their money and will run out of resources.
• The development of the payments market has accelerated due to the significant decline in some of the retail, tourism, entertainment, and restaurant businesses caused by the COVID -19 pandemic. A clear sign of this is that both the number of ATM withdrawals and the value of those withdrawals decreased early in the pandemic and then stabilized at lower levels.