Cashless Sweden is something both visitors and others have experienced. However, a shift is now underway. The Swedish government has presented a legislative proposal aimed at ensuring that the cash system remains in place.
In Sweden today, it is difficult to pay with cash, at least in the larger cities. According to the Riksbank’s (Swedish Central Bank) latest payments report, only 5 per cent of Swedes used cash for their most recent purchase. This is significantly lower than in the rest of the EU.
For many years, Kontantupproret, an organisation consisting of various interest groups and popular movements representing, among others, pensioners, people with disabilities, socially vulnerable individuals, and small business owners, has advocated for the continued use of cash in Sweden.
Initially, from 2015 and for some years thereafter, it was very difficult to gain support for the issue of cash. Sweden was said to lead the way in digital development, and only some backward-looking, nostalgic people wanted to keep cash.
Over time, both politicians and the media realised that there were indeed groups that were significantly disadvantaged when cash could not be used. This included many elderly people, individuals with disabilities, women exposed to violence who did not want to leave digital traces, and people from other countries who did not—and still do not—have access to bank accounts.
These voices gradually began to be heard in the public sphere. Their vulnerability became even more evident during the pandemic, when the demand for digital payments increased sharply.
The third step came when Russia invaded Ukraine in 2022. Suddenly, the political system realised that without cash, society was vulnerable. For cash to remain a viable means of payment in a crisis or wartime situation, the infrastructure must function even under normal conditions.
It was time for the ocean liner to begin changing course.
In Sweden, the process of enacting legislation is quite lengthy. First, a decision must be made to appoint an inquiry, and a responsible investigator must be selected. An inquiry worked throughout 2024 and presented several proposals on how the cash system could be preserved and strengthened.
One proposal was that grocery stores and pharmacies should be required to accept cash. Additionally, the investigator proposed a law stating that public services must always accept cash, and that banks should be required to provide businesses with functioning deposit and cash-handling services—something they currently do not offer in Sweden.
When the government recently presented its final legislative proposal, some parts of the inquiry were not included, which led to criticism from Kontantupproret, but the requirement for grocery stores and pharmacies remained.
The government’s proposal will now be considered by Parliament and, unless something extraordinary occurs, it will be approved and come into force on 1 July.
This means that Sweden will, for the first time, legislate that cash must be accepted. An equally important effect is that the political system is acknowledging that the cash system has intrinsic value and is important to preserve. This has not been the message previously.
From Kontantupproret’s perspective, this is seen as an important step forward, even though there had been hopes for stronger and more comprehensive legislation. The organisation will continue to work, advocating for more Swedes to use cash and for more shops and service points to accept it.
With the new law, momentum has shifted in our favour, and we can point to the fact that the political system will not allow the cash infrastructure to become too fragile.
For Sweden and for our security, cash must remain a functioning method of payment.
Sweden has finally changed course – cash is here to stay.
