Swedish consumers are adopting digital wallets at an ever-increasing pace, according to a new report from Visa Consulting & Analytics (VCA). The increase is evidence of a broader trend in the Nordics – cards are still important, but consumers’ choice of digital payment methods is growing. All according to the report “Fragmented but thriving: The Nordic payments landscape 2024”(1)
The report, in which 2000 consumers in The Nordic countries surveyed and combined with Visa's transaction data, reveals some important trends:
- The use of digital wallets is expected to increase in Sweden, with a forecasted growth of 141% in transaction value between 2023 and 2027. This increase occurs at the same time as traditional card payments lose momentum, which clearly indicates a changing consumer behavior. The rapid transition to digital wallets and account-to-account (A2A) payments is creating both new opportunities and challenges for the financial sector.
- Digital wallets are now used by 87% of Nordic consumers. In Sweden digital wallets account for 38% of in-store transactions, and this figure is expected to rise to $88.9 billion by 2027. While preferences for specific wallets vary by region, card-linked digital wallets are experiencing the fastest growth.
- In Sweden, 281% of consumers use Google Pay, 231% of consumers use uses Apple Pay and 13% uses PayPal.
- Account-to-account (A2A) payments are gaining ground, especially for online purchases. While the Nordics are ahead of many European countries in A2A usage, they still lag behind leading countries such as the Netherlands and Poland. In Sweden, 31% of consumers made an A2A payment in the last month.
- Established banks still have strong customer relationships, but a growing number of consumers are using FinTech challengers and other financial institutions for online payments. The trend is most pronounced among younger, digitally active customers. In Sweden, 91% of consumers use a secondary financial institution for online payments, an increase of 50% from 2023.
- Consumer priorities regarding card features are evolving. While security remains paramount (as stated by 26% of the Swedes), convenience (19%) and knowing how payments are processed (16%) are also important factors. There is also a growing interest in features such as expense tracking and rewards programs, which create opportunities for differentiation.
– Sweden is at the forefront of the digital Payment transformation in the Nordics. The rapid adoption of digital wallets and other innovative payment methods is also highlighting the need for seamless and secure digital experiences. An area where Visa is committed to partnering with financial institutions and FinTech companies to empower consumers and businesses in this dynamic environment., says Fredrik Lindquist, country manager at Visa.
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