Alternative payment solutions are changing the face of Cards and Payments Industry of Sweden and the following sections detail the available alternate payment options that are widely accepted across the nation.
Contactless and NFC technology
Contactless payments change the demographics of payment cards by simplifying the process to just tap and pay. Near-Field Communication technology available in Sweden is as follows
- ICA to Go, a loyalty program introduced by the retail chain of Sweden ICS Group offers free lunches to customers for their NFC-based payments from smartphones or stickers.
- Targeting around 100,000 students in multiple universities, the payment processor of Sweden, Payex has partnered with Accumulate, a mobile solutions provider to install a mobile payment service based on the NFC technology.
- International payment solutions provider PayPal in collaboration with the retailers of Sweden implemented an in-store payment application that works on NFC technology to accept the payments from the NFC-enabled stickers and deducted from their PayPal accounts.
- SAS Smart Pass stickers, which act as self-service machines were introduced by Scandinavian Airlines for its EuroBonus Gold frequent fliers use NFC-technology for boarding eliminating the conventional paper-based process.
Smart Card Payments
Smart cards offer payment options in public transport and gyms of Sweden in the form of mobile ticketing (m-ticketing) and m-payments. The m-payment application developed by Microsoft in partnership with Bankvert, a rail operator in Sweden allows people traveling on the rail to by tickets through their windows powered smart cards.
Nordea Bank of Sweden offers similar solutions involving a security token integrated with the smart card to help customers to make their online declarations of tax and purchases by logging into the online banking service of Nordea. These solutions of Nordea Bank are governed by Todos, part of the Gemalto Group.
The shift towards EMV cards
The chip-based EMV cards helped the European markets to successfully fight against the fraudulent transactions. Sweden has recorded almost complete migration towards EMV-based card transactions from the traditional magnetic stripes.
Payments through Mobile
Mobile Payments witnessed growth during the review period, and solutions like WyWallet, a wallet service jointly introduced by mobile operators Telia, Tele2, Telenor and 3 Sweden to offer m-payments for e-commerce purchases, prepaid recharge and NFC payments at outlets encouraged the public.
Quick Response (QR) code-based payments in Sweden helps the customers to pay from their credit cards using the smartphones at retail outlets and online merchants increasing the process speed. Making use of this solution, Seamless, a payment solution provider in Sweden has introduced SEQR, a mobile-based solution allowing payments through QR scan. The initial pilot projects were this QR code payments were implemented by Seamless in collaboration with Max and Axfoods.
The increasing use of mobile payments and the acceptance of other payment technologies increased the trust of consumers towards electronic payments and improved the overall profits of banking firms in Sweden.