Sweden Country Report

Key Topics
Demographics and the economy
Payments environment
Cards market
Mobile payments
Profit pool
The networks
Key retail banks and issuers
Acquiring and processing
Online acquiring
Regulatory and other cards market information

Appendices: Card Payments Data

Appendix I: Demographics and the economy

• Demographic and economic indicators
• Ownership of key consumer devices
• Internet usage by population

Appendix II: Payments environment

• Access points
• Account penetration
• Consumer payment trends
• B2C e-commerce payment methods

Appendix III: Cards market

• Total cards payment metrics
• Contactless cards metrics
• Credit card numbers by type
• Total credit cards metrics
• Credit cards profitability indicators
• Debit cards numbers
• Debit cards metrics

Appendix IV: Mobile payments

• Mobile proximity payment metrics
• Mobile P2P payments

Appendix V: Profit pool

• Profit pool

Appendix VI: The card networks

• Networks' credit card market shares
• Networks' credit card numbers
• Networks' credit card billed volume
• Networks' number of credit card transactions
• Networks' average credit card transaction value
• Credit card interchange fees by network
• Networks' debit card market shares
• Networks' debit card numbers
• Networks' debit card billed volume
• Networks' number of debit card transactions
• Networks' average debit card transaction value
• Debit card interchange fees by network

Appendix VII: Key retail banks and issuers

• Key credit card issuers market shares by credit card numbers
• Key issuers market shares in credit card outstandings
• Key debit card issuers market shares by debit card numbers

Appendix VIII: Acquirers and processing

• Merchant acquirer credit card market share
• Credit card merchant service charges
• Merchant acquirer debit card market share
• Debit card merchant service charges
• Credit card issuer/issuing processor relationships
• Credit card acquirer/acquiring processor relationships
• Credit card issuing processor market shares by card numbers
• Credit card acquiring processor market shares by the number of POS transactions

Appendix IX: Online acquiring

• Online merchant acquirer market share

Demographics and Economy:
The country has an ageing population and invests more of its gross domestic product in caring for its elderly than any other in the world. In 2018, the number of citizens aged 65 and older stood at 19.8%. This demographic shift has changed investment and savings preferences.

Payments Environment:
Sweden's payments ecosystem is currently evolving at a rapid pace. Swedish households are using electronic means of payment such as bank cards and mobile payments at an ever-increasing rate, while the use of cash is declining.

Cards market:
The payment cards market is well established in Sweden with strong consumer penetration and merchant acceptance. Consumers made an individual average of 430 card purchases in 2018.

Mobile Payments:
Sweden is one of the few Western economies where mobile payments have become widespread. This is largely due to the runaway success of Swish, which dominates the landscape.

Profit Pool:
Credit cards are not a key revenue generator for Swedish banks. Nonetheless, Verisk's profit pool analysis shows stable profitability over the years. Profit per card was estimated at $39 in 2018, a small increase compared to $37 in 2012.

Card Networks:
Mastercard is the dominant credit card network, with an estimated three- quarters market share of network-branded cards in issue at the end of 2018. The debit cards market was traditionally dominated by Visa but Mastercard has turned that on its head by securing agreements with three major banks.

Key Retail Banks and Issuers:
Nordea, SEB, Swedbank and Handelsbanken dominate the Swedish banking system and accounted for 72% of banking assets in 2018. However, in terms of branch networks, Handelsbanken is the leader with 435 branches, followed by Swedbank with 248 branches.

Acquiring and Processing:
Swedbank Babs is the largest acquirer in the Swedish market, acquiring around 60% of card transactions. NETS, Handelsbanken and Bambora are its main competitors.

Online Acquiring:
Cards are the leading online payment method in Sweden but face competition from alternative payment methods. E-invoices are the preferred alternative to cards with other options such as bank transfers and Swish also popular.

Regulatory and Markets Information:
Banking regulations have advanced noticeably since the 2008 financial crisis. The law permits foreigners to invest in Swedish bonds and krona-denominated money market instruments, as well as to hold interest-bearing krona deposits in Swedish banks.