Why Sweden is abandoning its cashless society

Why Sweden is abandoning its cashless society Sweden was predicted to become entirely cashless by 2030. As the country developed its own mobile payment system, called Swish, banks slowly stopped handling cash, and tills disappeared from shops. With cash circulation the lowest as a share of GDP in the world, Swedish progress was lauded, and observers wondered how it had forged so far ahead of the rest of Europe so quickly. It all changed when Russia launched its invasion of Ukraine. Realising that reliance on an electronic payment system left Sweden vulnerable to blackouts or sabotage, the Riksbank – Sweden's central bank – urged civilians to keep 1,000 Swedish kronor (£80) per adult at home. The government issued a brochure entitled "If Crisis or War Comes" to every household, advising Swedes to use cash regularly to "strengthen preparedness". Erik Thedeen, the Riksbank governor, told The Telegraph that Sweden takes the threat of Russian hybrid attacks seriously. "We should do whatever it takes to safeguard Sweden in various aspects, both military and civil. It's very hard for anyone to be against that, given where we are in those security situations. I think the pushback has been very limited," he said. In July, the bank announced that essential shops such as grocers and pharmacies with staffed checkouts had to accept physical cash. While some Swedes welcomed the return of cash to reduce barriers for the elderly, the majority say they will not be changing their digital habits. According to data from the Riksbank, only 5 per cent of shoppers said they had paid cash for their last in-store purchase in 2025, compared with 10 per cent in 2023 and 40 per cent 15 years ago. This fits the Nordic model. Only 2 per cent of Norwegians and 8 per cent of Danes reported using cash for their most recent in-store purchase, a Riksbank survey from the end of last year found. In the euro area, cash is still the most common method of payment in shops. "We don't handle cash but now the law says we should, annoyingly," Stefan Blomvurst, a Spanish deli shop assistant, told The Telegraph. "I understand you would need cash if you go to the pharmacy or big supermarket, but we are a speciality store so I don't think we should have to accept cash. "It's a lot to handle and it's also unsafe. I just feel like it's silly and outdated. I think maybe in a few weeks we'll have to get a cash register in. Nobody's going to use it." The majority of the deli's customers pay by card, Mr Blomvurst, 44, says. "Maybe a few people have been annoyed that we don't accept cash, but now those are the same people that are going to come back and make sure we take cash now." He cannot remember the last time he used cash and feels no urgency to do so despite the Russian threat. "But I'm also quite naive, to be honest," he admits. "I don't even have a card. I lost it. Apple Pay is all I have." Meanwhile, Mr Thedeen was able to practise what he preached during a trip to the supermarket recently, he said. The bank chief explained: "The cashier said: 'We can't take any cards because the system has broken down, but we could accept cash.' "I was the only one standing in the line after that message. But I actually had cash. I could pay for my food and go home. It is actually good sometimes for resilience reasons, and I do use it sometimes, but not very often." Inspiration from Ukraine The country takes inspiration from Ukraine, which rapidly adapted to a new digital system under war conditions. Statistics from the National Bank of Ukraine show that nine out of 10 transactions are cashless, raising the question of whether a return to cash is the answer. "The Ukraine example is interesting," says Mr Thedeen. "You first saw people withdrawing more cash, then it became a little impractical so people started to trust the electronic system, although they were in war." In a country so digitalised, where parking tickets are paid for with apps and "no cash" signs are pasted in shop windows, it will take a lot more for Mr Thedeen to convince Swedes that cash is truly king. "I give it to my kids as a weekly allowance, but I don't use cash ever," says Anna Chotigasatien, a 41-year-old doctor. "I think businesses will be frustrated by the change because I think the risk of robbery and the risk of things going wrong currently is much less." However, she says that with the rise of AI and uncertainty surrounding the digital age, there could be negative repercussions from leaving physical currency behind. "Sweden is the kind of country that always wants to be developed when something new comes, like we were quite early with iPads in school," she says. "Now they have seen that's actually not very good, that kids can't write and use, like, scissors because they don't use their hands. We have tried to be a little bit too developed." Nella Lennartsson, a 21-year-old bartender, is no stranger to cash. "We have many old people from the old people's home next door. Everyone uses cash," she says. Concerns over excluding the elderly, who tend to rely more on cash, were brought into debates during the country's general elections last month, with the hard-Right Sweden Democrats calling for more merchants and banks to accept cash as a means of payment and declaring: "We oppose a cashless society." According to the Riksbank, almost half of respondents in a survey from September 2025 considered the decreasing use of cash in Sweden as a "somewhat" or "very negative" development. People outside big cities and over the age of 65 are more likely to be negative about the decline in cash use. The proportion is significantly higher than in 2022, when it was at 36 per cent. This is probably because of an increase in crisis awareness following the outbreak of the Ukraine war. "Cash is king," one elderly man tells The Telegraph. "When something is based on electronics, it will break sooner or later."