Swedish Riksbank wants to strengthen the resilience of the national payment system, developing solutions that enable offline payments with cards, amidst the global geopolitical turmoil.
As geopolitical uncertainty grows, the oldest central bank in the world – Sveriges Riksbank – is working on a contingency plan, aiming to protect the national financial system in case of any adverse outcomes.
The bank believes that offline payments, e.g. paying by card without an internet connection, need to be improved. At present, it’s hard to pay offline in Sweden, and contactless mobile payments don’t work at all without internet. These contactless payments also lead to more people forgetting their PINs and losing track of their cards.
Governor Erik Thedéen stated that, due to the worsening security situation in Sweden and its neighboring regions, both public and private sectors must urgently work together to create a payments market that can handle any disruptions caused by internet outages, cyberattacks, or other emergencies. If the online payment systems fail or are unavailable, offline payments provide a backup option, allowing people to continue making purchases or accessing essential services. Therefore, the Riksbank is focusing on improving the ability to make offline card payments to enhance resilience. The relevant stakeholders have been brought together so that a solution is in place by 1 July 2026.
Thedéen also urged the public to improve their own payment preparedness by keeping both physical cards and cash available and using these payment methods regularly. Cash is still an important payment method not only for emergencies but also on a daily basis for those who cannot or choose not to use digital services. The Riksbank believes that legislation is needed to keep cash in use and supports the Cash Inquiry’s proposals presented last year.
Governor Erik Thedéen stated that to protect cash as a payment method, the Swedish government should make it mandatory to accept cash for essential goods and implement measures to safeguard the entire cash process. At the same time, he also suggested considering a maximum limit for cash purchases to reduce criminal activity.
In addition, the Riksbank emphasizes the need for more people to access payment accounts, as it’s essential for receiving wages and paying bills. Financial exclusion affects groups like refugees and visiting researchers. Governor Erik Thedéen stated that while anti-money laundering laws are important, more people should be able to access basic payment accounts to fully participate in society.
The Riksbank is also focused on expanding instant payment services. While Swish payments have always been immediate, banks can now offer more services, such as instant payments for purchases currently made via online bank transfers. A survey shows half of small business owners want instant payments. Governor Erik Thedéen stated that instant payments reduce transaction costs, helping businesses manage cash flow and benefiting financially vulnerable groups. He urged banks to offer more instant payment services, like in other Nordic countries.
The final part of the bank’s current focus is cross-border payments efficiency. As European countries are getting closer in their economic and security ties and the global trade patterns are shifting, Riksbank is working with other central banks and private banks to enable instant cross-border payments through the TIPS service, starting in October. At the same time, the institution stresses the need to strengthen market control systems to prevent financial crime, especially with the increase in instant payments, both within Sweden and internationally.
