Linda Madigan - Manager, Sweden - Bord Bia, Irish Food Board
More and more cafes, restaurants and shops in Sweden are going cash free and big retailers following suit. Most people rarely carry cash, even children use card payments. A big reason for this move is Sweden’s advanced digital technologies, strong broadband coverage even in remote areas and Swedes trust in new technologies and institutions.
Eighty percent of all transactions in Sweden are made by debit or credit card, online or using Sweden’s most popular mobile app Swish. A pilot scheme is currently under way in Sweden’s central bank testing out a new state issued digital currency, the e-krona. It is hoped this will be less vulnerable to hacking attacks or power failure.
The Swedish equivalent of the Big Issue sold by homeless people in Stockholm have introduced innovative payment solution where the sellers have a badge with a QR code. Buyers can scan the code with their phone and make a digital payment and the seller collects payment from the central office for the magazine. Sweden is said to benefit from lower crime and higher tax revenues as a direct result.
Sweden may be at the forefront of the cashless trend, but it seems the country is still not quite ready for a completely cashless future. It is recognised there are challenges for the vulnerable in society such as retirees and newly arrived refugees who may struggle with digital transactions and be left behind.
In keeping with this trend, online is an increasingly important channel for all the main retailers, ICA, Coop, and Axfood. ICA recently signed a deal with OCADO, Axfood is rolling out an e-commerce offer while Coop has invested €9.7m in a new online platform. Purchases of food online have seen an increase of 19 percent during first quarter of 2019. This on first sight seems impressive but it is in actual fact only 2 percent of total. Although it is expected to grow to 10 percent by 2025 because of the expectation of traditional food retailers feeling pressure from online suppliers such as Mat Hem and low price players like Lidl has led to a sense of urgency to have an all channel presence.
This trend of cash less society can be seen in Ireland, only recently Bear Market Coffee, on George Street in Dublin is possibly the first cashless coffee shop in Ireland. They partnered with a telecommunications and data connectivity provider to include a pre-order app and WiFi. Irish millennials could likely lead the charge in its adoption in Ireland.