Sweden, the land of the midnight sun! The kaleidoscopic country gave us the pop legends ABBA, IKEA, Spotify and Volvo. Oh, and let’s not forget about Vikings! Sweden has always been a fun Nordic country for foreigners. The land where pop music lived its legendary years, some of the best design work originated from and last but not least, where the original Swedish meatball recipe was created! It might be shocking to some that Sweden is one of the largest countries in the European Union, with a citizen count of only 10 million.
The weather changes from one end of the daylight spectrum to the other in a year since the country is on northerly latitude, and in addition to this unusual but alluring climate, Swedish winter gives us the incredible Aurora Borealis, also known as the Northern lights, which belongs to the colourful dreams of millions from all over the world.
In addition to the strikingly gorgeous Northern Lights, Sweden is enchanting during Midsommar, when the summer solstice is celebrated everywhere around the country. Unlike the movie that traumatised the entire world, Midsommar is a delightful summer celebration with flower picking, dancing, and singing to bless the upcoming season. Since the winters can get extremely cold, dark and long, Swedish people know how to appreciate the good weather!
While it is known for its frigid weather, dynamic pop music, artistic design work, and good food, Sweden has much more to offer. It is the sixteenth-richest country in the world in terms of GDP (Gross-Domestic-Product) per population unit, and Swedish citizens experience a high standard of living.
Moreover, having the world’s eleventh highest per capita income, Sweden ranks highest in health, education, income equality, gender equality, wealth, protection of civil rights, and economic competitiveness. When there are excellent living conditions, there is also time for art. Sweden has always been one of the first names that come to mind when it is about exemplary design in any field.
Sweden has provided outstanding examples from graphic design to industrial design and furniture design. Such a great country for slow living, making art and being a woman! Wouldn’t we all want the same conditions? It is not surprising that this dreamland is on the radar of everyone looking for a place to create a better life for themselves.
At last, the economic position of Sweden can be defined as increasingly science-centred, mainly provided by the export, manufacturing sector and a large public service sector by international standards. Unlike other Western countries, a significant portion of Sweden’s industry has been controlled privately.
Furthermore, as a part of the Schengen Area and the EU single market, Sweden does its international trading mostly with Denmark, Finland, Norway, Germany, the United States, and the United Kingdom. Hence, most online money transfers to Sweden come from these high-developed countries.
The recent digital revolution in Sweden has attracted a lot of global payment platforms to the country. Also local financial giants such as Nordea and ICA Banken have adapted their traditional banking infrastructure.
After covid-19 a lot of Swedish people decided to move abroad to more warm climates. Another reason is the global immigration problem, Sweden couldn’t solve the illegal immigrant problem. Primary locations are Thailand, Bangkok and South of Spain. This immigration also created the need for more efficient international transfers for Swedish people.
Choosing Payment Methods in Sweden
Although most are equitable, educated and modernist, Swedish people are highly conservative regarding traditional financial assets. In September 2003, people chose to keep their fiat currency, the Swedish krona (SEK), because of the referendum. This approach can also be seen in payment options in Sweden. As written in the latest JPMorgan report, the major credit/debit cards like Visa and Mastercard are still the most popular payment options online, taking up to 38% of the total sales pie.
Undoubtedly, one of the most known mobile payment solutions is Swish, which has become the most preferred online payment method in recent years. The Swish app ranks as the most preferred payment method and practice in Sweden among young adults who are used to technology more and adults aged between 30-40.
What are the Different Types of Payment Methods in Sweden?
With all technological innovations Sweden is now one of the most tech-forward countries. Many digital payment methods targeted Sweden. The biggest operators such as Jeton are available and operate smoothly due to big investment made in banking network infrastructure in Sweden.
In order to inform our readers and give a complete perspective regarding the payment practices in Sweden, we have listed the most convenient and used payment options below:
Credit/Debit Cards in Sweden
As we have mentioned before, credit and debit cards are still the most popular options amongst the Swedish. Debit cards are more preferred for daily spending. And they are available mostly in urban areas and tourist destinations. Major credit cards are accepted in any field you might think of, from taxis, hotels, banks, stores and restaurants. Swedish people also prefer to use credit cards on bigger expenses such as holidays or even buying cars.
With some restrictions on American Express, if you are one of the people who like using their credit and debit cards for everything, Sweden welcomes you with open arms. We guarantee you there is unlikely that you will struggle with your payments in Sweden if you use one of the major credit cards, including Visa, MasterCard and Maestro. If you are planning to travel to Sweden we recommend you inform your bank about your location change. This prevents your card from being flagged for suspicious transactions or activities and your credit card doesn’t get blocked by your bank. Also if your bank offers different currency options try to switch to local currency so you don’t need to pay extra exchange fees while you are using a credit card in Sweden.
Cash in Sweden
Cash is used less and less every day in Sweden. Since Swedish people are practical, they often prefer paying with a card. Even though some shops do not accept cash anymore, especially in Stockholm, cash can still be used for small payments and is accomplished mainly by the elderly population of the country. Also the cash is still in use in small local businesses.
Swedes absolutely love technology and they take all the advantages of the global financial developments. In the near future, the entire country might go cash-free. They have already integrated all necessary infrastructure for digital accounts and transactions across the country as well as on a global scale. The Swedish government has initiated important studies for regulatory requirements at national level. In recent years the government has taken all the necessary measures to facilitate the adoption of digital banking in every corner of Sweden.
If you are a cash user, we can advise you to start looking for other payment options before going to Sweden to ensure you don’t encounter any problems while paying for your coffee to warm you up in the brutal Swedish winter. Most cash users are complaining about not understanding how to use technological devices or applications when it comes to payments. The Swedish government and financial institutions put extra effort to get the maximum from user experience. Right now all apps or mobile payment methods are designed to appeal to people of all ages and cultures. In other words you don’t need to be a generation alpha o gen z to use these life changing methods.
Digital Wallets in Sweden
Digital wallet usage in Sweden is becoming increasingly popular, with new digital wallets and payment options appearing on the market. As we have mentioned before, Sweden is almost a cash-free country, and Swedish people embrace new payment methods readily as they bring convenience and security. With digital wallets and various other online payment options, making transactions is becoming more hassle-free daily. Now it is possible to use the Jeton App for every type of transaction in Sweden.
The most significant advantage of owning a digital wallet is being independent of location and time. Creating a digital wallet account online will take up to 10 mins with no gathering documentation or waiting, whereas this time duration is more than a couple of days in the best condition for a brick-and-mortar bank. Thus, like worldwide, most Swedes are looking for the best digital wallet feature in their lands and compared them with each other to choose the one meeting their standards. Another important aspect is the security of digital wallets. Swedish people value the security of their accounts. Both government and financial entities have taken necessary measures.
Most of the available digital wallets in Sweden offer great security measures such as Two-Factors Authentication (2FA), iris scanning, face recognition and finger print scanning. As you can see there is a great adaptation in terms of security and local regulations, research shows that Swedes feel more secure using digital wallets compared to other nations in Europe.
Cryptocurrency in Sweden
Cryptocurrencies are the most preferable methods for cross border transactions. Also they are very much integrated into our daily life. Cryptocurrency usage is becoming increasingly popular all around the world every year, and Sweden is not an exception. Even the Swedish government hopped on the trend and started testing “e-krona”, the digital version of Sweden’s local currency. Swedish people are very open minded and easy to adapt especially to technological advancements. This is another reason why cryptocurrencies are becoming more popular day by day in Sweden.
The cryptocurrency market in Sweden is thriving with no present legal regulations and multiple popular cryptocurrency exchange platforms. Cryptocurrencies are considered tradable assets rather than currencies and, if kept as stocks instead of trading, can be subject to income tax of 32%. In Sweden cryptocurrency is valued as much as local currency. There is already a strict local regulation on taxes related to crypto currency.
However it might be complicated to declare your crypto taxes in this country. In Sweden taxes are handled by the local tax authority (Skatteverket). You can work with an accountant or you can digitally apply for a tax extension via Skatteverket’s online portal.
In Sweden, capital gains tax on cryptocurrency trading profits is 30%. 70% of losses are deductible from your gains. Furthermore, you’ll have to pay 30% interest income tax over your staking rewards and pay your regular income tax rate over cryptocurrency mining rewards.
We can say the cryptocurrency activity may be subject to three different types of taxes in Sweden: Capital Gains Tax, Income tax, and Interest Income Tax. Please check how they work and when they are relevant to you if you don’t want to face fines in the future.
Jeton App in Sweden
Hej Sverige!
Our game-changer application, Jeton, has been in the Swedish market for a while, and we have received great feedback from our beloved users here. Thanks to the elevated experience of our inner circle professionalised in Scandinavian countries, you will experience our digital banking services to the fullest in Sweden. Jeton app has a very unique design just like world wide famous Scandinavian design that is characterised by simplicity, minimalism and functionality. Not just with the looks but also with seamless operations, Jeton has all the necessary features to meet all your banking needs in Sweden. Jeton not only offers fast transactions but also high security measures for your peace of mind.
Jeton App successfully operates in more than 100 countries and offers online money transfers, instant transactions, scheduled payments, and sensible exchange rates among over 50 fiat currencies and cryptocurrencies (Bitcoin, Litecoin, Ethereum, Bitcoin Cash, Dogecoin, Tether).
To meet our innovative services, privileges, Visa-based Jeton Card, and user-oriented approach, visit jeton.com today. It is very easy to create a Jeton account for both individuals and businesses. Once you create a Jeton account, we assure you will have an extraordinary online experience beyond your expectations!
