Sweden and Norway rethink cashless society plan over Russia security fears

Sweden and Norway are backpedaling on plans for cashless societies over fears that fully digital payment systems would leave them vulnerable to Russian security threats, and concern for those unable to use them.

- Miranda Bryant

A combination of good high-speed internet coverage, high digital literacy rates, large rural populations and rapidly growing fintech industries had put the Nordic neighbours on a fast track to a future without cash.

Swish, a mobile payment system that six banks launched in 2012, is ubiquitous in Sweden, from market stalls to coffee shops and clothes stores. The Norwegian equivalent, Vipps, which merged with Danish MobilePay in 2022 to form Vipps MobilePay, is also very popular. Last month, it also launched in Sweden.

The former deputy governor of Sweden's central bank predicted in 2018 that Sweden would probably be cashless by 2025. But Russia's invasion of Ukraine in 2022 and a rise in cross-border hybrid warfare and cyber-attacks blamed on pro-Russia groups have prompted a rethink.