In Sweden, things have gone so far that cash has become an unusual means of payment. More and more places where you need to pay no longer accept cash and want you to pay with cards. This applies everywhere, not just in the private sector but also in the public sector.
Why has cash become so unusual?
It's expensive for banks and companies to handle cash and ensure the security of cash payments. Banks are among those driving digital payments the most. Technology has developed, and today it's easy to tap to pay with your card or with your mobile phone that e.g. has Google or Apple Pay installed, and all stores and shops accept cards as a means of payment.
E-identification required
E-identification with BankID is the most used standard for approving payments online in Sweden. People without a functioning BankID are handicapped in daily life. 8.5 million people use BankID in Sweden today, but around 10% of the adult population, mainly the elderly, lack BankID. Since BankID is a commercial product from banks, the government is now investigating the creation of a state-run e-identification [1]
Are there dangers with the cashless society?
As everyone, including the elderly and those with limited digital skills, are forced to pay digitally, criminal activities such as phishing, hacking, and attempts to access BankID have become more common. The problems with the cashless system and its potential to be discriminatory are highlighted in a motion by Torsten Elofsson (KD).
Other risks
If the internet stops working for some reason, it will be difficult to pay for food, medicine, and other necessities [2]. There is a great danger that all payments in society would stop functioning if there are disruptions or outages to the internet.
Although there are great benefits to convenience and it's safer in many cases to skip cash handling, there are also risks, such as the strong dependence on e-identification and the requirement for digital communication to function flawlessly and securely.
