Swedish Central Bank Contemplates Switch to Instant Payments

Fintechist Sweden Instant Payments Riksbank

Slowly but surely, the financial sector is gravitating toward instant payments. Considering how all transfers are digital these days, achieving this goal is a matter of time. The Swedish central bank is the latest to potentially venture in this direction. A public consultation has been opened to determine whether or not the venture is worthwhile.

Sweden is a very interesting country for payments. Cash is almost nonexistent, although people still cling to it. A lot of transactions occur digitally. As such, most of the banking does too. This makes it all the more strange to discover how Sweden doesn’t have instant payments as of yet. The domestic central bank is looking into this option as of right now.

Instant Payments Remain a Gamble

More specifically Riksbank invites participants in the RIX system to give their views on this possible change. With the payment landscape in Sweden changing rapidly, a new course of action is warranted. In this day and age, payments need to be completed 365 days per year on a 24/7 basis. However, that is not possible under the current system in Sweden.

There is a good reason as to why this development occurs right now. More specifically, Riksbank wants to promote a safe and secure payment system. Instant payments are, by definition, neither safe nor secure unless properly implemented. This is why the consultation round makes a lot of sense for all parties involved.

Building the necessary infrastructure to do so will not be easy. The central bank of Sweden isn’t equipped to deal with this form of payments as of right now. Even so, the Eurosystem will transition to instant payments in the very near future. Preparing for the inevitable future seems to be the smart approach in this regard.

Header image courtesy of Shutterstock

JOIN THE DISCUSSION