The Swedish experience

Sweden is frequently cited as a likely first cashless economy because banks pushed out cheques in the early 2000s, cash as a percentage of GDP was only about 2.6% in 2011, and digital payment options like ubiquitous card readers and mobile apps are widely used.

According to the article, cash represented about 2.6% of GDP in Sweden in 2011, while Australia's cash-to-GDP ratio is around 3.5%, indicating Sweden was using cash less as a share of economic activity.

Banks played a major role by eradicating cheques in the early 2000s, partly through high fees, and by collaborating on payment solutions such as the Swish mobile app launched by the country’s six big banks.

Swish is an Android and iOS app launched by Sweden’s six major banks that enables mobile peer-to-peer payments between account holders at any of those banks, making instant transfers between individuals easy.

Swedish startups such as iZettle provide smartphone card readers that let small and micro businesses accept card payments, a model similar to Square in the US and PayPal’s Here.

Yes. Credit card readers are described as ubiquitous in Sweden, appearing everywhere from parking meters to petrol bowsers, making card payments widely accessible.

Yes. Sweden’s former central bank chief Lars Nyberg warned that cash is likely to remain like a 'crocodile' of payments because it is easy to use, suggesting cash may persist even with many digital alternatives.

Everyday investors can note how bank-led initiatives and fintech startups, such as the Swish app and iZettle’s card reader, have driven rapid adoption of digital payments and reduced cash use—trends that highlight the importance of payment infrastructure and consumer adoption in the fintech space.