The Deep dive: Sweden’s Pay by Bank Boom

By Puja Sharma

The deep dive’ is our bi-weekly exploration of a relevant topic, hot trend, or new product. For Prime subscribers only.

How does it work?

Swedes are embracing a major shift in how they manage their finances, with Pay by Bank rapidly becoming the go-to method for everyday payments. According to the Sweden Pays 2024 survey, conducted by Insight Intelligence in collaboration with Trustly, Adyen, Swedbank, and PostNord Strålfors, over 98% of Swedes now use direct payment solutions from leading brands, signaling a clear move away from traditional payment methods.

The survey shows that nearly 40% of Swedes are now using Pay by Bank for essential expenses like rent and bills. This growing preference for bank-linked payments is a testament to the country’s increasing demand for simpler, more efficient ways to handle financial transactions. With the convenience of paying directly from a bank account, consumers are opting for this seamless method over time-consuming and complex online payment processes.

Who is under the radar?

The shift away from traditional online payment systems is driven by frustration with the excessive steps involved. One in four respondents (25%) pointed out that navigating multiple steps to complete an online transaction is one of the most frustrating aspects of the process. Similarly, 23% cited the need to manually input card or contact information as a tedious and time-wasting task.

The survey results also reveal the key features Swedes prioritise when choosing a payment solution. Nearly half of respondents (48%) consider ease of use to be the most important factor, followed by speed, which is essential for 20% of those surveyed. This focus on simplicity and efficiency aligns perfectly with the attributes of Pay by Bank services, which offer a streamlined and hassle-free transaction experience.

Johan Tjärnberg, Group CEO of Trustly, noted the growing awareness of the Pay by Bank method in Sweden, adding, “The shortcomings in traditional online payment systems and the features people prioritize suggest there’s plenty of room for growth for Pay by Bank solutions. The increasing recognition of Trustly is encouraging as we aim to strengthen our presence in our home market.”

Why does it matter now?

Trustly has seen a notable rise in brand awareness among Swedes. From 2019 to 2024, nearly 45% of Swedes have become familiar with or actively used Trustly’s products, underscoring the increasing acceptance of direct payment solutions in the country.

The Sweden Pays 2024 survey, tracks the evolving payment behaviors of Swedes and highlights their shifting preferences toward more direct and efficient financial solutions. This year’s findings reflect a continued trend toward digital payment methods that offer simplicity and efficiency, with Pay by Bank solutions emerging as the frontrunner in this space.

In conclusion, the survey results point to a future where Pay by Bank is central to Sweden’s payment landscape. As consumers demand faster, easier, and more secure ways to handle their finances, Pay by Bank is positioned to lead the charge. With growing brand awareness and increasing adoption, the trend toward direct payment solutions is set to continue reshaping how Swedes manage their money in the years to come.