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Cashless Society: When Will Merchants Stop Accepting Cash in Sweden - A Research Model

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Enterprise Applications, Markets and Services in the Finance Industry (FinanceCom 2016)

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 276))

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Abstract

Over the past decades, we have witnessed changes into how individual’s pay. In particular, there has been a drop in the use of cash as payment instrument both in terms of value and frequency. Consequently, the amount of outstanding cash is shrinking. For instance, in Sweden the level of cash is around 1.5% of Gross Domestic Product. This might be a tipping point for when cash is of practical use. In the paper, we present a research model that explores when merchants will stop accepting cash.

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Notes

  1. 1.

    The Riksbank law states that cash is legal tender in Sweden and should therefore be accepted, but the freedom to enter contracts underpinning contractual and commercial law implies that a payer and a payee can enter an agreement that sets the Riksbank law aside. It should be noted that there are few court case rulings in this area and none in the highest court. This is not the case in Denmark or Norway, where central bank laws have superiority over contractual and commercial law.

  2. 2.

    It should be mentioned that Sweden is currently replacing all banknotes and most coins with new ones. The direct short-term impact of this on the value of currency in circulation is ambiguous but it does not affect the strong long-term negative trend.

  3. 3.

    See www.getswish.se.

  4. 4.

    A proxy for experience with cards.

  5. 5.

    A proxy for familiarity with new technologies.

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Author information

Authors and Affiliations

  1. KTH Royal Institute of Technology, Stockholm, Sweden

    Niklas Arvidsson

  2. Copenhagen Business School, Frederiksberg, Denmark

    Jonas Hedman

  3. Sveriges Riksbank, Stockholm, Sweden

    Björn Segendorf

Authors
  1. Niklas Arvidsson
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  2. Jonas Hedman
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  3. Björn Segendorf
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Corresponding author

Correspondence to Jonas Hedman .

Editor information

Editors and Affiliations

  1. University of Freiburg, Freiburg, Germany

    Stefan Feuerriegel

  2. University of Freiburg, Freiburg, Germany

    Dirk Neumann

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Arvidsson, N., Hedman, J., Segendorf, B. (2017). Cashless Society: When Will Merchants Stop Accepting Cash in Sweden - A Research Model. In: Feuerriegel, S., Neumann, D. (eds) Enterprise Applications, Markets and Services in the Finance Industry. FinanceCom 2016. Lecture Notes in Business Information Processing, vol 276. Springer, Cham. https://doi.org/10.1007/978-3-319-52764-2_8

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