Despite the fact that Sweden is a largely digitized country, there is a broad political consensus on the need for functioning cash management.
One reason is inclusion. A large group of Swedes still live in digital isolation and for them cash is absolutely necessary to cope with everyday life.
Another reason is crisis preparedness. If electricity or data communications are cut off, it is important that cash is available as an alternative to digital payment methods.
But for us to be able to pay with cash, the entire cash chain must work. It is not enough that people have access to cash. Authorities, shops and restaurants must also accept cash. These actors, in turn, need to get hold of change and hand in cash registers. In addition, people need to be able to pay bills in cash over the counter.
However, the steadily decreasing demand for cash has meant that many companies offering cash services have scaled back or ceased operations. Certain parts of the cash chain are today very vulnerable.
For Kalmar county, that image is strengthened by a new report where the county board states that the political goal that all residents should have access to basic payment services – including cash – is not being achieved.
In December, the government submitted a legal council referral on how cash as a payment method can be strengthened. The government’s proposal is to
– grocery stores and pharmacies must be obliged to accept cash
– the largest banks must give consumers the opportunity to deposit cash
– the largest banks must offer services for exchange management and daily cash deposits for companies.
The proposals are good, but they do not remedy all the weaknesses in the cash chain.
We lack measures that promote trade’s cash management. Here, the state needs to make it more attractive to handle cash, for example by expanding the Swedish Post and Telecommunications Agency’s mandate to also include support for merchants’ cash handling. Trade can also take social responsibility through self-regulation. In addition, consumers can create demand pressure on commerce by actively choosing cash as a means of payment.
We also lack proposals regarding cash bill payments over the counter. Today there is very limited such service. Our proposal is that the state once again provides a nationwide cash register service, as it was until 2008.
Both consumers and private actors can act to strengthen the cash chain. Ultimately, however, it is the state’s responsibility to maintain the socially important cash infrastructure.
Nina WenningVd Bankomat AB
