Rapid growth in Swedish e-commerce market
Webteam: 18th August 2014 10:39am
Significant numbers of Swedish consumers are willing to purchase online and use their payment cards for online payments, according to a new report by the Lafferty Group.
In fact, in most retail sectors online sales are growing at a rate far surpassing that of direct sales. The billed volume of e-commerce payments increased significantly by about 70 percent in 2013, when compared with 2012. Growth in the e-commerce market is one of the major factors for a significant increase in the billed volume made on payment cards in Sweden.
Cards and cash are the most prevalent payment methods in Sweden but the usage of cards over cash has continued to increase. Major issuers estimate that 80 percent of purchases in stores during 2012 were paid by card, highlighting the declining importance of cash. The value of card payments exceeded the value of cash payments for the first time in 2010.
The value of banknotes and coins in circulation as a percentage of GDP has gradually dropped from 10 percent in 1950 to 2.4 percent in 2013.
"A key growth driver of e-commerce is Sweden's ongoing movement towards a cashless society", said Lafferty's deputy head of research, Phathisani Khumalo. "As a result the outlook is less assured for both ATM and cash transactions. Indeed both ATM and cash transactions are projected to record very low if not negative growth rates in the short to medium term."
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