Studies reveal Scandinavian countries are forefront of Europe's move towards cashless societies


(MENAFN) Recent studies have revealed that Scandinavian countries are at the forefront of Europe's move towards cashless societies, with Norway, Finland, and Denmark leading the charge. Norway, in particular, stands out as the most prepared for a cashless future, with approximately 96% of its population relying on electronic banking and a low number of ATMs. Finland and Denmark follow closely behind due to their high number of ATMs and growing use of electronic banking.

Other countries like Sweden, the Netherlands, Iceland, Estonia, Lithuania, Cyprus, and Switzerland are also progressing toward cashless payments, while nations such as Armenia, Georgia, and Germany are slower to adapt.

The widespread adoption of digital payment systems in Scandinavia is driven by factors like low population density, harsh climates, and high levels of trust in public institutions, making these countries ideal for experimenting with new payment policies. Notably, Norway's largest bank advocated for discontinuing cash payments in 2016 to combat illegal activities like money laundering. This shift was further supported by the rise of digital wallet apps like Vipps, which now boasts millions of users across Norway, Finland, and Denmark.

Despite the growing trend towards cashless payments, the Norwegian government recently amended the Financial Agreements Act to protect the use of cash when necessary, responding to concerns about potential cyber threats. Europe's overall use of cash has decreased significantly, especially after the COVID-19 pandemic, though many Europeans still want the option to pay with cash, reflecting the challenges of balancing digital innovation with traditional payment methods.

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