Cash is King! Elsewhere…
Sweden last introduced new bills and coins in 2015 and 2016. And to be honest, I don’t really know who’s on which bill (I had to google.) I do know they’re all artists but we use cash so rarely that it’s become a political topic in these troubled times.
What happens if online doesn’t work? It keeps our national bankers and the finance minister awake at night.
Alas, that is Sweden for you, and if you come and visit us, you better be prepared for it because most shops, cafés and restaurants no longer accept cash!
We pay with our phones and watches, mostly, or we tap
I was at our local airport the other day and there was a huge billboard from a currency exchange firm telling us that globally, half of all payments are still made with cash. Good advice for Swedes. Because we don’t. At all. The fact of the matter is that in most places you cannot pay with cash anymore! That is crucial to know, as it includes e.g. public transport!
I would advise you not to exchange your euros, dollars, or whatnot into Swedish Kronor (SEK) not just because you’ll never get your money back, as ours is a weak currency, but also because you’ll be stuck with it.
Our most common methods of payment are: Credit Cards (either physical or more and more using our smartphones and watches, i.e. Apple or Google Pay.) It’s so convenient and the pandemic virtually killed cash. Sweden has its own “Venmo”, called Swish, and we use that domestically to send money to one another and pay for services, too. Sadly there is still no interoperability with other countries.
How do I tip?
This is currently a hot and contentious topic. Tipping has no real history in Sweden, at least not in the sense you see it in the United States where servers rely on tips to make a living. Here, our collective agreements between unions and employers guarantee a certain percentage as part of someone’s salary. So it’s not really needed.
Traditionally, we simply rounded up for excellent service, say from SEK 82 to 100. With the disappearance of cash and modern electronic payment options, it’s become more complicated. Most of the service providers have US backgrounds and our new payment terminals automatically include a screen where you can choose to add a tip (or not), whether it is for a cabby or a server.
What about pre-paid services? Say a bellboy or a tour guide, where you’ve already paid for the service to the employer in advance, or to someone else? That’s where cash is still an option. You can either use an ATM (available at stations or e.g. malls) to withdraw some money, or you can simply tip using a major currency. While my guests are not expected to tip me, I’ve had very happy clients leave me everything from Swedish Kronor to Swiss Francs, Euros, or US Dollars. As a frequent traveler to these countries myself, they’re highly appreciated and an acknowledgment of great service. As for the amount, follow your heart and what you feel comfortable with.
Why cash ain’t king in Sweden
Part of this has to do with our legislation around taxes. If I show up at a bank with a wad of cash (or even just a couple of bills) there will be questions asked about their provenance. That’s Basel III for you and the fight against money laundering. But also, if you accept cash tips you’re legally supposed to declare that and pay taxes which nobody ever did (except for the part they get through their salaries.) That in turn pays for our common services and our future pension. The government wants to make sure that all income is properly taxed and therefore encourages the transition to electronic payments. It provides for better control. On the other hand, it’s challenging for some of our older generations as they’re not used to all the tapping of cards or the use of smartphones.