Sweden’s central bank has announced the need for modernization of the country’s retail payment infrastructure to support more instant payments and provide third-party access to payment and settlement systems.
The Riksbank emphasizes that future retail payment infrastructure must align with European standards and be capable of processing payments both instantly and at scheduled times, as well as accommodating new entrants utilizing innovative technologies.
According to the central bank, “In recent years, the clearing infrastructure has not kept pace with the development of new standards, legal requirements, and other changes in the Swedish retail payments market.” They stress the necessity of modernizing the infrastructure for clearing and settling retail payments to meet current changes and anticipate future demands.
The central bank advocates that payments should be settled using central bank money whenever possible. New participants, such as payment and e-money institutions, should have the opportunity to access the Riksbank’s settlement system and payment clearing infrastructure. Additionally, the future framework must provide robust protections against money laundering, cyber threats, and other operational disruptions.
Operators in Sweden’s retail payments sector will need to adapt their systems and processes, a task described by the central bank as complex and time-consuming. “This is essential to ensure stability and efficiency in the Swedish kronor payment infrastructure moving forward,” asserts the Riksbank. “A modernized infrastructure will also encourage innovation within the Swedish payment landscape.”
The Riksbank further notes that if market participants fall short in their responsibilities, it may be necessary for the government, including the Riksbank, to take a more active role in guiding the development of Sweden’s retail payment infrastructure.