Swedish Law Now Requires Direct Payment Options First

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Swedish Law Now Requires Direct Payment Options First

The Swedish Parliament approved an amendment to the Swedish Payment Services Act (2010:751) that changes the way payment solutions are displayed online. The change applies in situations where the consumer buys goods or services online and includes the following requirements:

  • If a merchant accepts at least one payment method that does not involve the extension of credit to the consumer, that payment method must be presented first within the list of all available options. The amendment does not make having a non-credit payment method compulsory for merchants, who are still free to choose which payment methods they wish to accept.
  • If the merchant accepts at least one payment method that does not involve credit, the payment options involving credit must not be pre-selected on the merchant’s website.

These new requirements are not imposed directly on online merchants but instead on their payment service providers [PSPs], for example an acquirer in relation to card-based payments.

The amendment has been applied on 1st July 2020.

The Rationale for the Amendment

The reason this amendment has come into force is that consumer credits have increased since 2016 and are continuing to increase at a rate of 7% per annum. According to the Swedish Financial Services Authority (SFSA), this increase in consumer credits may pose a risk to individual households due to the high related costs (i.e. interests and fees).

According to preparatory works prior to the amendment, the decision to use a credit-based payment option should be the result of an active choice by the consumer. The explanation provided supports that if payment options involving credit are presented first on a merchant’s website or its mobile app, and sometimes preselected, this increases the risk that the choice of the consumer towards the credit option payment method is not genuinely active in nature.

This presents the danger that consumers might proceed with purchasing products or services by a payment option that involves credit without having fully considered whether their financial situation allows for a credit purchase, when often the buyer does not have the necessary resources in order to afford the purchase.

Trust In Trustly



The new trends of paying online via real-time bank transfer, along with the Swedish legislation are good news for both consumers and merchants alike. Merchants can benefit in the long run when providing an easy, straightforward checkout experience for consumers, decreasing the chances for chargebacks and enjoying guaranteed payment at the same time.

One of the most popular payment methods in Sweden is Trustly, which is also available in Denmark, Estonia, Finland, Germany, Latvia, Lithuania, Netherlands, Norway, Poland, Slovakia, Spain and the UK.

Trustly is a real-time bank transfer method, where the customer can transfer the desired amount of funds into the merchant’s account for purchasing goods and services online. The consumer payment experience is seamless and easy, not requiring the shopper to input sensitive card data. The purchase is confirmed with instant purchase confirmation, and as per the new Swedish law, it is a debit-based payment.

Trustly shoppers can also:

  • Choose to pay from any of their bank accounts
  • Do not need registration
  • Don’t need to worry about daily transaction limits
  • Get faster refunds.

If you are interested in adding Trustly as an available payment method on your online store, get in touch with Powercash21's sales team by filling the form on your right. 

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