# Sweden

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The total number of businesses in Sweden as of 2018 was 1,228,854. A total of 68,113 new businesses were started in 2018, and sole traders accounted for 15,666 of those businesses.

### RESEARCH STRATEGY

After a thorough and wide-reaching search through Sweden business authoritative agencies' databases, media sources, and company data aggregator databases such as the Business Registration Officer of Sweden, Statistics Sweden, Hoovers, DN.se, GP, and Aftonbladet, we were able to publicly find some information regarding the Swedish number of sole traders and new businesses as well as data points we leveraged to triangulate a proxy for those not found preexisting.

While OECD provided information regarding the breakdown analysis of businesses in Sweden by the number of employees (1-9, 10-19, 20-49, 50-250 over 250), the total number did not correspond with the data provided by Statistics Sweden. This informed our decision by outline the breakdown of business in the range of less than ten (one to nine), less than 200 (10 to 199), and 200 and above.

We also leveraged publicly available information regarding businesses in Sweden estimated annual turnover published by Hoovers on its database to estimate the number of businesses in Sweden with an annual turnover of less than 50 million EUR. The database published a business directory of companies and enterprises in Sweden, numbering 9,140, with their corresponding annual sales revenue estimates in USD. We then used a currency converter to determine the value of 50 million EUR in USD to determine the number of businesses in Sweden with less than 50 million EUR in annual turnover.

### ESTIMATION OF THE NUMBER OF BUSINESSES WITH LESS THAN TEN EMPLOYEES

Businesses with less than ten employees = business with one to four employees + businesses with five to nine employees
2018 = 248,324 + 43,830 = 292,154
2017 = 237,272 + 43,556 = 280,828
2016 = 227,101 + 43,416 = 270,517
2015 = 224,993 + 43,297 = 268,290
2014 = 219,515 + 42,786 = 262,301

### ESTIMATION OF THE NUMBER OF BUSINESSES WITH LESS THAN 200 EMPLOYEES (10-199)

Businesses with less than 200 employees = businesses with 10 to 19 employees + businesses with 20 to 49 employees + businesses with 50 to 99 employees + businesses with 100 to 199 employees
2018 = 24,116 + 14,304 + 4,439 + 1,987 = 44,846
2017 = 23,803 + 14,115 + 4,322 + 1,956 = 44,196
2016 = 23,597 + 13,626 + 4,249 + 1,903 = 43,375
2015 = 23,157 + 13,337 + 4,042 + 1,856 = 45,392
2014 = 22,844 + 13,079 + 3,935 + 1,788 = 41,646

### ESTIMATION OF BUSINESSES WITH 200+ EMPLOYEES

2018 = 1,132 + 974 = 2,106
2017 = 1,084 + 955 = 2,039
2016 = 1,056 + 940 = 1,996
2015 = 1,032 + 925 = 1,925
2014 = 1,012 + 920 = 1,932

### ESTIMATION OF THE TOTAL NUMBER OF BUSINESSES IN SWEDEN

Total number of businesses = number of businesses with zero employee (sole traders) + number of businesses with less than 10 employees + number of businesses with less 200 employees + number of businesses with 200+ employees
2018 = 889,748 + 292,154 + 44,846 + 2,106 = 1,228,854
2017 = 884,654 + 280,828 + 44,196 + 2,039 = 1,211,717
2016 = 884,218 + 270,517 + 43,375 + 1,996 = 1,200,106
2015 = 865,122 + 268,290 + 45,392 + 1,925 = 1,180,729
2014 = 852,470 + 262,301 + 41,646 + 1,932 = 1,158,349

### ESTIMATION OF THE NUMBER OF BUSINESSES WITH ANNUAL TURNOVER OF LESS THAN 50 MILLION EUR

Based on Hoovers' business directory of companies and enterprises in Sweden, only 212 businesses have annual revenues greater than 50 million EUR (55.53 million USD). The remaining 8,928 out of 9,140 businesses listed in the business directory have less than 50 million EUR in annual turnover.
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## Co-working Space: Sweden

There are five major co-working space providers operating in Sweden. They are The Park, Mindpark, 7A, Helio, and Regus. Regus is the largest provider with 17 locations in Sweden.

### CO-WORKING SPACE PROVIDERS IN SWEDEN

• Co-working space operators with three or more locations in Sweden include The Park, Mindpark, 7A, Helio, and Regus.
• The Park operates co-working spaces in three locations in Stockholm (link to website). They are located in areas such as Hälsingegatan, Magnus Ladulåsgatan, and Sveavägen.
• Mindpark operates co-working spaces in three locations in southern Sweden (link to website). They are located in cities such as Malmö, Helsingborg, and Lund.
• 7A operates co-working spaces in three locations in Stockholm (link to website). They are located in areas such as Strandvägen, Vasagatan, and Norrtullsgatan.
• Helio operates co-working spaces in eight locations in Stockholm (link to website). They are located in areas such as Grev Turegatan, Kista, Hötorget, and others.
• Regus operates co-working spaces in 17 locations across Sweden (link to website). They are located in cities such as Stockholm, Solna, Gothenburg, and Malmö.
• Over 60 co-working space providers such as Impact Hub, Box Space, and others, operate only one location in Sweden. Some operators such as Embassy House and No. 18 operate two locations in Sweden.
• Global co-working space operators such as WeWork and Spaces operate only one location in Sweden.
• According to a 2019 report published by the Cushman & Wakefield, Stockholm was ranked third on the European Coworking Hotspot Index.

### RESEARCH STRATEGY

To identify the number of major co-working space providers in Sweden, we first examined the operators listed on coworking databases such as Coworker and Coworking.Coffee. Coworker has listed 87 locations in Sweden, making it the database with the most comprehensive list of coworking spaces for this market. Other databases such as Coworking.Coffee has provided only 15 locations. The website of every provider listed on these databases was examined to identify the number of coworking spaces that they operate. Among the 70+ providers examined, only The Park, Mindpark, 7A, Helio, and Regus operate co-working spaces in three or more locations in Sweden.

To ensure that every popular co-working space provider in Sweden have been examined, we also studied additional providers listed on articles published by The Nordic Hub, EU Startups, and Startup Guide. These articles talked about the best coworking spaces in Stockholm. It is assumed that they focused on Stockholm as the city is known for being a coworking hotspot in Europe. The majority of the providers considered the “best” were already listed on the databases mentioned above. The additional providers examined such as A House and Goto 10 operate only one location.

Lastly, we examined some of the largest coworking companies in the world or Europe that were not listed in the databases and articles mentioned above. Global players such as WeWork and Spaces operate only one location in Sweden. Europe-based coworking space providers such as Talent Garden and Silver Square do not operate any location in Sweden.
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## Registering a New Company: Sweden

For registering a business in Sweden, there are three procedures and they take seven days to complete. Of the three procedures, the time-consuming one is registering with the company registry, and it is mandatory that after receiving the company registry application, a company is registered in five days. Below is the deep overview of the topic.

### GENERAL

• Statistics Sweden is an exhaustive database on Sweden and its demographics and can be useful to new entrepreneurs.
• There are trade organizations whose websites can help a new entrepreneur collect information on each industry sector before starting a business. Such organization includes The Swedish Hotel and Restaurant Association, The Swedish Trade Federation, The Swedish Construction Federation, The Swedish IT and Telecom Industries, and Lantmännen, a national organization that covers agriculture and farmland resources.
• The Swedish Jobs and Society Foundation provides advice to new businesses.
• Verksamt is a website run by three Swedish government authorities, the Companies Registration Office, the Tax Agency and the Agency for Economic and Regional Growth, to help new businesses find advisors in their respective regions.
• Almi Företagspartner (Almi) is a state-owned company that helps businesses with capital and advice, but their interest rates are higher than banks.

### HOW LONG THE GOVERNMENT REGISTRATION PROCESS TYPICALLY TAKES

• For registering a business in Sweden, there are three procedures involved and the average time it takes to complete these procedures is seven days.
• For registering a business in Sweden, the paid-in minimum capital requirement is SEK 50,000.
• The first procedure for registration is to "obtain a written statement from a Swedish bank certifying that the total cash amount to be paid for shares has been deposited in an account". This procedure takes one day.
• The second procedure involved is to "submit the application to the Swedish Companies Registration Office (Bolagsverket) and obtain the registration certificate". This procedure takes five days.
• The third procedure involved is to "register with the Swedish Tax Agency (Skatteverket)". This procedure takes one day.
• Construction permits have eight procedures, and the time taken to complete them is 117 days.

### CHALLENGES ASSOCIATED WITH THE GOVERNMENT REGISTRATION PROCESS

• There are three procedures involved in getting an electricity connection for a business, and it takes 52 days to complete all the procedures.

### CHALLENGES ASSOCIATED WITH SETTING UP BUSINESS BANKING ACCOUNTS

• It is better to start with smaller deposit amounts while opening a bank account, and if the deposit amount is huge, it takes more time.
• Depositing a cheque in Sweden requires a huge fee and it will take several days to get cleared.
• For opening a Swedish bank account, one should normally have stayed a minimum of 12 months in Sweden and also have a Swedish personal identification number.
• Different bank branches require different documentation from an international customer.

### WHETHER SWEDEN IS GENERALLY CONSIDERED CHALLENGING FOR THOSE SETTING UP A BUSINESS, AS COMPARED TO OTHER REGIONS

• Sweden is a high-tax country, and in this country, employees are entitled to generous social benefits and vacation time.
• The Employment Protection Act (Lagen om Anställningsskydd, shortened as LAS) of Sweden mandates that employment contracts are for an indefinite time period unless it is otherwise explicitly stated in the contract, and the new entrepreneur should pay attention to this when drafting the contract.
• Swedish employment law has many provisions for parental leave, holiday, and pension entitlements.
• As per World Bank's annual ratings, Sweden is ranked 12 among 190 world economies in the ease of doing business.
• The business sentiment index in Sweden has been the lowest since July 2013. In July 2019, it was at 97.4.
• The corruption index of Sweden is 85 (the scale is 0-100, and the higher the index, the lower the prevalence of corruption) and corruption rank was 3 in July 2019.

### IS THE GOVERNMENT/CULTURE CONSIDERED FRIENDLY TO NEW BUSINESSES?

• About 65% of Swedish people, aged 18 to 64, think there are "good opportunities to start a firm where they live".
• Swedish laws make it difficult for monopolies to grow and dominate the market, thereby presenting a good climate for small and medium businesses to grow.
•  Sweden’s corporate tax rate is 22% as compared to the U.S. tax, which is 39%.
• In Sweden, businesses can have a major share of their income "taxed as capital income, which has a lower tax rate".

### ARE THERE SIGNIFICANT CHALLENGES?

• In Sweden, it is difficult to recruit a talented workforce from abroad because income taxes for the middle class are very high compared to those in other countries.
• In Sweden, if one does not speak Swedish very well, there could be difficulties in doing or starting a business, which includes difficult to understand how things work.

### WHETHER THERE ARE ANY DIFFERENCES IN THE PROCESS OF SETTING UP A BRICK-AND-MORTAR BUSINESS VS. AN ONLINE BUSINESS

• According to Relocate To Sweden website, a website that provides information on migration to Sweden, a residence permit card is processed in Sweden in about three weeks.
• Any business in Sweden is identified by a personal identity number (personnummer) which is provided to the entrepreneur by the Swedish Tax Agency (Skatteverket).
• The F-skatt application forms are available only in the Swedish language, and to get them filled in correctly, a non-Swedish speaking person will need the help of an accountant and/or make a personal appointment with the Tax Agency for guidance.
• For those who know Swedish, for F-Skatt registration, the Swedish Tax Agency offers free information meetings in the Swedish language, providing step-by-step instruction.
• The residence requirements for those moving to Sweden to start a company for Nordic citizens (Denmark, Finland, Norway, and Iceland), they do not need to register with the Swedish Migration Agency (Migrationsverket) or apply for a residence permit.
• Citizens of the European Union (EU) or European Economic Area (EEA) can also reside in Sweden without registering with the Swedish Migration Agency, they can just apply for a personal identity number (PIN).
• A non-Swiss citizen who requires a staying for more than three months needs to have a residence permit.
• Those who are from outside of the EU/EEA/Switzerland and want to start a business in Sweden will have to apply for the residence permit before they come to Sweden.
• A temporary resident in Sweden can apply for a co-ordination number, which will replace the personal identity number, to enable him/her to apply for F tax registration.
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## FinTech Climate: Sweden

The climate for FinTech businesses in Sweden is flourishing as this country has had a stable financial market for years. Below is an overview of the collected insights.

### FINTECH BUSINESS ENVIRONMENT IN SWEDEN

• The FinTech business is thriving as the high trust in this country’s financial system and its continuously stable financial market, have created "a unique environment in which consumers welcome new FinTech solutions".
• The Swedish market seems to be following trends in the global market, which has been growing over the last few years with the adoption of newer technologies and acceptance across newer markets, and 2017 was no different. The year saw the space garner \$31 billion in funding globally, aggregating to a total global investment of \$122 billion over the last three years.
• Sweden has been attracting nearly two-thirds of FinTech investments within the Nordic region.
• Generally, "The World Bank’s Doing Business 2018 report" ranks Sweden the #10 globally on the ease of conducting business. It also estimates the time to start a business within Sweden at seven days.
• In 2018, 188 FinTech companies were established in the Stockholm greater area.
• With a growing investor interest in the potential of technologies such as Artificial Intelligence (AI), Blockchain, and the Internet of Things (IoT), expected to impact the financial services sector, the FinTech space is dominating the tech sector globally. Sweden saw the space attract the largest portion within tech investments during 2017.
• The last quarter of 2017 saw BIMA (Insurtech) and iZettle (Payments / transactions) rank amongst the top 10 FinTech funding deals within Europe. The success of the Swedish FinTech space reflects in the fact that the country has consistently attracted nearly two-thirds of the Nordic FinTech investments consistently over the last two years.

### FACTORS DRIVING THE GROWTH OF FINTECH IN SWEDEN

• Research and development-Sweden spends 3.26% of its Gross Domestic Product (GDP) on research and development activities, compared to 2.97% in Switzerland, 2.87% in Germany, and 1% in the United Kingdom (UK).
• The 2018 Bloomberg Innovation Index underlines Sweden’s dominance in innovation, ranking the country in 2nd place globally.
• Being an innovation hotbed, the country offers a vibrant startup scene. Stockholm is ranked #3 amongst Europe’s ten best cities for startups with 144 companies included with the 5000 Inc. Europe.
• In 2017, Swedish FinTech companies raised \$358 million in 59 rounds of investment.

### INSURTECH

• A highly regulated sector, insurance has seen the adoption of tech at a comparatively slower pace. However, this is changing as 2017 "saw a record level of VC investment" and deal volume with \$2.1 billion across 247 deals globally.
• In fact, one of the biggest investments in the fourth quarter was into local bred startup BIMA, offering micro-insurance via mobile phone technology.

### CAPITAL

• With approximately 99% of enterprises in Sweden being Small and mid-size enterprises (SME’s), crowd funding has been lapped up in recent years. In Tessin and FundedByMe, Sweden boasts of the region’s top crowdfunding platforms.\
• The Swedish government has expressed an intent to encourage crowdfunding as a credible way for SME’s to raise money and conduct business.

### CRYPTOCURRENCIES

•  From Malmö in the South, where payment solution company Plingpay is using bitcoin’s blockchain as a bridge between traditional currencies, to Boden in the far North, where several crypto mining and blockchain companies have established data centers, Sweden is solidifying its position as a hotspot for cryptocurrency experimentation and innovation.

### WEALTH MANAGEMENT

• Projected to be amongst the fastest growing segments, the process of traditional wealth management is increasingly facing the threat of tech enabled wealth management. The robo-advisory segment globally is expected lead growth during the coming years.
• Recently, Swedish FinTech startup called Qapital raised \$30 million in funding to move into the robo advisory space, counting investors Swedbank Robur, Norron, SEB Stiftelsen, Athanase, and Northzone.

• With exchanges across the globe exploring avenues to adopt blockchain’s native capabilities, this relatively unpopulated segment is expected to see an increased level of interest, domestically and globally.
• The latter part of 2017 saw SEB and NASDAQ, Inc. announce a joint project to test a developed prototype for a mutual fund trading platform based on blockchain technology.

### PROACTIVE AND FRIENDLY REGULATIONS

• Sweden’s success across financial innovation in the past has been aided by proactive measures undertaken by the regulator in facilitating growth and innovation.
• Sweden has amongst the lowest corporate taxes at 22% and there is no local taxes for companies.

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## FinTech Companies: Sweden

Research successfully identified ten Sweden-based FinTech companies that operate in Sweden and received series A, B, C, and/or D funding during the years of 2018 and 2019. Anyfin, Dreams, Minna Technologies, Tink, and TransferGalaxy, are some of those identified by research.

### WHAT THEY DO

• Hedvig is a startup insurance company that offers its services strictly through the use of its app. Using automation and machine learning, Hedvig provides its customers with all the tools necessary to purchase home insurance, pay premiums, report an accident, file a claim, and receive cash compensation in a matter of minutes via their app.
• Hedvig is unique from typical insurance companies, not only in the fact that they rely entirely on a chatbot and application to provide quality customer service and to communicate with their customers, but they are also the only insurance company in the world who takes any remaining, left-over, money from claims, and donates it to the customer's charity of choice.

### WHAT THEY DO

• P.F.C. offers its services through an application paired with the use of a contactless MasterCard, provided for free, whose main goal is to help customers keep track of their money and gain insights into how they are spending their money.
• This application uses automatic categorization to track where and how money is being spent and allows users to construct a personal budget based on the insights derived from the data collected.

### WHAT THEY DO

• Tink is a platform designed to provide banks and financial institutions with innovative plug and play technology that can be tailored to meet the needs of their customers.
• This application allows bankers to provide personal management services, data enrichment, account aggregation, and payment initiation services to their customers.
• In addition, Tink also provides its users with insights from Europe's top bankers.

### WHAT THEY DO

• TransferGalaxy offers services to individuals in need of a secure way to send money across the globe.
• Their services are completed within seconds and can be sent using a variety of different methods, all with low costs.

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## Digital Services Trends: Sweden

Current trends in digital service offerings to Swedish businesses have largely been born out of customer-facing financial applications. Account aggregation, payment initiation and invoicing applications originally geared towards individuals are now offered to businesses through a single, cloud based platform. Blockchain technology also offers businesses an opportunity to streamline data and create efficient, secure processes.

### TREND 1: PRODUCT LICENSING

• Description: Services such as account aggregation (AIS) and payment initiation (PIS) applications are integrated into a single, cloud-based platform through Application Programming Interface (API) Integration. Providers can combine multiple product offerings into one platform and license the package out to retail banks and other businesses.
• Why is it trending? Many financial services providers began in the consumer-facing space, developed robust technology, and now look to scale their business. A natural progression is to offer the same, trusted underlying technology to banks and other businesses.
• Example: First launched in 2012 Tink began as a consumer-facing finance App and has since repositioned its offering and now licenses its products to a number of open banking providers. The company’s technology is already integrated with banks such as BNP Paribas Fortis, ABN AMRO and Nordea.

### TREND 2: WEB-BASED INVOICING AND PAYMENT SOFTWARE

• Description: Similar to the account aggregation services discussed earlier, API integration can also provide solutions for generating and sending invoices, payment acceptance, recurring payments, and sending payment alerts.
• Why is it trending? A study has shown that 76 percent of customers claim the invoice to be their only point of contact with their supplier. For these energy, telco, or insurance companies the payment is the most important time to improve the customer experience.
• Example: Billogram caters to the "need of increased customer engagement for companies with recurring payments, who offer products/services where the value is often taken for granted by customers."

### TREND 3: BEHAVIORAL BIOMETRICS

• Description: Machine learning based authentication solutions that detect anomalies in keyboard/mouse or environment behavior to identify unauthorized users. Technology is based on patented continuous authentication verification technology.
• Why is it trending? Behavioral biometrics solutions have proven to significantly reduce expenses related to fraud, false positive, and call center costs.
• Example: BehavioSec has a well-established reputation in behavioral biometrics research and development and is trusted by industry leaders such as Cisco and Gartner.

### TREND 4: CROWDFUNDING

• Description: Crowdfunding, or peer-to-peer (P2P) lending, connects investors with borrowers through an online marketplace. Sweden is home to multiple crowdfunding platforms, with some specializing in certain industries such as real estate investing.
• Why is it trending? 99 percent of companies in Sweden are listed as small and medium-sized enterprises (SMEs). Sweden was quick to embrace P2P lending and is today home to region’s top crowdfunding platforms.
• “As a lending marketplace platform the conditions in Sweden are extremely good for our operations,” said Erika Eliasson, chief investor relations officer at Lendify, a P2P lending platform based in Stockholm.
• Example: Lendify claims to be the largest P2P lending platform in Sweden, and in 2017 was appointed one of the world’s 100 leading fintech innovators by KPMG.

### TREND 5: BLOCKCHAIN TECHNOLOGY

• Description: Blockchain is a distributed ledger recording transactions of digital ownership in a verifiable and permanent way. A blockchain ledger is managed by a peer-to-peer network of computers and governed by a common protocol.
• Why is it trending? The possibilities with blockchain technology are wide-ranging, spanning the finance, social media, real estate, and insurance sectors.
• Example: The Stockholm Blockchain Group advises and implements blockchain technology for companies and institutions.

### RESEARCH STRATEGY

Sweden is widely regarded as one of the top countries in Europe for financial services startups. Your research team referenced numerous industry publications to identify the most talked about companies and the services they provide. "Top Fintech Trends in Sweden" was a standard title for many of the articles. The trends listed above represent the commonalities across those publications.
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In Sweden, the number of daily active Google Pay card holders is about 70,000; the number of Google pay payments by value would be roughly about 266.62 million Euro; the Number of Google pay payments by volume would be about 2.49 million; and the Number of merchants accepting Google Pay would be about 5,600.

### GOOGLE PAY USERS IN SWEDEN

• The number of Google Pay card holders in Sweden is 70,000.

### GOOGLE PAY PAYMENTS BY VALUE

• Google pay transaction volume by value worldwide is \$102 billion.
• There are about 24 million Google pay users in the world.
• From the above, we can calculate the % share of the number of Google Pay card holders in Sweden = (70,000 / 24 million) x 100 = (70,000 / 24,000,000) x 100 = 0.29%.
• Assuming this share to be true for the Google Pay payments by value, we can calculate the transaction volume for Sweden by Google pay users = 0.29% of \$102 billion = \$0.2958 billion or 266.62 million Euro.
• The Number of Google pay payments by value (EUR) in this country would be roughly about 266.62 million Euro.

### GOOGLE PAY PAYMENTS BY VOLUME

• Google, which recently re branded its payment offering from Tez to Google Pay, has 25 million monthly active users who have collectively carried out about 860 million transactions over the past year.
• From the above, we can calculate the number of Google pay payments by volume in Sweden. As Google Pay users percentage share in Sweden out of world's users in 0.29%, we can calculate the number of Google pay payments by volume in Sweden to be = 0.29% of the number of world's Google pay transactions = 0.29% of 860 million = 2.49 million.
• Therefore, the number of Google pay payments by volume would be roughly about 2.49 million in Sweden.

• Based on a recently published article by Business Insider, 2019, expanding its collaboration with PayPal allows Google Pay to offer a streamlined and popular payment option.
• Later, Google Pay may be able to recruit more of PayPal's 277 million active accounts to its service by promising a faster, more convenient checkout process that still uses PayPal.
• This integration could also help PayPal by connecting it with Google Pay merchants it hasn't worked with before, helping it grows its valuable merchant base, which comprises just 8% of the firm's total users but represents 90% of its volume.
• So, from the above, the merchant base of Google Pay "comprises just 8% of the firm's total users" and the total number of Google Pay users in Sweden is about 70,000.
• Therefore, we can calculate the number of merchants accepting Google Pay in Sweden = 8% of 70,000 = 5,600.
• So, the number of merchants accepting Google Pay in Sweden would be about 5,600.

• In November 2018, Google launched its mobile payment solution Google Pay in Sweden.
• Fourteen percent of Google Pay users have enrolled, 10% have used and 3% use it weekly.
• Thirty-one percent of internet users prefer mobile payments including Google Pay.
• Google Pay in the Scandinavian states of Norway, Denmark, Finland and Sweden is now officially available, opening up the service to millions within the Nordic nations who previously only had access to Apple Pay for mobile payments, having launched within the region earlier this summer.

### YOUR RESEARCH TEAM APPLIED THE FOLLOWING STRATEGY

In order to find the statistics showing how widely used Google Pay is in Sweden, we have initially looked for publicly available information through various reports articles obtained from Deloitte, TechCrunch, eMarketer Report, Merchant Machine, World Payments Report by Capgemini, Payments in the Nordics, a report by JP Morgan, and others. These sources provided some information on Google Pay usage worldwide but, nothing specific to Sweden. We also checked through the Statistical database, Statista and found the number of Google Pay users worldwide. But again, this did not reveal anything in relation to its usage in Sweden.

Next, in absence of any publicly available report, we tried to find if there was any paid report containing the desired data. We found one paid report titled 'Payments Landscape in Sweden: Opportunities and Risks to 2022' by Global Informa Inc. The report contains most of the relevant details in relation to How widely used in Google Pay in Sweden. However, it did not provide any information in public domains.

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## Apple Pay Statistics: Sweden

Specific information detailing how widely used Apple Pay is in Sweden is unavailable in the public domain. However, Swedish individuals have a preference for the mobile payment application Swish, which is used by two-thirds of the population.

### GENERAL OVERVIEW ABOUT MOBILE PAYMENTS IN SWEDEN

• In early 2017, Apple Pay announced that it would initiate a product launch in four nations, namely the United Arab Emirates, Finland, Sweden, and Denmark, before the year ended.
• Apple Pay was officially launched in Sweden on October 23, 2017. The company conducted this move as part of its expansion.
• Apple Pay could be employed with both credit and debit cards from ST1 and Nordea in Sweden and Finland.
• In 2018, Sweden was one of two nations in Europe with the highest proximity of mobile payments, as well as the highest proportion of transactions conducted via cashless methods. Sweden is considered to be a significant industry player and mobile payments in the country are usually utilized to purchase goods in stores and business locations.
• During its launch in Sweden, Nordea Bank was the first financial institution in the nation to promote Apple Pay.
• According to Statista, in 2017, the most popular mobile payment services in Sweden are the following:
• About 75% of mobile payment users preferred Swish.
• Approximately 14% of mobile payment users preferred Paypal Mobile.
• Around 3% of mobile payment users preferred MyWallet.
• About 5% of mobile payment users preferred other mobile payment services.
• Approximately 21% of the respondents did not utilize any mobile payment services.
• Sweden is considered to be one of the most cashless countries in Europe. Therefore, the nation is one of the top countries for the use of mobile payment apps.
• One of the most widely used mobile payment applications in Sweden, Swish, had approximately 5.5 million users in 2017. In 2019, that figure grew to more than 7 million.

### MOBILE PAYMENT USAGE TRENDING IN SWEDEN

• Mobile payment methods, such as Swish, in Sweden are becoming more popular for online shopping.
• As stated by Statista, "To be precise, the share of consumers who used such apps weekly raised from one percent in 2013, to 25 percent as of 2017. There was a particularly big increase from 2015 to 2017, when the share of consumers using mobile payment apps grew by nine percent each year."

### APPLE PAY

• Apple Pay dominated the market in 2018, beating Google Pay and Samsung Pay due to a rise in the number of users.
• Samsung Pay made up around 17% of mobile wallet transactions, while Google Pay comprised 6%. However, Apple Pay accounted for more than two-thirds (77%) mobile wallet transactions.
• According to Anita Solaman, the Director of debit management at Auriemma, the notably high rate of adoption for debit card users may be connected to demographics as Apple customers are typically younger, a group that is more inclined to be users of debit cards.

### GLOBAL APPLE PAY USERS

• In 2016, there were 62 million Apple Pay users, globally.
• According to Statista, in 2017, there were 127 million Apple Pay users, globally.
• In 2018, there were 383 million Apple Pay users, globally.
• As reported by Merchant Machine, in the United Kingdom, around 24% of the mobile payment users utilize Apple Pay.
• According to 9to5mac, "Apple Pay is supported by a limited number of Nordic banks. Clearhaus says that in all it supports 7,500 merchants in 33 countries, with around two-thirds of them in Apple Pay countries."

### RESEARCH STRATEGY:

Our research began by searching for existing information on the number of Apple pay users, Apple Pay payments by volume, and Apple Pay payments by value from articles, news reports, statistic reports, journals, etc. We searched through Statista, Forbes, US Today, US Journal, The New York Times, etc. Using this approach, we found details on the overall/general mobile payment methods available in Sweden. Some articles listed Sweden as one of the top cashless countries in Europe, and the usual payment methods in the nation are mobile and card payments. Since our focus was on the statistical data of users, we did not find the overall/general mobile payment methods available in Sweden helpful.

We then attempted to re-focus the subject and locate data through Apple, Inc. We thought that there was documentation, a company profile (international), or press releases centered on the expansion of Apple Pay to different countries. Also, we believed that Apple, Inc. monitors the performance of Apple Pay in Sweden since its launch in 2017 and published some valuable insights for investors to reference. We tried searching through their website, specifically the Apple Pay section, and try finding relevant data. Information from the Apple Pay web page mostly concerned the service features of the app and no specific information discussing the number of Apple pay users, Apple Pay payments by volume, and Apple Pay payments by value were available. Additionally, we searched for information through Apple, Inc., in general, which did not produce useful results.

Next, we used a triangulation approach by focusing on alternative mobile payment apps available in Sweden. We thought that if we could obtain the total number of mobile payment users, the user shares of the mobile payment app providers available in the country, average Apple Pay payments performed by users, we could calculate the requested data. We explored surveys, polls, market analysis, reliable databases, research studies, and consumer reports for this information. We were expecting to find information from the sources as Apple Pay has been in the market for years now, and we thought that numerous studies were addressing this topic. Unfortunately, there was no available data on the total number of mobile payment users, and we were only able to find global mobile payment users. We believed the information we were seeking was dependent on each other. Therefore, a triangulation approach would fail if there was one data point missing.

While we were unable to provide statistics showing how widely used Apple Pay is in Sweden, including the number of Apple pay users, Apple Pay payments by volume, and Apple Pay payments by value, we presented a general overview of mobile payment apps in the country, global mobile payment apps, and Apple Pay in Sweden. Moreover, we provided the information we gathered from Statista, and NBC News as it is essential to the request.

We assumed that the reason for the unavailability of data focused on Apple Pay is that it just recently launched in Sweden. Due to the popularity of cashless payment in Sweden before Apple Pay's arrival, the Swedish were already using other mobile payment apps, such as Swish. Information from articles, market research reports, and industry analyses on Apple Pay in Sweden, specifically about its users, have not been published yet because Apple Pay is a new entrant to the Swedish mobile payment market, although there is a large amount of Apple/IOS users in the country.
Part
09
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Part
09

## Digital Banking: Sweden

Of people age 16 to 74 in Sweden, 86% use digital banking. Additionally, most people in Sweden use mobile apps to access digital banking.

### INDICATORS OF HOW COMMON DIGITAL BANKING IN SWEDEN

• According to Eurostat, Sweden is known as the fourth most common country that uses digital banking among EU member states.
• While only 51% of adult Europeans use digital banking, 86% of people aged 16 to 74 in Sweden are using digital banking.
• Based on a 2018 report by Copenhagen Economics, the Swedish banking sector is one of the most digitized sectors in Europe.
• Copenhagen Economics also reported that Sweden is in the top three among the top European countries in digital banking readiness index with 55 points, alongside Denmark and Netherlands with the same index value in 2016.
• Digital banking allows Swedish banks to reduce operational costs
• Digital banking has also made banking easier for the average Swedish customers in terms of costs and having several bank accounts.
• According to SPGlobal, "Sweden is among the world's leading countries in the diffusion and use of digital technology, delivering on the country's national digital strategy.
• SPGlobal also believes that "Swedish banks are well-equipped to cope with the challenges of digitization, thanks to lean structures and cost efficiency, and innovation through cooperation among leading banks and the government has proven successful against disruption."
• As Sweden is gradually evolving into "a cashless society," Swedish banks need to speed up the pace of innovations in the digital banking market.
• The banking sector in Sweden started to transform into online and digital interactions since a decade ago, in response to customer preference alteration
• Based on a 2017 survey by MasterCard, 56% of respondents have a positive attitude toward the digitization of banking.
• The majority of respondents also mentioned that high availability, time-saving, and simple and easy to use are among the biggest advantages of digital banking.
• Based on the same survey, the majority of respondents also stated that the most important criteria for using digital banking are convenience, security, and safety.

### HOW PEOPLE ACCESS DIGITAL BANKING

• According to SPGlobal, mobile banking users are increasingly using checking accounts.
• Based on a chart by SPGlobal, there are more than 130 million logins in mobile banking.
• Meanwhile, there are only 60 million logins for internet banking.
• With the 21% growth between 2016 and 2018, Sweden is ranked the second fastest-growing market in global mobile banking usage as a proportion of online consumers.
• Globaldata also reveals that mobile banking is increasingly being used to make transactions in Sweden, with more than 16 million transactions on 2018 Q3.

### RESEARCH STRATEGY

We began this research for the number of digital banking users in Sweden by looking through databases such as Eurostat. We found the percentage of people using digital banking aged 16 to 74 from several European countries, including Sweden. Then, to get more detailed information about how common digital banking is in Sweden, we searched for some news, articles, reports, and surveys. Based on the information from those sources, we leveraged some useful points indicating the use of digital banking in Sweden. To get any useful information regarding how people in Sweden accessing digital banking, we searched for some data from SPGlobal and Globaldata. From those sources, we leveraged some requested data related to how people in Sweden access digital banking.
Part
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Part
10

## Digital Banking By Industry: Sweden

According to di.se, the Swedish banking sector is far behind when compared to other European countries in terms of digital banking services.

### DIGITAL BANKING SERVICES — SWEDEN

•  Klarna is one of Europe's largest banks, located in Sweden. The company's main line of business is providing digital payment services to e-commerce businesses.
• Klarna handles 40% of all Swedish online transactions.
•  iZettle is a Swedish E-Money Institution.
• The company provides small businesses with digital banking services.
• POS and general digital transactions are some of the services it offers.
• The company was bought by PayPal in 2018.
• According to di.se, the Swedish banking sector is far behind when compared to other European countries in terms of digital banking services.
• According to another report by spglobal.com, Sweden is among the world's leading countries in terms of industrial use of digital technologies.
• The biggest Swedish industries in terms of the number of companies include services industry, agriculture, forestry, fishing, law, economics, science and technology, manufacturing, retail, and construction.

### RESEARCH STRATEGY

Despite a comprehensive search, we were unable to determine which of the industries in Sweden have seen the highest uptake of digital banking services. We began by examining local and international industry-specific publications to locate insights and mentions regarding industries that have most embraced digital business banking services in Sweden. Dlapiper.com, konsumentverket.se, regeringen.se, and affarsvarlden.se are some of the sources that we looked into. This search attempt proved to be futile because we only found extraneous data. However, we did find a report that stated Swedish digital banking services are not very developed when compared to other European countries.

Following this, we decided to identify the biggest industries in Sweden and see if they utilize digital business banking services extensively. We took this approach because the biggest industries in the country will likely have the highest demand for digital banking services such as wireless fund transfers. Local publications such as tillvaxtverket.se were scanned. There, we were able to find a list of companies. Later, we also searched Swedish industry reports and analyses that focus on each of the identified top industries. To find industry analyses, we searched local industry analysis sites such as gupea.ub.gu.se and triglyf.se. But, this did not return any substantial data.

Subsequently, we searched reports on digital banking market in Sweden, hoping to find segmentation of increase in demand by industries and provide it as a proxy. To find market reports, we searched various relevant market research sites such as spglobal.com and swedishbankers.se. There, we only found reports on the problems, opportunities, and weaknesses the digital banking market faces. While many reports focused on the digital marking market in Sweden, none provided data concerning industries that have shown to increase demand for digital banking services. The closest we were able to get this way was a report that stated Sweden is among the world's leading countries in the diffusion and use of digital technology across industries.

Next, we searched for reports on fintech usage by industries in Sweden. Fintech is defined as "technology that aims to improve delivery and use of financial services". Our goal was to use the information on fintech as a proxy, that is, list the industries using fintech the most as industries that have had the highest uptake of digital business banking services in Sweden. Sources such as swefintech.se, fintechbaltic.com, and various third-party publications we looked into for this purpose. But, this proved to be fruitless.

As our last resort, we decided to identify key players in the fintech industry by revenue in Sweden and look into their business and financial filings to find information on where they have seen the biggest increase of customers, or transactions, in which business areas. Our search returned no available list that sorts the biggest Swedish fintech companies by revenue. Nevertheless, we located a list of biggest fintech companies in the region, including the country of Sweden and searched their business reports in order to find relevant insights. We also searched annual reports of companies such as Klarna and iZettle but couldn't detect insights regarding industries in Sweden that use digital business banking services.
Part
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Part
11

## Challenger Digital Banks: Sweden

After thorough research, we were unable to determine the top challenger digital banks that offer banking services to businesses in Sweden. However, we were able to identify that the top challenger digital banks that offer banking services to businesses in Sweden include Lunar Way, N26, and Revolut.

### #1. LUNAR WAY

• Website: Lunar Way
• "Lunar Way Business is everything you need for your business all in one place. You get an account, card, fixed pricing, and features to handle your finances. Everything so you can spend your time on what really matters — your business."
• "We've made it simple and fast for you to handle your business's finances so you can focus on what you do best."
• "Experience how simple banking should be".
• "Whether you are a consultant, freelancer or entrepreneur."
• Lunar Way was launched in Sweden in 2018.
• Lunar Way is headquartered in Aarhus, Denmark.

### #2. N26

• Website: N26
• "N26 Business is the free bank account for freelancers and the self-employed. Earn 0.1% cashback on all purchases you make, and enjoy free card payments worldwide."
• "You don’t have to deposit a certain amount or meet earning threshold requirements, so you can open an account even if you’re just starting out."
• "#client, #office, #bizness… create your own personal hashtags and attach them to your transactions to organize them better."
• "The N26 online business bank account uses artificial intelligence to automatically categorize your spending. Forget clunky spreadsheets—it’s all there in a clear overview in the app."
• N26 entered Sweden market in 2018.
• N26 is headquartered in Berlin, Germany.

### #3. REVOLUT

• Website: Revolut
• "A global business current account for easy international payments, with prepaid business cards and an Open API."
• "Transfer money to any other Revolut account (business or personal) instantly and for free. Save on transfer fees when you make payments to businesses around the world."
• "Payment approval lets your team raise payments that need to be approved. Bulk payments allow you to make up to 1,000 payments with a single click. Scheduled payments allow you to, well, schedule payments!"
• "Our Open API allows you to seamlessly integrate your Revolut business account into your workflow. Use it to automate cross-border business payments, send payouts to clients or employees and monitor transactions according to your business’ needs."
• According to the company's website, Revolut is operational in Sweden.
• Revolut is registered in England and Wales.

### RESEARCH STRATEGY:

The top challenger digital banks that offer banking services to businesses in Sweden was not available in the public domain. One of the probable reasons for the unavailability of such information could be that there are very limited challenger banks providing services to businesses in Sweden. It could also be possible that since most of the companies identified have entered the Sweden market recently, limited information is available on their market penetration in Sweden.

We started the research by directly searching for any industry reports and market studies on the Sweden challenger banks for businesses market. The idea here was to find any report specific to Sweden since such reports usually provide the names of leading players in the industry. However, no such specific report could be found published by leading market research firms including but not limited to Deloitte, KPMG, MarketsandMarkets, Transparency Market Research and Global Market Insights. Most of the reports found using this strategy were either on the overall European market and global market and none of the reports provided any specific challenger banks from Sweden.

Next, we started to search for publicly available lists of all the challenger banks in Sweden. The idea here was to conduct an exhaustive search through such companies that offer services to businesses and find their market penetration data to rank them as the top in Sweden. We came across numerous lists published by Corporate Finance Institute, Educba, etc, that only provided information on top banks in Sweden. However, both the lists only mentioned traditional banks and none of the lists provided any names of challenger banks in Sweden.

We then started searching for leading challenger banks in Europe. The idea here was to find any names of challenger banks based in Sweden. We came across numerous lists published by Venture Radar, Fintech Futures, etc. However, none of the lists provided any names of companies headquartered in Sweden. Most of the challenger banks found using this strategy primarily focused only on consumer banking such as Sbanken, Ferratum Money and Instabank.

As a last resort, we started to search through all the European companies to find any company that has established operations in Sweden as well in various websites such as Fintech News, Penser, Finextra, TechCrunch, VentureBeat. After an exhaustive search through all the companies found earlier, we were able to find three companies namely Lunar Way, N26 and Revolut that provided services to business and are operational in Sweden.

Thereby, using the above-mentioned strategies, we were able to identify three companies in total namely Lunar Way, N26 and Revolut that provided services to businesses in Sweden. However, due to the unavailability of any existing market study and the companies being relatively new in Sweden, no information could be found on the companies’ market penetration in Sweden.
Part
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Part
12

## English Usage: Sweden

The population of Swedish people that speaks English is 5,430,317. The population of Polish people that speaks English is 7,546,680.

### ENGLISH AS A FIRST OR SECOND LANGUAGE IN SWEDEN OR POLAND

• From statistics of people who speak Swedish and English in Sweden, it was reported that Swedish is the first and primary language with 92.72% of people speaking it.
• While English has a 53.97% usage in Sweden.
• From statistics of people who speak Polish and English in Poland, it was reported that Polish is the primary language with 95.15% of people speaking it.
• While English has only a 19.85% usage in Poland.
• The population of Sweden is 10,061,733 million as of Friday, August 16, 2019. This statistic is based on the latest United Nations estimates.
• The population of Poland is 38,018,544 million as of Friday, August 16, 2019. These statistics is based on the latest United Nations estimates.

### ENGLISH USED FOR BUSINESSES PURPOSES IN POLAND AND SWEDEN

• The use of spoken English is on the rise, especially with the younger generation in Poland.
• The country is a “strong, dynamic economy and a gateway to emerging markets of Eastern Europe,” and there are over “300 flights a week between the UK and Poland.”
• The CEE region which Poland is a member country “has widespread use of English as the business language.”
• The Swedish business culture can be different when compared to other countries, but the use of English is still prevalent in Swedish businesses. However, it is always advisable to learn as much Swedish when interacting with people within the country.
• Business meetings can still be held with the use English language due to the exemplary implementation of English in most of the country’s educational levels.

### RESEARCH STRATEGY

To find the statistics of the use of the English language in Sweden and Poland, we utilized various statistical database sites. We found a statistical website that discussed the statistics of Swedish and Polish people that speak English. We then decided to look for the population of both countries to approximate the number of people that speak English. The calculations can be found below.

Additionally, we also found surveys that studied the prevalence of the use of English words in magazines and shows in Poland and Sweden. We used this source as a reference for the usage of the English language in the media of both Poland and Sweden.

### CALCULATIONS

The Population of Sweden that speaks English=10,061,733*53.97%=5,430,317 Swedish people Speak English.
The Population of Poland that speaks English=38,018,544*19.85%=7,546,680 Polish people speak English.
Sources
Sources