The new online payment options law – and how it affects you

The use of credit payment options in Sweden has grown in popularity over the last few years. Since the financial crash in 2008, consumer lending in Sweden has increased by 103% – a 7% increase per year on average, according to the Swedish Financial Service Authority*. In the interest of increasing consumer protection and reducing the number of credit purchases, Riksdagen (the Swedish Parliament) has voted in favour of new legislation that comes into effect on July 1, 2020. For e-com merchants and checkout providers, this means adjusting the way debit and credit payment options are presented in the checkout. Trustly is perfectly poised to help you optimise your debit offering.

So, what happens now?

While the new law doesn’t ban consumers from using credit when shopping online, it does encourage them to think twice before buying on credit unnecessarily. This means moving a debit option, where available, to the top of the checkout. 

More specifically;

If your checkout has both credit** and non-credit*** payment options, a non-credit option must be presented as the first payment option. Moreover, a credit option cannot be pre-selected.

If both credit and non-credit options are offered, a credit option cannot be pre-selected in the checkout. 

As of writing, it’s unclear how payment service and checkout providers will tackle the challenge of technically differentiating credit cards from debit cards. What is clear is that these players as well as e-com merchants need to start adapting their checkouts to this new law. 

What’s good for your shoppers is good for you

Encouraging your shoppers to pay with funds they already have ultimately gives them more control and peace-of-mind, which enhances the shopper experience. This is partly why Trustly's debit solution is becoming increasingly popular amongst European e-com shoppers. Our direct bank payments lets consumers pay simply and securely straight from their bank account – without being redirected away from the shop. 

Not only will Trustly help make your new checkout compliant, it’ll ensure you maintain a good user experience. For more on that, read here.

* Report Swedish Consumption Loans, Finansinspektionen, June 13, 2019 
**Credit options typically include invoice (incl. Pay in 14 days without any fees associated) and credit cards.
***Non-credit options typically include debit cards and direct bank payments. 

Contact us if you want to learn more

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