Sweden is a world leader in digital payments, where only about a tenth of in-store purchases are made with cash. But the convenience of digital payments must be supported by strong security. Businesses need payment systems that protect against fraud, meet the standards of BankID and the revised Payment Services Directive (PSD2), and still deliver a positive checkout experience. Businesses that manage secure transactions build better customer relationships and achieve higher conversion rates.

Below, we’ll explain what secure online payments really mean for Swedish businesses, how secure transactions work, common fraud risks, and the best ways to protect your business against them.

What’s in this article?

• What are secure online payments?
  
• How do secure online payments work?
  
• What payment fraud risks should Swedish businesses watch for?
  
• How can businesses protect against payment fraud?
  
• What are safe payment methods in Sweden?
  
• How do secure payments increase conversion rates?
  
• What should Swedish businesses look for in a payment solution?
  
• How Stripe Payments can help
  

What are secure online payments?

Secure online payments (“osäkra onlinebetalningar” in Swedish) are transactions built on layers of protection that keep customer data private and stop fraud before it happens.

• Encryption: Secure Sockets Layer (SSL) developed into Transport Layer Security (TLS). TLS turns sensitive details such as card numbers into unreadable data so it’s useless if intercepted. Many modern systems also use tokenization, which replaces real card data with a random code.

• Authentication: Under the EU’s PSD2 data privacy rules, online card payments in Sweden use Strong Customer Authentication (SCA). Authentication protocols include 3D Secure (3DS), which uses a quick BankID or text messaging (SMS) check to prove the buyer is the real owner of the card.

• Compliance: Providers and businesses must meet the Payment Card Industry Data Security Standard (PCI DSS) for handling card data and follow the EU’s General Data Protection Regulation (GDPR) rules for protecting personal information.

Together, these technical and legal safeguards let customers pay confidently, while businesses know that transactions are protected from end to end.

How do secure online payments work?

Secure payments on the internet (“säkra onlinebetalningar” in Swedish) can happen in seconds, but every step is important.

After a customer types in their details, TLS encrypts card data so it can’t be read by anyone in transit. Some businesses use embedded payment fields from their payment provider so sensitive data never enters the business’s servers. It can be replaced by a token, a stand-in that can’t be traced back to the real card number.

Next, the payment request moves through the processor and card network to the issuing bank, where SCA often applies. In Sweden, a quick BankID check or one-time code via 3DS is a common method.

Fraud detection systems scan for suspicious patterns. When all checks are complete, the bank releases the authorization and funds move securely to the business.

What payment fraud risks should Swedish businesses watch for?

Sweden’s shift to nearly cashless commerce has made life easier for shoppers, but fraud remains a real risk. While payment systems can be highly secure, digital channels open up new ways for criminals to exploit gaps:

• Card fraud: This is the most common threat in the EU. Stolen card details are used for unauthorized online purchases, which results in chargebacks and lost inventory for businesses. “Friendly fraud,” which is when a customer disputes a legitimate charge to get a refund, is another costly issue.

• Phishing and social engineering: Criminals pose as banks, retailers, or even your own staff to trick customers into signing fraudulent payments. The Swedish Financial Supervisory Authority reported that these authorization frauds increased by 12% in Sweden from 2023–2024, even as card fraud declined slightly. This shows that criminals increasingly target individuals directly. Phishing can also happen via SMS, a phenomenon known as “smishing.”

• Identity misuse: Stolen personal data is used to open accounts or order goods on credit. This is especially common in invoice or “pay later” transactions.

• Account takeovers: Fraudulent actors break into saved payment accounts on ecommerce sites and make purchases that look legitimate.

Swedish businesses that accept online payments face these risks, especially during high-traffic periods (e.g., Black Friday) when criminals know systems are under pressure. Once you understand how fraud happens, you can design your payment process to be more secure and stay alert to new fraud methods.

How can businesses protect against payment fraud?

Fraud prevention is a system that combines technology, process, and awareness.

Here’s what that means in practice:

• Strong authentication: Every online card payment should go through 3DS, which triggers authentication through BankID or an SMS code under the EU’s PSD2 rules. If you offer “pay later” or invoice options, verify new customers’ identities the same way.

• Transaction monitoring: Look for peaks in declined payments, mismatched billing and shipping countries, or sudden bursts of refund requests. AI-based fraud detection systems like Stripe Radar can do this for you and automatically flag suspicious activity.

• Threat responses: Know who investigates fraud alerts, how to pause orders, and how to respond to chargebacks quickly and with evidence.

• Training and education: Fraudulent actors often rely more on social manipulation than on code. Remind employees and shoppers that no legitimate company or bank will ever ask for a BankID code or card number via phone or email.

• System updates: Use role-based access for staff, and patch your ecommerce plug-ins as soon as updates drop. Fraudulent actors exploit the path of least resistance. Don’t give them one.

Sweden’s regulatory environment helps secure your payments: PSD2 enforces authentication and the GDPR governs data privacy.

What are safe payment methods in Sweden?

Fast, digital payments are the norm in Sweden, but some methods offer stronger protection than others.

Here’s how common payment methods compare:

• Swish: By the end of 2024, more than 345,000 businesses and nearly 9 million individuals were using Swish. It’s backed by Sweden’s major banks and powered by mobile BankID, which can verify transactions with biometrics. It’s also low-risk for businesses, since funds move directly between accounts and transactions can’t be reversed through chargebacks.

• Card payments with 3DS: Stolen card details are useless when customers have to confirm purchases via BankID or a one-time code. Digital wallets like Apple Pay and Google Pay add another layer by replacing real card data with encrypted tokens.

• Direct bank payments: Transferring funds directly from bank to bank bypasses the card transaction process, which involves processors, issuers, and networks. Direct payments mitigate chargeback risks and delayed settlement issues.

How do secure payments increase conversion rates?

When Swedish shoppers know they can pay securely online (“betala säkert på nätet” in Swedish), they might be inclined to complete more checkouts.

Visible trust signals (e.g., TLS padlocks, BankID prompts, familiar logos such as Swish and Visa) tell customers their data is protected. A 2025 study found that 19% of online shoppers abandon a cart if they don’t feel safe giving a site their card details.

SCA, via 3DS and BankID, can also boost legitimate approval rates. Although the data is limited, a UK report showed that SCA resulted in about 2,000 fewer cases of online card fraud per month. Payments that meet PSD2 requirements are far less likely to be declined by banks, which means more successful transactions and fewer false declines that can frustrate real customers.

Finally, when fraud prevention is effective, you save time and resources by avoiding chargebacks and disputes. The right kind of security builds trust, reduces friction, and gives every legitimate customer a smoother path to payment.

What should Swedish businesses look for in a payment solution?

A good payment solution, or “säker betallösning,” should make security feel effortless for you and your customers.

Look for the following:

• Compliance and protection: Choose a provider that’s PCI Level 1 certified and automatically encrypts or tokenizes all card data. That means you never store sensitive information yourself.

• SCA: In Sweden, this means BankID verification through 3DS for card payments, with support for all major local methods, such as Swish, invoice, and “pay later” options, as well as digital wallets like Apple Pay and Google Pay.

• Built-in fraud detection: Ideally, built-in fraud detection is powered by machine learning that adapts to new threats in real time. You’ll want a clean application programming interface (API) or hosted checkout, localized language and currency support, and clear reporting tools.

• Easier integration and strong support: A provider with responsive local support and prebuilt integrations for major Swedish ecommerce platforms can save you hours of setup and maintenance while ensuring full compliance with the reporting rules of the Swedish Tax Agency.

Finally, think of the long term. The best secure payment solutions, or “säkra betallösningar,” scale with your business—online and in-store—and keep pace with new payment regulations so you don’t have to.

How Stripe Payments can help

Stripe Payments provides a unified, global payment solution that helps any business—from scaling startups to global enterprises—accept payments online, in person, and around the world.

Stripe Payments can help you:

• Optimize your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment UIs, access to 125+ payment methods, and Link, a wallet built by Stripe.

• Expand to new markets faster: Reach customers worldwide and reduce the complexity and cost of multicurrency management with cross-border payment options, available in 195 countries across 135+ currencies.

• Unify payments in person and online: Build a unified commerce experience across online and in-person channels to personalize interactions, reward loyalty, and grow revenue.

• Improve payment performance: Increase revenue with a range of customizable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorization rates.

• Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% uptime and industry-leading reliability.

Learn more about how Stripe Payments can power your online and in-person payments, or get started today.