Payments Snapshot in Sweden - Coronavirus (COVID-19) Sector Impact
The Coronavirus (SARS-CoV-2) outbreak, dubbed COVID-19, is first and foremost a human tragedy, affecting millions of people globally. The contagious Coronavirus, which broke out at the close of 2019, has led to a medical emergency across the world, with the World Health Organization officially declaring the novel Coronavirus a pandemic on March 11, 2020.
Sweden’s softer lockdown approach and other government measures were able to reduce the pandemic’s impact, resulting in an anticipated gradual recovery in the second half of 2020. The revival in economy will benefit the payments industry as well.
In response to the economic fallout of the COVID-19 outbreak, the Swedish government announced a SEK300bn ($32.1bn) stimulus package on March 16, 2020. The package includes temporary lay-off provisions that allow employers to reduce their employees’ working hours but still pay up to 90% of their usual salary, capped at SEK44,000 ($4,710.27) per month. Under this, the government contributes up to 75% of the wage costs for the reduced work hours. As part of the package, companies are also allowed to defer their VAT and other tax payments for up to 12 months.
This report focuses on the impact of the coronavirus outbreak on both the economyand the cards and payments industry in Sweden. Based on our proprietary datasets, the snapshotprovides a detailed comparison between pre-COVID-19 forecasts andrevised forecasts of total payment card, debit card, and credit and charge card transactions by value and volume. It also offers information on measures taken by the government to combat coronavirus.
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