Swish Introduces Joint Blocking Feature to Strengthen Fraud Protection Across Banks

Swish is a Swedish electronic payment solution. It has now introduced a joint blocking feature to limit and prevent fraud.

The most popular electronic payment service in Sweden, Swish, has now been granted the right to introduce a joint blocking feature. The aim of the joint blocking function is to prevent fraud, and it will allow banks to block users from the entire Swish system. This makes it much more difficult for fraudsters to exploit the service and provides quicker responses when red flags occur regarding these criminals.

Joint Blocking Feature

Those misusing the service will not just be blocked from using their own bank. It will spread out across the entire Swish system. This can occur when those operating the system believe it is being used for criminal purposes or in a way that poses security risks to other customers, banks or Swish itself.

Swish continues to dominate Sweden’s mobile payment landscape, and is used by millions for everyday transactions across businesses and e-commerce. Its new joint blocking feature further strengthens protection against fraud, giving banks a coordinated tool to prevent misuse and reinforce trust in the cashless economy. Experts, including those at bedrageri.info, note that this robust system also benefits licensed Swedish online casinos, where secure and fast Swish payments ensure consumer safety and confidence in digital transactions.

Urban Höglund, the CEO of Swish, stated that the “misuse of Swish in criminal contexts is something we take very seriously. With a joint blocking function, we can act more quickly and in a more coordinated way to exclude those who abuse the service, while at the same time making Swish even safer for millions of users.”

What is Swish?

Those outside of Sweden may not be familiar with Swish. Launched in 2012, it was created by a consortium of six major banks and the Central Bank of Sweden. Its aim was to provide a real-time money transfer solution through an application. Those using it need a Swedish bank account number and a national ID.

Its original purpose had been for the transfer of funds between individuals. However, it soon proved so popular that it was used by small organisations, mainly micro traders and religious organisations, in lieu of a card reader. Companies must now pay a small fee for using it, though for individuals, it is free. It is a member of the European Mobile Payment Systems Association. The company behind it is Getswish.

Clearing Operations Authorisation Also Granted

The Finansinspektionen, Sweden’s Financial Supervisory Authority, has also recently granted Swish the ability to conduct clearing activities under the Payments Clearing and Settlement Act.

Payments and clearing are the processes by which a payment initiation, such as the swipe of a card or hitting send on an app, is processed to the final settlement. In between this, there are numerous steps. They can involve validating transactions, exchanging information, recording transfers and risk mitigation.

This is a complex process, and as a result, it must now come under the supervision of the Finansinspektionen. This relates specifically to the obligations of clearing companies. It has previously been designated by the Riksbank as a company of importance in the payment system infrastructure.

The Swedish Payments Market

Sweden is unique in that most of its payment market is entirely digital. The use of cash is continuing to fall according to the Riksbank, with card payments being the most used method of payment and mobile payments quickly catching up. Many small businesses have even stopped accepting cash, with many forgoing it over the last five years due to security issues. However, around two-thirds of small businesses asked in a recent survey by the bank do accept cash.

The same survey said that seven out of ten companies accept both Swish and cash. Many of these prefer payment methods by Swish or card, as it minimises the administrative work they have to do and provides a quicker and smoother transfer. However, there is a current Cash Inquiry which proposes that companies which sell essential goods should be expected to take cash.

Global Payment Preferences

There is now a wide range of payment methods available across the globe. These range from old-fashioned but still popular cash, all the way to digital wallets and cryptocurrencies. While this has provided even more choice for consumers, it can be hard work for businesses that need to choose the right ones for their customers.

Across the globe, around 70% of all transactions are now made by bank transfers, digital wallets, and cash payment vouchers. This is a huge change from the days of handing over coins and notes. Of these, digital wallets are the most used at 53% share of transactions. Credit cards come second at 20%, with debit and prepaid cards reaching to 12%. All of this shows just how important these changes have been.