Concerns grow over potential cash monopoly in Finland as Loomis expands dominance

In Finland, the declining use of cash is leading to concerns that cash management services may soon be dominated by a single company, according to experts interviewed by Yle. Currently, three firms handle cash transportation and processing: Swedish company Loomis, Norwegian-owned Nokas, and Reila, a subsidiary of SOK. As cash usage continues to drop, Simo Hiilamo, Director of Advocacy at the Retailers’ Association, warns of the risk of a cash monopoly, a trend already seen in parts of Europe. For instance, Loomis has been the sole provider of cash processing and transportation in Sweden for the past four years.

Kai Lindström, head of SOK’s payment services, suggests that a monopoly is likely, which could increase costs for consumers as cash management service expenses would ultimately be passed on to them. Ninety percent of cash automats in Finland belong to Loomis, and this dominance is expected to grow. By the end of the month, 500 Nokas automated cash machines will be removed from S-Retail stores, replaced with Loomis’s Otto machines.

The market for cash services in Finland is heavily influenced by the volume of cash transactions, which have notably decreased since the 2000s. When Loomis acquired Otto cash machines from Nordea, OP, and Danske Bank in 2020, it raised competition concerns that led to a regulatory review. The Finnish Competition and Consumer Authority approved the acquisition but imposed conditions to protect competition.

The Finnish central bank is actively discussing the implications of a potential monopoly with other central banks, emphasizing the need for access to cash across the country. A sufficient number of cash withdrawal points must remain conveniently located for consumers.