Denmark one step closer to cashless economy

Businesses to no longer be legally-bound to accept cash

Photo by: Reuters
Photo by: Reuters

Updated Jul 28, 2015

The Danish government proposes to dispose the obligation for selected businesses to accept cash payments.

One of every three Danes prefers MobilePay, a smartphone application for money transactions, moving Denmark closer to a “cashless” economy.

“Society has changed so much that there is no longer a need for requirements on cash payments. Plus, cash has become tremendously expensive to handle due to security reasons,” chamber spokesman Henrik Hytolft told The Local, an online English magazine for Swedish and German audiences.

Retailers such as gas stations, clothing shops and restaurants won’t be obliged to accept payments in cash anymore, if the proposal materialises.   

The proposal aims reducing costs and increasing productivity for the businesses as a part of pre-election package of economic growth measures.

It’s not uncommon for Danes using debit or credit cards for payments as small as a chewing gum.

According Finansraadet, financial institution lobbyist, cashless economy would help businesses to save time and money on items such as security.

However, there are still concerns regarding the fraud, which is doubled in neighbouring Sweden in the last decade.

Danske Bank, biggest of Denmark and owner of the MobilePay, has linked the app with NemID, which is unique for each Dane to prevent the fraud.

If the parliament approves the proposal, businesses will be able to reject cash starting from Jan. 1, 2016.

TRTWorld and agencies