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Norway's cashless economy drive halted by new cash payment rules

Norway's progress to become one of the world's first cashless economy has hit a roadblock under new rules passed by Parliament that oblige shops to accept cash payments alongside other mobile payment and card options.

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Norway's cashless economy drive halted by new cash payment rules

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Currently only three percent of consumers in Norway used cash to pay for their shopping, according to a survey by Norway's central bank. The bank believes many more who do so are frustrated by the proliferation of 'cash not accepted here' posters in Norwegian retail premises.

An recently introduced amendment to the Central Bank Act, promoted by the Government and the Norges Bank, clarifies consumers' right to pay with cash up to an amount of 20,000 kroner: "In sales premises where a business regularly sells goods or services to consumers, the consumer shall be offered the option to pay with legal tender if it is possible to pay for the goods or services with other payment solutions. If the business has available change, it must also offer to provide change in connection with the payment, unless there is a clear discrepancy between the banknote offered as payment and the amount to be paid."

The Government is pledging enforcement of fines against businesses that "willfully or negligently violate the rules".

“In a digital world, it can be easy to forget that there is a large group of people who are not digital,” says Minister of Justice and Public Security Emilie Enger Mehl. “Cash is also an important emergency preparedness for society. The regulations have been too unclear. People should be confident that they will be able to pay when they go to the store, to a restaurant or to the hairdresser.”

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Comments: (2)

Johnny Mnemonic

Johnny Mnemonic ICE Astronomer at Tessier Ashpool SA

"“In a digital world, it can be easy to forget that there is a large group of people who are not digital"


clearly there is not, otherwise shops would not need to be bullied into accepting cash

Robin Setty

Robin Setty Partnerships Lead for banking solutions at ACI Worldwide (EMEA) Limited

The 97% using digital payment methods are doing so because it's convenient.  Cash handling - like anything that becomes less common - is therefore becoming more expensive.  The digital trend is not going to be reversed.  However, as Crowdstrike last summer showed us, a digital-only world is risky.  The key question is 'How to make cash handling cheaper?' 

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