No, you don’t need cash in Iceland. It is close to being a cashless society. That’s the short and simple answer. You will hardly find any place in Iceland nowadays that does not accept card payments. On the contrary, you may well find places that do not accept cash, e.g. the latest supermarket in the capital area, Prís in Kópavogur.
Card is king in Iceland
Even though electronic payments are the default payment method in most of the world today, cash remains surprisingly common in some countries, e.g. Germany and Portugal, where it is still recommended to carry cash as an alternative payment method because some restaurants and shops will not accept electronic payments.
Iceland is more similar to other Nordic countries in this regard, so card is king. The norm is to be cashless and contactless. The shift away from cash was already evident around 25 years ago and it is one part of rapid adoption of new technologies, something that has been a part of Icelandic culture for the past few decades at least.
Are there no exceptions where you need cash?
Sure, but they are few and far between. I have seen tomatoes for sale in West Iceland at a stall close to Deildartunguhver hot spring, where they had a box to pay for tomato bags in cash. The flea market Kolaportið in downtown Reykjavík might also ask you to pay in cash at some of the stalls. There is an ATM in the building, so you are on the safe side even if you don’t have cash when you enter.
- See also: How to Get Money in Iceland
