From October 1, consumers in Norway should start to see less friction when trying to pay with cash. Here's what's changing in the country.
Norway is seen by many as a cashless society, with credit cards and Vipps widely used. However, studies suggest that as many as 600,000 Norwegians are not comfortable with digital solutions, for various reasons.
In modern Norway, it's sometimes easy to forget that many people prefer using cash. For instance, since Norway's new banknotes were introduced, I've barely handled them.
I have a few banknotes stashed away for emergencies, but I rarely carry any with me. Personally, I use a debit/credit card, ApplePay, and Norway's mobile payment system Vipps, depending on the scenario.
The government believes that people uncomfortable with digital solutions must have the same opportunity to pay as everyone else. However, in recent years, some outlets have begun to refuse to accept cash.
As such, the government has taken concrete steps to ensure that the right to pay with cash is strengthened.
Stronger Rights for Cash Payers
Back in June, the Norwegian Parliament passed the government’s proposal (read in Norwegian) for amendments to the Financial Agreements Act.
The changes strengthen consumers' right to pay with cash and will make the rules easier to understand and practice for both customers and businesses. The King has decided in the Council of State that the changes will take effect on 1 October, 2024.
“In a digital world, it can be easy to forget that there is a large group of people who are not digital,” said Minister of Justice and Public Security, Emilie Enger Mehl. She also highlighted the importance of cash for Norway's preparedness.
The fact that the rules in the Financial Agreements Act are becoming clearer and easier to practice is something that many have requested for a long time.
“I am pleased that the majority in the Storting clearly supported our proposal to strengthen the right to pay with cash. People should be confident that they can pay when they go to a store, restaurant, or hairdresser,” she added.
Preparedness in Uncertain Times
The Norwegian Directorate for Civil Protection (DSB) recommends that everyone keep some cash on hand, as digital payment solutions are vulnerable to, among other things, cyberattacks from abroad.
“The government takes the country's preparedness seriously. The world around us is becoming increasingly unstable, with war, digital threats, and climate change. We must be prepared for prolonged power outages, system failures, or digital attacks that lead to disruptions in digital payment solutions,” said Mehl.
The government's proposal was passed by a broad majority in the Norwegian Parliament.
The government has also appointed a public committee to examine how to ensure safe and easy payments for everyone in the future. The committee is expected to deliver its report to the Ministry of Finance by mid-November.
“This will be a legislative change that will endure over time, both for the sake of national security and for the individual, so that people who use cash are not excluded from society,” said Mehl.
