Europe’s Nordic countries are at the forefront of transitioning to a cashless society, with Norway, Finland, and Denmark taking the lead, according to a recent analysis.
The study, conducted by Norwegian finance site Finansplassen, evaluated how prepared various European countries are to shift away from cash transactions, using data from the World Bank, Eurostat, and other sources.
The analysis looked at factors like the number of ATMs and payment terminals available per 100,000 people, the spending limits for contactless payments, and the proportion of the population using online banking. Fewer ATMs and a higher number of payment terminals indicate a greater reliance on electronic payments. Norway was found to be the most prepared for a cashless future, with one of the lowest numbers of ATMs and around 96% of its population using online banking.
Finland and Denmark followed closely behind, with slightly more ATMs but similar rates of online banking adoption. The Netherlands, Sweden, Iceland, Estonia, Lithuania, Cyprus, and Switzerland completed the top 10 countries in terms of readiness for a cashless society. In contrast, Armenia, Georgia, and Germany were identified as the least prepared for this transition.
Olle Pettersson, a personal finance expert at Finansplassen, explained that the Nordic countries find cashless systems particularly useful due to challenges like sparse population density and harsh weather conditions, which can make traditional payments more difficult. These countries also benefit from high trust in public institutions and smaller populations, which make it easier to introduce new policies.
In 2016, Norway’s largest bank, DNB, even called for the abolition of cash due to concerns about illegal activities such as money laundering. Around the same time, mobile payment systems like Vipps MobilePay gained popularity, with 11.5 million users across Norway, Finland, and Denmark. However, recent moves by the Norwegian Parliament have sought to ensure that cash remains available as a payment option, passing legislation in October to make it easier for citizens to use cash when necessary.
