Norway mandates cash acceptance for businesses amid digital payment concerns

Starting today, businesses, restaurants, and hairdressers in Norway are required to accept cash payments if customers request it. This new regulation follows a parliamentary vote in June, which approved the government’s proposed amendments to the Financial Agreements Act, coming into effect on October 1.

Research indicates that approximately 600,000 Norwegians remain non-digital in their payment methods. The government emphasizes the importance of ensuring that these groups have equal means to pay as everyone else. Justice and Public Security Minister Emilie Enger Mehl stated, “In a digital world, it can be easy to forget that there is a large group of people who are not digital.” She noted that the previous regulations were unclear, leading to uncertainty for customers wishing to pay in cash.

Mehl highlighted the significance of cash for societal preparedness, especially for those without digital access. On the flip side, some industry leaders express skepticism about the new law. Rune Aale-Hansen, CEO of Regnskap Norge, warned that expanding cash usage could facilitate criminal activities, as cash transactions are untraceable.

Jarle Hammerstad from the business association Virke believes the concerns about the inability to pay with cash are overstated, arguing that the majority of businesses accept cash, and the move seems somewhat regressive.

Meanwhile, the Directorate for Society Security and Emergency Preparedness advises individuals to keep some cash on hand, citing vulnerabilities in digital payment systems to cyberattacks. Mehl reiterated the government’s commitment to maintaining societal readiness in light of global instability due to war, digital threats, and climate change. She stressed the need to prepare for potential long-term power outages or systemic failures affecting digital payment solutions.