Cash payments decline in Denmark, contingency use rises

Danes are increasingly using cash less frequently for payments.

In 2025, cash payments accounted for 9 percent of transactions in physical commerce and 12 percent for payments between individuals.

This trend places Denmark among European countries with the lowest cash usage, a direct consequence of ongoing societal digitalisation.

Paradoxically, an increasing number of citizens now hold cash for contingency, with over two-thirds of cash holders viewing it as an emergency payment method.

This aligns with Danmarks Nationalbank's recommendations, leading 41 percent of citizens in 2025 to hold over kr.

1,000. The number of ATMs continues to fall, reflecting reduced withdrawals, yet ATMs remain necessary nationwide.

This is particularly relevant as new banknotes are introduced in 2028–2029, which will invalidate the current 2009 series after a transition period.

The recall of the 1,000-krone banknote and older series contributed to a decline in total cash in circulation from 2.6 percent of GDP in 2023 to 1.7 percent in 2025, without significantly impacting the average size of cash payments in retail trade.

The declining use of cash in Denmark reflects a broader trend of increasing societal digitalisation, with citizens readily adopting new card and mobile payment solutions.

While Denmark has among the lowest cash usage in Europe, its statutory obligation for shops to accept cash during the daytime means usage remains slightly higher than other Nordic countries.

Danish legislation also limits cash use due to money laundering risks and handling costs, prohibiting retailers from accepting cash payments exceeding kr.

15,000. The recall of the 1,000-krone banknote, part of efforts to ensure secure payments, has led to a decline in total cash in circulation.

Differences in cash use across age groups have narrowed since 2017, as older citizens increasingly adopt digital payment solutions.