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Government proposal would let Danish retailers reject cash payment

The measure would save retailers considerable expense related to cash-handling and security, the government claims.

May 11, 2015

Last week, the government of Denmark released its package of proposed actions to spur the country's economic growth. Among the measures — allowing Danish businesses to reject cash payment as of Jan. 1, 2016.

The proposal is subject to approval by the Danish Parliament. However, a Reuters article said, it is not likely to be rejected. With Parliamant's OK, retailers could demand that all payments be made via plastic card or smartphone app.

Reportedly, one-third of the population already uses Danske Bank's MobilePay smartphone app for retail transactions and person-to-person payments. Indeed, Nordic countries have been among the Europe's most aggressive promoters of a so-called "cashless society."

The government claims that going cashless saves retailers costs related to cash-handling and security. But the equation might not be so simple: In Sweden, electronic fraud has nearly doubled since the country went virtually cashless, Reuters said.