In an effort to accelerate the migration to the cashless society, the Government of Denmark has announced that restaurants and some other retailers will be given the option to refuse cash and coins as a method of payment. Part of a pre-election package of economic measures, at the start of 2016 restaurants, clothing stores and gas stations could all refuse cash but other retailers like Grocery stores, post offices, places selling prescription drugs, doctors and dentists would still be required to accept cash.
Commenting on the plan which still needs parliamentary approval the Danish Chamber of Commerce said in a statement,
“It will make it cheaper and easier for many companies, if in the future they can choose to receive payment via card or mobile.”
Citing the considerable financial and administrative burden on retailers when accepting cash, the Government believes that the cashless society can spur future economic growth.
While the selection of only a few retailing segments to be allowed to refuse cash will limit the impact of the move, the decision represents one of the strongest policy decisions in favor of the cashless society to ever be launched. Furthermore with European interchange caps making the cost of card acceptance essentially nothing, retailers can further embrace the move and save time and money by not accepting cash.
Overview by Tristan Hugo-Webb, Associate Director, Global Payments Advisory Service
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