Cash transactions decline in Denmark as digital payments rise, but challenges persist for many citizens

Cash transactions are becoming less common, yet people still use coins and banknotes for payments. According to the latest survey by the National Bank, cash now accounts for 11 percent of all payments, down from 23 percent in 2017. Instead, consumers primarily rely on payment cards and increasingly mobile phones for transactions, according to Marcus Clausen Brock, a payment specialist at Danmarks Nationalbank.

Interestingly, both older and younger individuals occasionally use cash. Contrary to expectations, older adults do not rely on cash significantly more than other age groups, as noted in the survey findings.

However, at least half a million Danes face challenges with digital payment solutions, primarily due to difficulties with passwords, login processes, and the MitID identification system, as explained by Professor Jonas Hedman from CBS. He suggests that the complexity of MitID is a primary issue for users who struggle to understand how it works.

Hedman argues that there is a societal responsibility to redesign MitID and simplify digital platforms to make them more user-friendly for everyone. CBS is currently working on a voice-activated payment app in collaboration with SUMH, an organization for younger individuals with disabilities, a German design firm, and Finans Danmark.

Despite the rise of digital payment methods, physical currency is not expected to disappear entirely. The 1,000-kroner note and all banknotes from the 1944, 1952, 1972, and 1997 series will cease to be valid by the end of May 2025. Yet, Danmarks Nationalbank believes that cash will continue to hold relevance, as it possesses unique attributes that many citizens appreciate, such as its tangibility.