VAT refund in Denmark: A complete guide to tax-free shopping in Denmark for tourists
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Is it better to use cash or card in Denmark?
If you’re planning a visit to Denmark, you're probably finalising your travel plans and sorting out your packing. Another important consideration is planning your travel budget and doing some research. Specifically, taking the time to understand the differences in financial habits between the UK and Denmark.
Debit cards remain the leading payment option in Denmark, but digital wallets and mobile payment apps are also on the rise. Even though statistics show that you can go fully contactless, different payment methods are better in certain situations. We’ll go into more detail to help answer the question - Is it better to use cash or card in Denmark?
We’ll also show you a cost-effective way to manage your spending in Denmark. For any international purchases, whether online or in person, you can rely on the Wise card. You can even withdraw cash like a local for low fees* at the mid-market exchange rate.
How cash-centric is Denmark?1
The use of cash in Denmark is steadily declining year after year. At the moment, it accounts for only around eight percent of all in-store payments. Instead, debit cards are the number one payment method among the Danish.
Digital wallets are also on the rise in Denmark, both global and local ones. Along with different mobile payment apps, cash is certainly becoming secondary. However, this doesn’t mean that it will be entirely replaced in the future.
Cash etiquette in Denmark2
Tipping is not required or even expected in Denmark, since a service fee is usually included in the prices. However, it’s certainly appreciated as a nice gesture for good service.
The tip amount depends on the circumstances. If you want to leave a tip in a restaurant, the usual amount is 5-10% of the bill or simply some leftover change. It’s a nice way of letting your server know that the service was exceptionally good, but there’s no obligation to leave it.
Cash or card in Denmark - the comparison
We’ve listed some situations where you’ll be paying for things in Denmark. Here’s whether you’ll be able to pay by card, in cash or both:
| Paying for… | Card💳 | Cash 👛 |
|---|---|---|
| 🚕 Taxis3 | Yes | Yes |
| 🏪 Convenience stores4 | Usually, but not always for small purchases | Yes |
| ☕Coffee shops | Usually, yes | Yes |
| 🚌 Public transport5 | Usually, yes | Yes |
| 🍽️ Restaurants | Usually, yes | Yes |
Using your card in Denmark at an ATM
There’s roughly around 2,200 ATMs in Denmark. This small figure is likely due to Denmark gradually transitioning into a cashless society. Besides banks, you can find ATMs in shopping malls, supermarkets and big touristy streets.6
When it comes to limits, they’re usually between 2,000 and 3,000 Danish kroner per transaction. Many Danish banks, such as Danske Bank or Nykredit Bank, are more accommodating to international cardholders.4
It’s always recommended to choose to withdraw in the local currency without a currency conversion. This will mean you get a better rate, as the conversion will be done by your bank or card provider instead of the ATM provider.
Check out the latest GBP to DKK conversion rates below:
Will my UK debit card work in Denmark?
Yes, you can use UK-issued debit cards on your trip to Denmark. However, keep in mind that additional fees will apply for using your card abroad.
Can I use my UK credit card in Denmark?
Yes, you can use your UK-issued credit card in Denmark, as long as you go to a place that accepts cards.
Reasons to use cash in Denmark
Although debit cards and contactless methods in general are more popular at the moment, you shouldn’t give up on cash. You most likely won’t find a place that doesn’t take cash and it’s the most suitable option for small purchases.
Also, cash can be a better option when buying from local street vendors or going off the beaten path. You could even miss out on some authentic experiences if you don’t have at least some cash on you. Finally, in case you like leaving cash tips, it’s good to keep some Danish kroner on you.
Reasons to use credit or debit cards in Denmark
Cards are widely accepted in Denmark and still continue to grow in popularity. If you plan on visiting big cities such as Copenhagen, you likely won’t have to use cash at all. It’s also much more convenient to tap your card instead of dealing with leftover change you won’t be able to use back home.
Also, even though Denmark is a safe country, carrying large amounts of cash around makes you a target for pickpockets. Relying on cards might help make your trip safer.
Are contactless card payments common in Denmark?
Yes, they’re a very common option in Denmark. The limit for contactless card payments in Denmark is 350 Danish kroner, after which you’ll need to provide your PIN.7
Your Wise card can also be used for contactless payments in Denmark. If you don’t want to carry cards with you, you can get the Wise virtual card with the same features.
Other payment methods in Denmark
Besides traditional credit and debit cards, other payment methods are also available in Denmark.
Mobile payment6
Digital wallets are used frequently in Denmark. Some well-known wallet apps, such as Google Wallet, Apple Pay and PayPal, are also popular here. However, there are even some local e-wallet options, such as MobilePay.
MobilePay is an app used mainly in Denmark, but also in Finland. It’s used both in-store and online, with some supermarket chains integrating it directly into their own shopping apps. Around 60% of the country’s population uses this app.
For an additional layer of security, you could add your Wise virtual card to your wallet. It has all the benefits of a regular Wise card, but it exists in your phone only. You can freeze your Wise virtual card after every transaction, too.
Dankort6
Dankort is the number one payment method in the country. This is Denmark’s national debit card.
It's integrated with the national bank and it’s used by millions of people across Denmark. Most versions of this card are combined with Visa or Mastercard and it can be used both online and in-store.
Buy now pay later options (BNPL)8
Buy now pay later services are gaining traction in Denmark. These options allow consumers to purchase products or services immediately and pay for them over time. A popular BNPL company in Denmark is ViaBill.
With ViaBill, you can split a purchase into up to 24 instalments. There aren’t any rates and charges included, so your instalments are interest-free. This service also has no subscription fees.
What is the best way to pay in Denmark: cash or card?
If you have to pick only of the two, it would be best to rely on cards during your stay in Denmark. Since you’ll probably visit big cities or tourist hotspots, you’ll find that cards are accepted everywhere. And since the Danish use them frequently, you’ll blend in with the locals seamlessly.
Still, the best choice would be using both cash and cards. Each option has its advantages and you could make the most of them. Cards are convenient and quick, plus very popular in Denmark. However, cash is sometimes necessary, especially for some small purchases and for leaving cash tips.
Spend like a local in Denmark with the Wise card
Want to spend like a local in Denmark without worrying about exchange rates and hidden fees? The Wise card might be just the option you were looking for.
Use the Wise card for international payments, from your accommodation costs to daily expenses. It automatically converts your pounds at the mid-market exchange rate with only a small, transparent currency conversion fee*.
You can also use it to easily withdraw cash from the ATMs in Denmark. Each month, you can make 2 withdrawals of up to 200 GBP for free. After that, there is a charge of 0.5 GBP per withdrawal. There’s also a 1.75% fee on any amount you withdraw above 200 GBP. Keep in mind, however, that additional charges may occur from independent ATM networks.
Spend like a local with Wise 💳
Cash or card in Denmark - FAQs
What is the most used payment method in Denmark?
Debit cards are the number one payment method in Denmark at the moment.
Are Euros widely accepted in Denmark?9
Euros are often accepted in major Danish cities, but at a higher rate.
Can I use my UK debit card in Denmark?
Yes, you can use your UK-issued debit card in Denmark.
Do taxis in Denmark take credit cards?
Most taxis in Denmark accept credit cards, but it's a good idea to ask in advance to be sure.
How much cash can I take to Denmark?10
If you plan to bring more than €10,000 into Denmark, you must inform the Danish Customs Agency.
Please see the Terms of Use for your region or visit Wise fees & pricing for the most up-to-date information on pricing and fees.
Sources used:
1. Statista - biggest POS payment methods in Denmark
2. Monito - tipping in Denmark
3. Visit Denmark - taxis in Denmark
4. N26 - using your debit card in Denmark
5. Visit Copenhagen - Danish public transport tickets and prices
6. Pay.com - top payment methods in Denmark
7. Eurocard - contactless limit in Denmark
8. Quickpay - ViaBill
9. S Money - currency in Denmark
10. The Danish Customs Agency - travelling with large amounts of cash
Sources last checked on date: 09-Oct-2024
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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