Top payment methods in Iceland: A guide on best ways to pay
Wondering what the most popular ways to pay are in Iceland? Explore the top payment options and choose wisely.
Iceland, with a population of around 391 thousand people, has a GDP of approximately 35.31 billion making it the 107th largest economy in the world. The official currency of Iceland is the Icelandic Króna (ISK)
The economy's main drivers are tourism, fishing, and aluminum smelting, powered by abundant renewable energy. Although not an EU member, it is part of the European Economic Area (EEA), which grants it access to the EU's single market.
| Country | Iceland |
|---|---|
| Population | 391 thousand |
| GDP (USD) | 35.31 billion |
| Global Ranking | 107th |
| Currency | Icelandic Króna (ISK) |
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What is the main payment method in Iceland?
Iceland is one of the most card-reliant societies in the world, where debit and credit cards are used for virtually all transactions, regardless of the amount. For paying bills and for online commerce, direct bank transfers are a standard method. Physical cash, the Króna, is rarely used, and many businesses, especially in the capital, do not accept cash at all.
How to pay in Iceland
Each country has its own way of moving money, and choosing the right method can sometimes be difficult. That’s why we have curated the most popular and best payment options for you to use in Iceland.
| Payment Method | Description | Type |
|---|---|---|
| Wise | Wise provides international money transfer services. It is known for offering transparent, low-cost currency exchange rates and fast transfers. Wise uses the mid-market exchange rate and charges a small, upfront fee, making it a cost-effective alternative to traditional banks for sending money abroad. The platform also offers multi-currency accounts, allowing users to hold and manage money in multiple currencies. | Online/In-person |
| Cards (Debit/Credit) | Iceland is a highly cashless society where debit and credit cards are the overwhelmingly dominant payment method. They are accepted for nearly every transaction, no matter how small. | Online/In-person |
| Digital Wallets (Apple Pay, Google Pay) | Mobile wallets are widely supported and used, offering a seamless way to pay with a phone or smartwatch. | Online/In-person |
| Bank Transfers | Online bank transfers are standard for paying bills and for larger transactions. | Online |
| Cash (Króna) | While cash is legal tender, it is very rarely used. Many Icelanders do not carry cash at all, and some places may not have change available. | In-person |
Traveling beyond Iceland? Explore payment methods by country.
Is PayPal available in Iceland?
Yes, PayPal is accepted in Iceland.
Cover all your international travel expenses with the Wise Multi-Currency Card
Whatever you need to buy during your trip, whether it’s a travel adapter, train ticket or an extra bottle of sunscreen, the Wise Multi-Currency Card has you covered.
You can spend like a local in 150+ countries, as this clever contactless card automatically converts currency at the mid-market exchange rate whenever you spend - for just a small conversion fee.
And for extra convenience, you can add your Wise Multi-Currency Card to your Google Wallet or Apple Wallet. Then you can travel even lighter and pay using just your phone, with no need to pack the physical card.
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.