New Rules Disrupt Norway’s Progress Toward Becoming The First Cashless Economy

Norway has been progressing toward becoming the world’s first cashless economy, but these efforts hit a major roadblock with the country’s Parliament passing new rules. 

Norway’s Stores Must Not Discriminate Against Cash Users

The new rules now oblige shops in the country to accept cash payments in addition to cards, mobile, and other payment options. The rules were put into place despite the fact that only around 3% of the country’s population is paying for their shopping with cash, while others have adopted cashless alternatives.

Norway’s central bank released the figures in a survey, saying that the country’s cash users are growing more and more frustrated by the stores’ “cash not accepted here” posters which can now be found in many of Norway’s retail premises.

The stores have found it easier to just deal with electronic payments, and the local consumers seem to prefer this method as well, or at least, the majority do. Even so, the authorities believe that eliminating cash would put those who still use it at a disadvantage, effectively forcing them to use other types of payments.

As a result, a new amendment to the Central Bank Act was added, promoted by the Government and the Norges Bank. It clarified that consumers have the right to pay with cash up to an amount of 20,000 kroner. 

Businesses Must Start Accepting Cash Again

The amendment says: “In sales premises where a business regularly sells goods or services to consumers, the consumer shall be offered the option to pay with legal tender if it is possible to pay for the goods or services with other payment solutions. If the business has available change, it must also offer to provide change in connection with the payment, unless there is a clear discrepancy between the banknote offered as payment and the amount to be paid.”

Businesses are no longer allowed to ignore cash as a result of the new rule, and the government said that it will enforce fines against those who wilfully or negligently violate the rule. In other words, they must start accepting cash as a payment option again, regardless of their preference.

Commenting on the matter, the country’s Minister of Justice and Public Security, Emilie Enger Mehl, stated that in a digital world, it can be easy to forget that there is a large group of people who are not digital.

She added that cash remains an important emergency preparedness for society, and that the regulations have been too unclear on the matter until now. “People should be confident that they will be able to pay when they go to the store, to a restaurant or to the hairdresser.”