Norway’s journey towards becoming one of the world’s first cashless economies has encountered a setback after new legislation was introduced by Parliament, requiring retailers to accept cash payments alongside mobile and card options.
According to a survey by Norway’s central bank, only three percent of consumers use cash for their purchases. The bank notes that many consumers are frustrated by the frequent ‘cash not accepted here’ signs displayed in retail stores.
The recent amendment to the Central Bank Act, pushed by the Government and the Norges Bank, establishes consumers’ rights to pay in cash for transactions up to 20,000 kroner. It states: “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 change available, 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 due.”
The Government has committed to enforcing penalties against businesses that “willfully or negligently violate the rules.”
Minister of Justice and Public Security Emilie Enger Mehl emphasizes, “In a digital world, it can be easy to forget that there is a large group of people who are not digital. Cash is also an important part of our emergency preparedness. The regulations have been too unclear. People should be confident that they will be able to pay when they go to the store, to a restaurant, or to the hairdresser.”