Luxembourg in the top 20 countries on the way to abandoning cash

Scandinavia tops the list of countries most ready for the future of cashless payments. A study by Norwegian website Finansplassen found that countries such as Norway, Denmark and Finland have a minimal number of ATMs, a high proportion of the population using online banking and a developing infrastructure for electronic payments.

Norway ranks first in readiness for a cashless future: 96% of the population uses online banking, and services like Vipps MobilePay make transferring money as easy as sending a text message. Cash payments have almost disappeared in the country, fuelled by initiatives from major banks and the convenience of digital solutions. However, there is another side: in October 2023, the Norwegian parliament passed amendments to simplify the use of cash, emphasising its role in crisis situations.

In Denmark, the share of cash in transactions has fallen to 8% in 2023. The convenience of mobile payments, where customers can always pay the exact amount, has made cash almost unnecessary. Finland, although second to Norway, is also actively promoting online banking and digital services.

Luxembourg ranks 15th in the ranking, ahead of Belgium (16th) and France (19th). Its key features are:

• Bank machines: About 100 per 100,000 adults, significantly higher than in Norway.
• Payment terminals: A record 31,113 terminals per 100,000 adults make the country the leader in electronic payment availability in Europe.
• Online banking: So far, only 71% of residents use online banking, well below the Scandinavian level.

However, Luxembourg remains one of the few EU countries without restrictions on cash payments, but this too is about to change. From 2027, EU countries will introduce a limit: a maximum of €10,000 for transactions between natural and legal persons.