Danish Government Initiates New Proposal for Cashless Society
Denmark has set a proposal that would allow select businesses to reject cash as a mode of payment starting January 2016.
Doctors, dentists, post offices, grocery stores and other essential services are exempted from the program.
Analysts expect the Danish Parliament to move forward with the proposal, as it is part of a pre-election package designed to boost economic growth.
For many financial institutions in the region, the upkeep of cash is a costly practice and has contributed to rising bank service fees. Furthermore, storing, handling and securing large amounts of bills can be a burden for businesses that engage in high volume transactions on a daily basis.
“It will be cheaper and easier for many companies, if in the future they can choose to receive payment via card or mobile,” stated the Danish Chamber of Commerce.
Over 33 percent of the local population has incorporated digital payments with their lifestyle using Danske Bank’s MobilePay smartphone app, which is widely accepted in numerous mainstream establishments. Denmark citizens rely on the platform to pay for a range of items, from a pack of chewing gum to household appliances. The app can also be used to transfer money electronically.
One of the main concerns surrounding the sudden shift is security. Since the rapid adoption of mobile payments, neighboring countries in the area, namely Sweden, has experienced an upswing in fraud and criminal acts related to digital transactions.
In other parts of Europe, the move to efficient, cashless systems is gaining widespread acceptance by businesses and consumers.
“Contactless payments to travel can save our customers time, they don’t need to stop to top-up an Oyster card, or buy a ticket and can benefit from daily and Monday to Sunday capping,” said Shashi Verma, Transport of London’s (TFL) Director of Customer Experience to Reuters.