Payment habits in Denmark (2024)

FAQs

Payment habits in Denmark? ›

Payment can be made either in cash or with a digital payment solution such as a payment card, mobile phone or via online banking. Today, most payments made by Danes take place digitally – in 2023, this was true for almost 9 out of 10 payments in physical stores.

The Danish payment mix is dominated by cards. Dankort debit cards co-branded with Visa are the most popular.

The average employee in Denmark earns DKK 46,972 per month before taxes. The amount includes pension and is calculated by the so-called standardised hourly earnings translated to a full-time monthly salary. In 2022, Danes had a median net worth of DKK 701,429 after subtracting liabilities from assets.

Card payments are common - and often preferred - in Denmark. Credit and debit cards are widely accepted and in most places you can make contactless payments with your physical card or a wallet like Apple Pay. Having some cash in your pocket can be reassuring, but it's not necessary to carry a lot in most cases.

The 24-year rule

The condition for issuing a residence permit to a spouse or cohabiting partner is that both are over 24 years of age. This is an absolute condition. This rule was introduced for political reasons as there is no political wish to have forced marriages form the basis for family reunification in Denmark.

In Denmark, consumers typically use their payment card or mobile telephone when paying for goods and services.

Danish banknotes and coins are legal tender in Denmark. This means that both citizens and businesses can use cash for payments. However, there are a few specific statutory provisions that restrict the use of Danish banknotes and coins by the payer and the payee.

In Denmark, employees enjoy some of the highest average wages in the world, reflecting both the country's high standard of living and its strong economy. The Danish labor market is characterized by a well-developed collective bargaining system, which ensures employees are compensated fairly for their work.

To be considered in the top 1 percent, one must earn at least 1.9 million kroner annually. Meanwhile, to be part of the wealthiest 10 percent in Denmark, you must earn at least 812,300 kroner per year, while at least 290,900 kroner is required to be in the top half.

While the average salary in Copenhagen is 52,000 Kr per month, a good salary in the city is considered to be around 40,000 Kr before tax. This works out to around 26,000 Kr after tax, and is considered by locals to be the minium one would need to live alone and have additional spending money.

Will Denmark accept US dollars? ›

As we've seen, the official currency in Denmark is DKK. If you carry USD with you on your trip, you'll probably need to exchange it before you can spend. Sometimes when you're away on a trip abroad you'll find that merchants will take payments in a selection of major foreign currencies.

Tipping is not commonplace in Denmark, largely because the responsibility is placed on businesses to pay their employees fairly. Many service workers used to rely heavily on tips for their income, and it was customary for guests to add 15% to their bill, but tipping was officially discontinued in Denmark in 1969.

Denmark is a mostly cashless country, so most shops prefer to accept Dankort or credit cards over cash. In 2015, contactless payments with Dankort became possible. Today, they represent 80% of transactions with this card.

Employees are entitled to an uninterrupted rest period of at least 11 hours for every 24 hours and at least one day rest per week. No more than six workdays are allowed between two rest days.

Relaxed, polite manners are appreciated. Refrain from abundantly complimenting or commenting on anyone's clothing. Never call a Dane a Swede or Norwegian. It is acceptable for a foreign woman to invite a Danish man to dinner, but his wife may come along.

One day off per week, which must be preceded by a daily rest period. There must be no more than 6 days between the 2 days off. Weekly working hours may not exceed an average of 48 hours, including overtime. A night worker may not work more than an average of 8 hours per 24-hour period.

In Denmark, the most popular online payment methods are VISA (Dankort), MasterCard, MobilePay, Trustly (online bank transfers) and PayPal. To be able to accept Dankort cards payments, a card processing solution with access to local Danish banks is required.

Cards are still the most-used payment method, with American Express, Mastercard, Visa as large global card schemes. Even though they're recognized globally, other payment methods like online banking, direct debit, digital wallets, or Buy Now Pay Later (BNPL) are more common elsewhere.

Debit cards have become increasingly popular and widely accepted in Denmark, especially in urban areas and tourist destinations. Many establishments, including restaurants, hotels, and retail stores, have card payment terminals that accept debit cards from major international networks like Visa and Mastercard.

Credit cards. The most common credit card in Copenhagen is VISA, but you should have no problem finding ATMs/cash machines that accept Mastercard and American Express as well. Bring your PIN code. In Copenhagen major credit cards are widely accepted at hotels, stores, cafes and restaurants.