Payment methods in Iceland
Over 90% of all transactions in Iceland are made with payment cards — one of the world's highest card usage rates
Market takeaways
- Over 90% of all transactions in Iceland are made with payment cards — one of the world's highest card usage rates
- Cash represents just 2.3% of GDP, making Iceland one of the most cashless economies globally
- 78% of Icelanders used credit cards for a recent online purchase; 46% name it their preferred method
- E-commerce revenue was USD 693 million in 2024 with 5-10% annual growth
- Cards hold a 50.2% share of e-commerce transactions; digital wallets growing at 17.95% CAGR
Population
0.38M
Online population
~0.36M (~96%)
B2C e-commerce
~$0.69B (2024 est.)
Banked population
~99%
Credit card population
~90%
E-commerce of total retail
~22%
Payment method breakdown
- Card50%
- E-Wallet30%
- Bank Transfer12%
- Cash5%
- Other3%
Card scheme breakdown
- Visa52%
- Mastercard40%
- American Express6%
- Local Schemes1%
- Other1%
Cross-border e-commerce
Market data coming soon.
Featured payment methods in Iceland
Popular options based on coverage and prominence in this market.
Domestic Instant Payment App (2024)
A new payment application launched in 2024 to enable real-time domestic transfers. Designed to complement the already-mature card infrastructure and provide an account-to-account alternative for consumers and businesses.
PayPal
The third most-used e-commerce payment method, used by 39% of consumers for recent online purchases, with 12% naming it a preferred method. Important for cross-border purchases where ISK currency limits options. Flow: User selects PayPal, a modal or redirect opens. User logs in, confirms funding source, reviews details, authorizes. Control returns to merchant with approved or declined status.
Apple Pay / Google Pay
Digital wallets growing at 17.95% CAGR in Iceland. Supported by all major Icelandic banks. Over one-third of Icelanders have used a digital wallet for an online purchase.
Credit Cards (Visa / Mastercard / Amex)
The primary payment method for both in-store and online shopping. 78% of Icelanders have used a credit card for a recent online purchase, with 46% naming it their preferred method. The Central Bank recorded ISK 79.8 billion in monthly domestic card turnover in February 2024.
Debit Cards
Used by 39% of online shoppers for recent purchases. All major Icelandic banks (Arion Bank, Íslandsbanki, Landsbankinn) issue Visa and Mastercard debit cards. Contactless debit is standard.
All payment methods in Iceland
Discover 5 payment methods from around the world
Featured banks in Iceland
Major institutions operating in this market.
Landsbankinn
Reykjavik, Iceland
Landsbankinn is Iceland's largest bank, offering retail, corporate, and investment banking. It was nationalised during the 2008 financial crisis and has since been partially re-privatised.
Íslandsbanki
Reykjavik, Iceland
Íslandsbanki is Iceland's second-largest bank, providing retail, corporate, and investment banking services. It was listed on the Nasdaq Iceland stock exchange in 2021.
Arion banki
Reykjavik, Iceland
Arion banki is Iceland's third-largest bank, offering retail and corporate banking, financial advisory, and asset management services.
Other Banks — Iceland
Reykjavik, Iceland
Aggregate of all remaining banks in Iceland not individually listed, collectively ~7.0% of domestic banking assets.
