Payment methods in Iceland

Europe

6methods

4banks

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

All payment methods available in this market, sorted by prominence.

PayPal

Global digital wallet and checkout provider with broad e-commerce coverage.

Visa

Visa is the world's largest card network, enabling credit, debit and prepaid card payments online, in-store and at ATMs across virtually every market. In the listed countries Visa is a core internationally accepted scheme alongside local methods.

Mastercard

Mastercard is a leading global card network supporting credit, debit and prepaid card payments online, in-store and at ATMs worldwide. In the listed countries it is a core internationally accepted scheme.

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.

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.

Apple Pay / Google Pay

The major international device-based wallets — Apple Pay, Google Pay and Samsung Pay — have been widely adopted in Kuwait alongside local prepaid cards. These wallets tokenise underlying debit and credit card credentials and are accepted at NFC-enabled point-of-sale terminals and participating online merchants. Their adoption reflects Kuwait's high smartphone penetration and consumer preference for contactless payments.

Featured banks in Iceland

All banks operating in this market, sorted by prominence.

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.