Currency, credit cards and banks

Money and payments in Iceland

Cards are used almost everywhere.

The currency in Iceland is the Icelandic króna (ISK), but you’ll hardly need cash during your visit. Iceland is largely a cashless society, and credit and debit cards are accepted almost everywhere: from restaurants and shops to taxis and public buses.

Foreign currencies are rarely accepted, so it’s best to pay by card. Credit and debit cards are widely used, and contactless payments are common. For larger purchases, you may be asked to use chip and PIN, so make sure you know your PIN.

Tipping is not expected in Iceland, but a cash tip in any currency is always appreciated if you feel the service from your tour guide or server has been exceptional.

Do I need cash?

You may want a small amount of cash for the occasional purchase, but it’s not essential.

If you do use cash, these are the denominations:

• Coins: 1, 5, 10, 50 and 100 kr
• Banknotes: 500, 1,000, 2,000, 5,000 and 10,000 kr

ATMs are easy to find throughout Reykjavík and around the country, so you can withdraw cash if needed.

Getting or exchanging money

If you need Icelandic króna, the easiest option is to withdraw cash from an ATM. ATMs are available throughout Keflavík Airport and across Reykjavík.

A limited currency exchange service is available in the arrivals hall at Keflavík Airport, but most travellers find it simpler (and often better value) to use ATMs instead.

You can also exchange money at Iceland’s main banks, Landsbankinn, Íslandsbanki and Arion Bank. They are typically open 09:00–16:00 on weekdays.

Not part of the eurozone

Although Iceland is part of the Schengen Area, it is not in the EU and does not use the euro — so you’ll be using Icelandic króna during your stay.

A brief note on the króna

The word króna means “crown”, just like in other Nordic countries. Iceland has used its own currency since the late 19th century — and today, it’s part of a modern, seamless payment experience for visitors.