If you’re planning a trip to Iceland, you might be wondering:

“Do they use Euros?”

The answer is no.

Iceland has its own currency, called the Icelandic Króna, and understanding how money works before you travel can save you both time and money.

The good news is that paying for things in Iceland is incredibly easy, and in many cases, you may hardly use cash at all.

Here’s everything you need to know.

---

What Currency Does Iceland Use?

The official currency of Iceland is the:

Icelandic Króna

Currency code:

ISK

You’ll often see prices written like this:

• 990 ISK
• 2,490 ISK
• 12,900 ISK

Don’t panic—the numbers look much bigger than they actually are!

---

Can You Use Euros?

No.

Some tourist businesses may occasionally accept Euros, but you should never rely on it.

You’ll almost always receive change in Icelandic Króna, and the exchange rate is unlikely to be favourable.

It’s much better to pay in ISK using your bank card.

---

Should You Exchange Money Before You Travel?

In our opinion…

No.

We’ve travelled around Iceland several times and have never felt the need to exchange cash before arriving.

Almost everywhere accepts card payments.

---

Can You Pay by Card?

Absolutely.

In fact, Iceland is one of the most cashless countries in the world.

We’ve used our debit and credit cards for almost everything, including:

• Coffee
• Petrol
• Supermarkets
• Restaurants
• Parking
• Campsites
• Attractions
• Souvenirs

Even very small purchases can usually be paid for by card.

---

Do You Need Cash?

Very rarely.

It’s worth carrying a small amount of Icelandic Króna if it makes you feel more comfortable, but many visitors complete their entire trip without ever using cash.

We’ve personally found card payments accepted virtually everywhere we’ve visited.

---

Is Contactless Accepted?

Yes.

Contactless payments are widely accepted throughout Iceland.

Apple Pay, Google Pay and other mobile payment methods also work in most places.

Paying is usually quick and hassle-free.

---

Should You Pay in GBP or ISK?

If a card machine asks whether you’d like to pay in:

• British Pounds (GBP)
• Icelandic Króna (ISK)

Always choose:

Icelandic Króna (ISK)

This avoids something called Dynamic Currency Conversion (DCC).

When you choose GBP, the retailer sets the exchange rate—and it’s often much worse than the rate offered by your bank or card provider.

Choosing ISK almost always gives you a better deal.

---

Using ATMs

If you do need cash, ATMs are easy to find in:

• Reykjavík
• Akureyri
• Selfoss
• Vík
• Egilsstaðir
• Ísafjörður

Most accept international debit and credit cards.

---

Budgeting in Iceland

Prices can look surprisingly high because of the large numbers.

For example:

• Coffee – around 700–900 ISK
• Burger meal – around 3,000–4,500 ISK
• Petrol – priced per litre in ISK
• Supermarket snacks – usually a few hundred ISK each

After a day or two, you’ll quickly get used to reading Icelandic prices.

---

Bank Cards That Work Well

Most UK travellers use:

• Visa
• Mastercard

These are accepted almost everywhere.

Before travelling, it’s worth checking whether your bank charges foreign transaction fees.

Some travel cards offer fee-free spending abroad, which can save money over the course of your trip.

---

Mobile Payments

We regularly use:

• Apple Pay
• Google Pay

Both worked perfectly throughout our trips around Iceland.

It’s always sensible to carry a physical bank card as a backup, just in case.

---

Stay Connected

Having mobile data makes checking exchange rates, online banking and travel apps much easier.

We always use Saily eSIM, which activates before we land in Iceland.

📱 Save 10% with Saily here:

https://go.saily.site/aff_c?offer_id=101&aff_id=15717

---

Getting Around Iceland

If you’re exploring beyond Reykjavík, hiring a car gives you the freedom to see Iceland at your own pace.

We’ve always had excellent experiences with Blue Car Rental.

🚗 Hire your car here:

https://www.bluecarrental.is/?affiliate=IcelandicAdventure

Planning the Ring Road?

We’d also highly recommend travelling by campervan.

We explored Iceland with CampEasy, and it completely transformed our road trip.

Book through our link and you’ll also receive an exclusive FREE Easy Start Pack.

🚐 Book your CampEasy campervan here:

https://campeasy.com/?tap_a=107011-a856e5&tap_s=8902128-1989f0

---

Frequently Asked Questions

Can I use my UK debit card in Iceland?

Yes.

Visa and Mastercard debit cards are widely accepted across the country.

---

Can I use cash?

Yes—but you probably won’t need to.

Card payments are accepted almost everywhere.

---

Should I exchange money before travelling?

We don’t think it’s necessary unless you simply prefer carrying cash.

---

Is tipping expected?

No.

Tipping isn’t part of Icelandic culture.

Restaurant bills already include service, although you’re welcome to leave something extra if you’ve received exceptional service.

---

Final Thoughts

Managing money in Iceland is refreshingly simple.

You don’t need to carry large amounts of cash, you don’t need to exchange money before travelling, and you’ll find card payments accepted almost everywhere.

Our biggest tip?

Always choose to pay in Icelandic Króna (ISK) rather than pounds if you’re given the option.

It’s a small decision that can save you money throughout your trip.

With your finances sorted, you can focus on what really matters—enjoying Iceland’s incredible waterfalls, glaciers, volcanoes and unforgettable landscapes.

Happy travels!