💰 This page covers what you need on the ground: card acceptance by neighborhood, transport payments, ATM locations, and day trips. For ATM bank comparisons, DCC warnings, and general Iceland currency tips:
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Order ISK → CEI Currency ExchangeDo You Need Cash in Reykjavik?
No. Reykjavik may be the most cashless city in the world. Cards are accepted everywhere, including food trucks, public restrooms, flea markets, and even buskers sometimes have card readers. You can genuinely leave your wallet's cash compartment empty for the entire trip.
The Only Times Cash Might Help
Kolaportid flea market: a few second-hand vendors still prefer cash, though most now accept cards. Strætó bus without the app: if your phone is dead, you need exact ISK coins. Tipping: not customary in Iceland; prices include service. Reykjavik is even more cashless than Copenhagen.
Where Cards Work Fine
Absolutely everywhere. Restaurants, cafes, bars, museums, hot dog stands, whale watching tours, the Strætó bus (via app), taxis, gas stations on the Ring Road, and even remote countryside stops. Iceland is the closest thing to a fully cashless society.
Paying by Card in Reykjavik
Visa and Mastercard work universally. Amex is accepted at hotels and larger shops but not everywhere. Contactless payments are the default everywhere.
Laugavegur & Downtown
The main shopping and dining strip. Every restaurant, bar, café, and boutique on Laugavegur, Skólavörðustígur, and Bankastroæti accepts contactless cards. The Hlemmur Matholl food hall takes cards at every stall. Even the famous Baejarins Beztu pylsur hot dog stand accepts cards.
Grandi (Old Harbour)
The harbor district with whale watching operators, the Whales of Iceland museum, and Marshall House galleries. All whale watching companies accept cards for booking and on-site. The Grandi Matholl food hall is fully card-friendly. FlyOver Iceland and the Saga Museum accept cards and online booking.
Hallgrímskirkja Area
The hilltop around the iconic church. The church tower observation deck accepts cards. Nearby cafés like Café Loki and restaurants along Skólavörðustígur all take contactless. The Sun Voyager sculpture viewpoint is free, but the nearby souvenir stands accept cards.
Hlemmur & East Side
The area around the old bus terminal, now a food hall. Bónus supermarket on Laugavegur takes cards (including contactless). Krónan and Hagkaup supermarkets in the eastern neighborhoods are fully card-friendly. The residential streets have neighborhood restaurants and bakeries, all accepting cards.
Laugardalur
The park and pool district east of downtown. Laugardalslaug, the largest geothermal pool in Reykjavik, accepts cards at the entrance (around ISK 1,100). The Reykjavik Zoo and Family Park accept cards. Restaurants along the park accept contactless.
Kolaportid Flea Market
The weekend flea market in the harbor area is the only place in Reykjavik where you might encounter cash-only vendors. Most regular stalls now accept cards, but a few sellers of second-hand goods and dried fish still prefer cash. Bring ISK 2,000–5,000 if you plan to browse thoroughly.
ATMs in Reykjavik
For details on ATM fees and which Icelandic banks work best with foreign cards, see the Iceland guide. Since you rarely need cash here, one small withdrawal is more than enough for a week.
Look for these logos if you need an ATM. Iceland has only three major banks.
Landsbankinn
Íslandsbanki
Arion Bank
Downtown ATMs
Landsbankinn has its main branch and ATM on Austurstroæti, right in the heart of downtown. Íslandsbanki has an ATM on Kirkjustroæti. Arion Bank has machines near Laugavegur. All three banks' ATMs accept Visa and Mastercard and dispense ISK. Always decline the currency conversion offer on screen to get your bank's rate instead.
At the Airport
Keflavík International Airport (KEF) has ATMs in the arrivals hall from both Landsbankinn and Íslandsbanki. Given how card-friendly Iceland is, most visitors skip the ATM entirely and just use their card from the moment they land. The Flybus to Reykjavik accepts cards, as does every taxi and car rental counter.
Paying for the Strætó, Taxis & Airport Transfers
Strætó City Buses
Reykjavik's public bus system is called Strætó. You can pay with the Strætó app (download it and link a credit card) or with exact change in ISK coins. The driver cannot give change and does not accept cards directly. A single ride costs around ISK 550 (about $4 USD). The app allows free transfers within 75 minutes. Routes 1 and 6 are the most useful for tourists, connecting the city center with Laugardalur and the BSI bus terminal.
Airport Transfers
From Keflavík Airport (45 minutes from Reykjavik): the Flybus (operated by Reykjavik Excursions) costs around ISK 3,500 and accepts cards at the airport counter or online. Airport Direct is a competing service at similar prices. Both drop off at the BSI terminal, with hotel drop-off add-ons available. Taxis from KEF to Reykjavik cost around ISK 18,000–22,000 ($130–160 USD) and accept cards.
Taxis & Ride-Hailing
Reykjavik taxis all accept cards. Hreyfill and BSR are the two main taxi companies. There is no Uber or Lyft in Iceland. Taxis are metered and expensive: a short ride across downtown costs ISK 2,000–3,000 ($14–22 USD). Most visitors walk (the city center is very compact) or use the Strætó bus.
Tipping in Reykjavik
The Iceland guide covers this briefly because there is not much to say. Tipping is not part of Icelandic culture.
The Short Version
Restaurants: service is included in the price. You do not need to leave a tip. Some high-end restaurants have a tip line on the card receipt, but leaving it blank is completely normal and expected.
Cafés and bars: no tip expected. Round up if you feel like it.
Tour guides: for multi-hour tours (whale watching, Golden Circle, glacier hikes), ISK 1,000–2,000 per person is a kind gesture but not expected.
Taxis: no tip expected. The meter is the meter.
Prices in Reykjavik
Iceland is one of the most expensive countries in the world. Prices reflect high import costs, high wages, and strong tourism demand.
| Item | Price (ISK) | Price (USD) |
|---|---|---|
| Strætó bus ride | ISK 550 | $4 |
| Pylsur hot dog (Baejarins Beztu) | ISK 590 | $4.30 |
| Latte (downtown cafe) | ISK 700–900 | $5–6.50 |
| Beer (happy hour) | ISK 900–1,200 | $6.50–8.70 |
| Hallgrímskirkja tower | ISK 1,200 | $8.70 |
| Draft beer (bar) | ISK 1,400–2,000 | $10–14 |
| Fish-of-the-day lunch | ISK 3,000–5,000 | $22–36 |
| Flybus (KEF airport) | ISK 3,500 | $25 |
| Dinner (mid-range) | ISK 5,000–8,000 | $36–58 |
| Sky Lagoon | ISK 6,990–11,490 | $51–83 |
| Whale watching | ISK 12,000–15,000 | $87–109 |
| Blue Lagoon | from ISK 12,990 | from $94 |
| Dill tasting menu | ISK 15,000+ | $109+ |
USD estimates based on approximately ISK 138 = $1. Rates fluctuate. Happy hour (3–6 PM) is essential for saving on drinks. Bónus supermarket beer is ISK 400–600.
Day Trips from Reykjavik
Golden Circle (Þingvellir, Geysir, Gullfoss)
The most popular day trip from Reykjavik. All three stops have card-accepting gift shops, cafés, and restrooms. The paid restrooms at Geysir cost ISK 200 and accept contactless cards. Tour operators accept card payment at booking. If you drive yourself, the N1 and Olís gas stations along the route accept cards at the pump (some require chip-and-PIN).
Blue Lagoon & Sky Lagoon
Blue Lagoon (near Keflavík, 40 minutes from Reykjavik) requires advance booking online with a credit card. Once inside, you get a wristband linked to your booking for in-lagoon drink purchases. No cash needed at any point. Sky Lagoon (15 minutes from downtown Reykjavik) works the same way: book online, pay by card, wristband for bar purchases.
Snæfellsnes Peninsula
A long day trip (3+ hours each way) to western Iceland. Small towns like Stykkishólmur and Grundarfjörður have restaurants and shops that accept cards. Gas stations along Route 54 accept cards at the pump. The Vatnshellir lava cave tour accepts card payment on-site. No cash needed, but bring a charged phone for the Strætó app if you plan to bus part of the way.
South Coast (Seljalandsfoss, Skógafoss, Vík)
Waterfalls, black sand beaches, and glacier views. Seljalandsfoss has a card-accepting parking meter (ISK 700). The cafés near Skógafoss and in Vík all accept cards. The Lava Show in Vík accepts card at the door or online. Fuel stations accept cards. No cash needed for the entire route.
Reykjavik Quick Reference
A quick reference for payment options depending on your plans for the day.
| Destination | Cards? | Cash Needed? | Notes |
|---|---|---|---|
| Laugavegur dining | ✅ Everywhere | Not needed | Contactless works at every spot |
| Kolaportid flea market | ✅ Most stalls | ISK 2,000–5,000 | A few vendors still prefer cash |
| Golden Circle tour | ✅ Everywhere | Not needed | Even restrooms take cards |
| Blue Lagoon | ✅ Required | Not needed | Book online, wristband system |
| Whale watching | ✅ At booking | Not needed | Book at Old Harbour offices |
| Strætó bus | ✅ Via app | Exact coins only | Download Strætó app first |
Frequently Asked Questions
Do I need Icelandic króna cash in Reykjavik?
Almost never. Reykjavik is one of the most cashless cities in the world. Cards are accepted everywhere from hot dog stands to public restrooms. Some visitors spend their entire trip without touching a single banknote. The only exception might be a few flea market vendors at Kolaportid on weekends.
Can I use Apple Pay or Google Pay in Reykjavik?
Yes. Contactless payments are the default in Iceland. Virtually every shop, restaurant, café, and even food trucks accept Apple Pay and Google Pay. Iceland was one of the earliest adopters of contactless technology, so coverage is essentially universal in Reykjavik and throughout the country.
How do I pay for the Strætó bus?
Download the Strætó app and link a credit card. You can also pay with exact change in ISK coins on the bus, but the driver cannot give change and does not accept cards directly. The app is the easiest option and allows free transfers within 75 minutes. A single ride costs around ISK 550.
Should I exchange money before arriving in Iceland?
No. There is no practical reason to carry Icelandic króna in advance. Your Visa or Mastercard will work everywhere, and you will get a better exchange rate from your card issuer than from a currency exchange counter. If you want a small amount of cash for peace of mind, withdraw ISK 5,000–10,000 from a Landsbankinn ATM at the airport.
Do I need cash for the Golden Circle?
No. All Golden Circle stops have card-accepting facilities. Gift shops, cafés, and even the paid restrooms at Geysir take cards. Tour buses accept card payment at booking. If you drive yourself, gas stations along the route accept cards at the pump.
Is tipping expected in Reykjavik?
No. Tipping is not part of Icelandic culture. Service charges are included in all prices. Leaving a tip will not offend anyone, but it is genuinely not expected at restaurants, cafés, or for taxi rides. This applies throughout Iceland, not just Reykjavik.
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Country-specific deep dives for Reykjavik: which card to bring, where the no-fee ATMs are at the airport, and how to dodge the local DCC traps.