Can I pay taxis in Iceland in cash?

I can confirm Iceland is one of the easiest countries when it comes to taxi payments. I hopped in taxis at Reykjavik harbor and near Hallgrímskirkja, and every single driver had a terminal. Most prefer cards since it saves them handling coins. I didn’t exchange any krona during my trip and never missed it. If you’re used to carrying backup cash elsewhere, in Iceland it really isn’t necessary-taxis and just about every business prefer card transactions.

Using taxis in Iceland was seamless. Every ride I took-from downtown Reykjavik to the Blue Lagoon-was paid with card. The machines worked quickly, and I even used Apple Pay once without issues. I met other travelers who said they didn’t see a single “cash only” taxi in the country. If you do have cash, it’s fine, but you won’t need it for taxis. Iceland is extremely modern in payment systems, and locals rely on cards for almost everything.

I was in Iceland for 10 days and never carried cash. Taxis in Reykjavik and Akureyri all took cards. It was super easy to just tap and go, and drivers didn’t blink an eye. In fact, one driver joked that even he rarely carries physical money anymore. The whole country is built around electronic payments, so taxis are no different. If you’re debating whether to carry cash just for cabs, I’d say don’t bother. A debit or credit card works perfectly.

Iceland is extremely card-friendly, and taxis are no exception. In Reykjavik, I never once paid with cash. Every cab I used had a functioning card terminal, and most accepted contactless and Apple Pay. Even when I went out toward Keflavik Airport late at night, the driver swiped my card without hesitation. Honestly, Iceland is one of those countries where you could almost survive without touching a single krona note during your trip. Cash is hardly ever needed.