Is it better to use cash or card in Portugal?

Going on a trip to Portugal soon? You might already be getting ready and working out your travel budget. However, your own spending habits aren’t the only ones you should take into consideration.

Portuguese citizens mainly use cash, though cards are also widely accepted. On the other hand, despite being a modern EU country, you won’t be able to completely rely on digital payments. In this article we’ll go into more detail to help answer the question of which is more convenient - cash or card in Portugal?

We’ll also show you a cost-effective way to handle your finances in Portugal with the Wise card.

How cash-centric is Portugal?

Over 70 percent of Portuguese citizens use physical money at points of sale. However, only a couple of years ago, this number stood at 86 percent.¹ So, although Portugal is still very much a cash-centric country, things might change and cards might become the new norm soon.

Even though cards are becoming growingly popular, it’s still convenient to keep some cash on you. Card terminal machines don’t always work and there’s a chance you won’t even find one if you’re going to the Portuguese Countryside.

Cash etiquette in Portugal

It’s not mandatory to tip in Portugal, but the gesture will be appreciated. It’s also not unusual to at least round up the bill so you don’t get a lot of change in coins.

Tips are not expected, but it’s nice to show appreciation for the quality of service. The usual amount is up to 10 percent of the bill, but there aren’t any strict rules.²

When paying for a small bill in cash, try not to use big denominations. This is especially important in taxis and cafés, since the recipient might not always have time to go find some change.

Cash or card in Portugal - the comparison

We’ve listed some common situations where you’ll be paying for things in Portugal. Here’s whether you’ll be able to pay by card, in cash or both:

Payment for…	Card 💳	Cash💶
🚕 Taxis	Usually (in bigger cities)	Yes
🏪 Convenience stores	Usually (in bigger cities)	Yes
🚌 Public transport	Depends on the transport (in Lisbon, yes)³	Yes
🛍 Open-air markets	No	Yes, often preferred
🥗 Tascas	Sometimes	Yes

Using your card in Portugal at an ATM

There are plenty of ATMs in Portugal and you shouldn’t have an issue locating one near you.

The Multibanco network of ATMs is very popular. Not only can you use them to get money, but also to buy cinema tickets or make transfers.

The daily withdrawal limit at Portuguese ATMs is usually €400. You usually can’t get it at once, since there’s a €200 limit per transaction. Most ATMs charge withdrawal fees, but your home bank can charge you too. There are both international and local banks in Portugal, so you’ll easily find one that suits you.

Will my UK debit card work in Portugal?

International cards are accepted in Portugal, so you can use your UK card for both payments and withdrawals.

If you just want to bring a prepaid card with you, you can also use the Wise card in Portugal. It comes in physical and digital form, for extra security.

Learn more about the Wise card 💳

Can I use my UK credit card in Portugal?

You absolutely can! Any place that takes cards will also accept your UK credit card. Just don’t rely on it completely and carry some cash as well.

Reasons to use cash in Portugal

Portuguese locals prefer cash payments and they’re accepted everywhere. Some small family-owned restaurants or businesses might not even have card terminals to begin with. If you plan on travelling outside of bigger cities such as Lisbon or Porto, cashless payments might not be supported there at all.

Also, cash will come in handy for leaving tips. When you tip in cash, you’re making sure that the specific person that served you receives the money. It’s appropriate to leave cash tips in taxis, tascas, hotels or when you’re on a guided tour.

Finally, don’t miss out on the local open-air markets or various street vendors just because you didn’t bring cash. You should try to experience Portugal through the eyes of the locals. Using cash most of the time is the first step!

Reasons to use credit or debit cards in Portugal

The main reason for using payment cards in Portugal is your safety. Tourist areas are usually full of pickpockets and it’s easy to get distracted in a foreign country. Even if someone takes your card, you can easily block it and save all of your money.

However, it’s still strongly recommended to carry at least some euros in cash, even if it’s just coins.

Are contactless card payments common in Portugal?

Contactless payments are very common in big Portuguese cities. Residents of Lisbon can even pay for public transport by tapping their cards, so they’re the norm in the capital.³ However, it’s not as popular in the Portuguese countryside.

Your Wise card can also be used for contactless payments in Portugal. If you don’t want to carry cards with you, you can get the Wise virtual card- it’s the same card, but virtual.

Other payment methods in Portugal

Besides traditional credit and debit cards, other payment methods are available in Portugal.

Mobile payment⁴

Portuguese citizens use popular mobile payment options such as Apple Pay, Google Pay or PayPal. Businesses in large cities mostly accept them, but it’s better to ask in advance. However, the most popular digital wallet is Multibanco’s MB Way.

Multibanco is a national system which connects over 25 Portuguese banks and it’s the most popular payment method in the country. MB Way is the digital version of this. Unfortunately, a Portuguese bank account is required in order to use it, so it’s not available to tourists.

The Wise virtual card is a great digital option. It has all the benefits of a regular Wise card, but it exists in your phone only. You can freeze your Wise virtual card after every transaction, so top-notch security is guaranteed.

What is the best way to pay in Portugal: cash or card?

If you’ll be travelling to a popular spot, such as Lisbon or Porto, you can use whichever is more convenient for you. Most places will accept cards or some other type of cashless payment. But even though big cities are very card-friendly, it’s good to have at least some change on you.

If you have to choose one or the other, choose cash. The Portuguese prefer it, so that would be your safest choice. Bring it with you if you’re travelling to smaller towns or the countryside, because it’s likely that cash will be your only option.

Spend like a local in Portugal with Wise

Want to spend like a local in 150+ countries, including Portugal, without worrying about exchange rates and hidden fees? The Wise card might be just the thing you’re looking for.

The Wise card can be used for any international payments, including accommodation costs and daily expenses. It automatically converts the currency at the mid-market exchange rate with only a small, transparent currency conversion fee*.

You can also use it to easily withdraw euros from the ATMs in Portugal.

Spend like a local with Wise 💳

Cash or card in Portugal - FAQs

To summarise, here are some of the most frequent questions about using cash or cards in Portugal.

Is it better to buy Euros in the UK or in Portugal?

There’s no need to buy euros in the UK. You can exchange them once you arrive or have Wise automatically do it for you.

How cashless is Portugal?

Not at all! Even though cards are widely accepted, cash is still the primary payment method.

Can I use my UK debit card in Portugal?

Yes, your UK cards are all accepted in Portugal.

How can I avoid foreign transaction fees in Portugal?

You can use cash or pay with your Wise card.

Do taxis in Portugal take cash?

Yes, all taxis in Portugal accept cash. It’s harder to find one that takes cards.

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Sources used for this article:

1. Statista - Stats on cash usage in Portugal from 2019 to 2023
2. Caxton - travel money in Portugal
3. Metropolitano de Lisboa - details on contactless payments on Lisbon Metro
4. Pay.com - payment methods in Portugal

Sources last checked on date: 10-Apr-2024