The local currency in Iceland is the Icelandic króna (ISK). It's recommended to exchange a small amount of currency upon arrival at the airport to cover immediate expenses, as not all shops and restaurants accept foreign currency. ATMs are widely available and accept major credit and debit cards. Credit cards are widely accepted, but it's a good idea to carry some cash for smaller transactions. Mobile payment options like Apple Pay and Google Pay are also becoming more widely accepted in tourist areas.