Cash was 40% of transactions, 25% of total value in 2012. [1]
Since then, to July 2015, there's been a 25% increase in card payments, but only a 12% increase in total value [2], so smaller things must be being paid for by card.
Contactless cards were only introduced in Denmark in 2015, and payment by mobile phone in 2013 [3].
So yes, it's normal. But it's not the most common form of payment, and I've been asked by a guy selling sausages from a wagon to use a card when I offered cash.
No question, we're quickly moving away from physical Kroner. There's also political and especially business pressure to get rid of them. However, it's not true that they're obsolete or somehow similar to new yen.
I think it's a point worth emphasizing because going cashless is a huge decision, especially the way we're moving towards in Denmark. There's a discussion to be had around it and if we just accept that it's inevitable or has already happened then that kills that discussion before it's even taken place.
Presumably, that works the same way as the people buying cannabis in Christiania — I briefly lived close to Christiania. The cash machines next to the metro station are the only ones where I've ever seen a queue, sometimes 4-5 people waiting at each one!
Forcing everyone to use e-money only has a few drawbacks. There will always be things that you don't want to be associated with - even if prostitution is legal in your country, if you are married you would prefer this transaction to be untraceable, I suppose.
Another possible drawback is that once money is only available through "controlled" sources, you could find yourself subject to redlining (see: http://www.engadget.com/2015/12/02/paypal-square-and-big-ban...).
So while I find e-money convenient and practical, I do not think that society would be "better" if physical money went away.
