Digital Payments Surge in Europe, But Cash Remains a Key Player

Despite the rapid adoption of digital payment solutions across Europe, cash still accounts for the majority of point-of-sale (POS) transactions, according to a recent study by the European Central Bank (ECB).

Payment Trends at POS

  • Cash Usage:
    • Accounts for 52% of POS transactions by number, down from 59% in 2022.
    • By value, cash transactions now represent 39%, a decline from 42%.
  • Card Usage:
    • Dominates in terms of value, with a 45% share, slightly reduced from 46% in 2022.
  • Mobile Apps:
    • Witnessing rapid growth, now representing 7% of POS payments, up from 4% two years ago.

Online Payment Growth

  • Increased Usage:
    • Online payments now account for 21% of daily payment transactions by number (up from 17%) and 36% by value (up from 28%).
    • Cards dominate, responsible for 48% of online payments, followed by electronic means like wallets and mobile apps (29%).

Consumer Payment Preferences

  • Non-Cash Preference:
    • 55% of Europeans prefer cards and other non-cash options in shops.
    • 22% still prefer cash, while 23% remain neutral.
  • Key Advantages:
    • Cards are considered faster and easier to use.
    • Cash is seen as helpful for budgeting and privacy protection.

Cash Accessibility and Sentiment

  • Consumer Importance:
    • 62% of Europeans value cash as a payment option.
    • 87% report satisfaction with their ease of access to cash through ATMs and banks.

ECB’s Vision

  • Piero Cipollone, ECB executive board member, highlighted the dual focus on cash and innovation:

    “We are dedicated to ensuring secure, efficient, and inclusive payment options. By supporting both cash and the development of a digital euro, we want to guarantee people can always choose to pay with public money, now and in the future.”

     

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