In 2022, 59% of purchases in the eurozone were paid in cash

The central bank, in its latest study on the attitudes of eurozone citizens towards different payment methods, cash is the most widely used means of payment for low value transactions in stores and for person-to-person transactions, as cards are the most commonly used means of payment for transactions over 50 Euros.

The majority (60%) think having cash as a payment option is also important because consumers find cash useful for keeping their spending in check, protecting their privacy and ensuring that transactions are settled promptly.

In addition, 37% of eurozone consumers kept their cash reserves at homeexcluding bank accounts, compared to 34% in 2019

In most countries, the vast majority of consumers find it easy to go to an ATM or bank to withdraw cash.

The rise of electronic payments

On the other hand, research confirms that: The trend towards electronic payment methods has “accelerated with the pandemic” and most consumers now prefer to use electronic payment methods.

Thus, the share of online purchases as a percentage of all daily transactions in the euro area increased from 6% in 2019 to 17% in 2022.

The share of card payments in point-of-sale purchases increased by nine points to 34% in 2022, and contactless payments now make up the majority of card payments.

Special, card payments (46%) accounted for a higher transaction amount than cash payments (42%) in 2022. This contrasts with 54% of the cash transaction amount in 2016 and 47% in 2019, and 39% and 43% respectively for card payments.

This cards are accepted faster and easier to use and reduces the need to carry large amounts of cash. They are also the most widely used payment method for larger amounts and generate a higher payout ratio than cash in terms of residual value.

“The ECB is committed to ensuring that consumers are free to choose how they pay, both now and in the future,” said Fabio Panetta, Member of the ECB Executive Board. “We are seeing confirmation of strong demand for both cash and digital payments,” he added.

Data by country

The biggest role played by cash in payments among Eurozone countries, Malta, where 77% of transactions are paid in cash and 18% by card, was ahead of Slovenia (73%) and Austria (70%), while Spain ranked fifth.66% of purchases were paid in cash, 28% by card and only 6% by apps or other formulas.

On the other hand, countries where citizens are less likely to pay for their purchases in cash are Finland with only 19% of cash payments and 70% by card and 6% with mobile apps; The Netherlands was 21% cash and 67% by card, while payment via apps was 10%.

Based on the value of transactions made, Malta also has the highest weight of cash (65%) compared to 26% for card payments, ahead of Latvia (61%) and Slovenia (59%). Spain was the fifth country with the largest share of cash (51%), while cards reached 37%.

Compared to 2019, Cash use has declined in most eurozone countriesIt records the greatest intensity of tuning in Southern European countries.

Thus, Cyprus (-23 percentage points), followed by Greece and Spain (-18 points), are the countries with the lowest cash weight in the number of transactions, while Cyprus has the highest decreases when the value of purchases is taken into account. (-23 points), Latvia (-19 points) and Spain (-14 points).

In the view of the Denaria platform, ECB research shows that cash remains one of the most used and preferred means of payment by the public. “Cash is in force, and people want it and use it often,” he told Europa Press. “Spain is also one of the countries where coins and notes are used the most.”

“Despite the research being still under the influence of Covid, when cash is stamped incorrectly, the result is clear: a significant proportion of Europeans continue to use cash,” they argue.