Cash remained the most common form of payment in point-of-sale transactions across the euro area during 2022. According to the European Central Bank, it accounted for 59 percent of transactions, a notable drop from 72 percent in 2019 and 79 percent in 2016 as digital and electronic payment methods gained momentum.
The central bank’s latest study on eurozone residents’ attitudes toward various payment options shows that cash is the preferred method for small in-store purchases and person-to-person transfers. Cards, however, are most frequently used for transactions exceeding fifty euros.
About six out of ten consumers regard having cash as an important payment option. They value cash for keeping spending in check, preserving privacy, and ensuring fast settlement of transactions.
Additionally, thirty-seven percent of eurozone residents reported keeping cash outside of bank accounts in their homes, slightly higher than the 34 percent recorded in 2019.
In most countries, the overwhelming majority find it easy to visit an ATM or a bank to withdraw cash.
The rise of electronic payments
On the flip side, the trend toward electronic payments has accelerated, especially since the pandemic, with most consumers now favoring digital methods for everyday transactions.
Online purchases as a share of total daily transactions in the euro area rose from 6 percent in 2019 to 17 percent in 2022.
Card payments in point-of-sale transactions increased by nine percentage points, reaching 34 percent in 2022, and contactless payments now dominate card usage.
Card payments accounted for a higher total transaction amount than cash in 2022, representing 46 percent of the total, compared with cash at 42 percent. This marks a shift from 2016, when cash accounted for 54 percent of the value and cards 39 percent, and from 2019, when cash represented 47 percent and cards 43 percent.
Cards are perceived as faster and easier to use, reducing the need to carry large sums of cash. They are also the preferred method for larger payments and tend to yield a higher residual value payout than cash.
Fabio Panetta, a member of the ECB Executive Board, stated that the ECB is committed to ensuring that consumers can choose how they pay, both now and in the future. He noted strong demand for both cash and digital payments, underscoring a balanced payments landscape.
Data by country
Malta tops the list for cash usage within the euro area, with 77 percent of transactions paid in cash and 18 percent via cards, followed by Slovenia at 73 percent and Austria at 70 percent. Spain ranks lower in cash usage among the larger economies, with 66 percent of purchases paid in cash, 28 percent by card, and 6 percent by apps or other methods.
In contrast, Finland shows one of the lowest shares of cash use, with only 19 percent paid in cash and 70 percent by card, while mobile app payments account for 6 percent. The Netherlands also reports low cash use at 21 percent, with 67 percent paid by card and 10 percent via apps.
When considering transaction value, Malta again records the heaviest reliance on cash at 65 percent, followed by Latvia at 61 percent and Slovenia at 59 percent. Spain sits around the middle with 51 percent cash usage and 37 percent card payments.
A comparison with 2019 shows a general decline in cash use across eurozone countries, with Southern European states showing the sharpest shifts.
Cyprus has seen the largest drop in cash usage in terms of transaction count, followed by Greece and Spain, while Cyprus experiences the strongest drop when considering purchase value. Latvia and Spain also show noticeable decreases.
Denaria, the platform reporting on the ECB study, notes that cash remains one of the most used and preferred payment methods among the public. The platform adds that cash usage remains robust in Spain, where coins and notes are still widely relied upon.
Even amid Covid-era changes, many Europeans continue to use cash when it is stamped correctly, underscoring a persistent preference for tangible money across the region.