Cash is still the most frequently used means of payment at the point of sale, but its share is continuously dropping based on the latest study on the payment attitudes of consumers within the eurozone, published by the European Central Bank (ECB).
Notably, cash was used for 59% of point-of-sale transactions in 2022, down from 72% in 2019. In most cases, it is the preferred means of payment for small-value transactions in stores and for person-to-person transactions.
A majority (60%) also believe that it is important to have cash as a mode of payment. Consumers see cash as helpful to remain aware of their expenditures, protect their privacy, and enable transactions to be settled instantly.
In general, consumers appear satisfied with their access to cash, with a majority of consumers finding it easy to get to an ATM or a bank to withdraw cash in most nations.
Concurrently, the trend towards electronic means of payments has sped up with the pandemic playing a major role in that and most consumers now prefer using electronic payment methods. The share of online purchases as a percentage of all Euro area daily transactions has surged considerably to stand at 17% in 2022, up from about 6% in 2019.
For purchases at a point of sale, the amount of card payments has grown by 9% to reach 34% in 2022, with contactless payments now making up most of the recorded card payments. Cards are believed to be easier and faster to use and are seen to reduce the need to carry huge amounts of cash. Cards are mostly used as a payment method for bigger payments and account now for a bigger share of payments than cash in value terms.
The executive board member Fabio Panetta said:
“The ECB is committed to ensuring that consumers remain free to choose how to pay, both now and in the future. We are seeing confirmation of strong demand for both cash and digital payments. Our commitment to cash and our ongoing work on a digital euro aims to ensure that paying with public money is always an option.”
