Cash still king in Europe despite digital payment surge, reveals report

By Gloria Methri

Despite the ongoing rise of digital payments, cash remains a significant payment method, especially for smaller transactions and person-to-person exchanges, according to the latest report from the European Central Bank (ECB).

The study, which gauges consumer payment attitudes in the euro area, highlights a steady shift towards digital payments, yet cash holds its ground.

While cash usage at the point of sale has decreased from 59% in 2022 to 52% in 2024, it still accounts for a substantial portion of transactions. In terms of transaction value, cards continue to dominate, accounting for 45% of payments, slightly down from 46% the previous year. Cash, meanwhile, contributes 39% of transaction value, down from 42%, and mobile apps have seen a marked increase, jumping from 4% to 7%.

The increase in digital payments is primarily driven by online shopping, where payments now make up 21% of consumers’ daily transactions by number and 36% by value—up from 17% and 28%, respectively, in 2022. Cards lead the charge in online payments, making up 48% of all transactions, while mobile wallets and apps together account for 29%.

Cash Retains Its Value

The shift toward digital payments aligns with the preferences of consumers, though the report reveals that cash remains a preferred method for many. In 2024, 55% of consumers still prefer to use cards or other cashless methods in stores, a figure unchanged from 2022. However, 22% of consumers continue to prefer paying with cash, and 23% remain indifferent to payment methods. While cards are deemed faster and more convenient, cash is valued for its role in managing expenses and safeguarding privacy.

Despite the growing digital trend, the majority of consumers still value the option to use cash. Sixty-two per cent of respondents consider access to banknotes necessary, an increase from 60% in 2022. Furthermore, 87% of consumers are satisfied with their ability to access some money, although satisfaction has slightly declined since 2022 (down from 89%).

Piero Cipollone, Executive Board member of the ECB, emphasised the importance of preserving consumer choice in payments. “We are dedicated to ensuring secure, efficient, and inclusive payment options. By supporting both cash and the development of a digital euro, we aim to guarantee that people will always have the option to pay with public money, both now and in the future.”

As digital payments continue to gain momentum, the balance between cash and digital methods remains crucial, with many consumers still holding on to their preference for physical currency. The ECB’s commitment to supporting both payment forms underscores the evolving landscape of financial transactions in the euro area.