The payment landscape across the Eurozone is undergoing a significant transformation, characterized by a dual trend: the accelerating adoption of digital transaction methods coexisting with the persistent relevance of physical cash. A recent report from the European Central Bank (ECB) highlights this evolving dynamic, revealing a clear shift in consumer payment habits driven by convenience and technological advancements since its prior surveys in 2019 and 2022.
The comprehensive ECB study on consumer payment attitudes (SPACE) illustrates the substantial expansion of digital payments. In 2024, online transactions accounted for 21% of daily payments, marking a notable increase from 17% in 2022. By value, this growth was even more pronounced, reaching 36% compared to 28% previously. Within physical retail environments (Points of Sale or POS), card payments solidified their dominance, constituting 45% of transactions by value. While cash still represented 52% of POS payments by volume, its share has declined from 59% in 2022, underscoring a steady, albeit gradual, migration towards cashless alternatives.
Cash’s Enduring Niche
Despite the overall decline in its transactional volume, cash retains a crucial role in specific payment scenarios. It remains the most frequently used method for low-value purchases and person-to-person (P2P) transactions, accounting for 41% of the latter. For P2P exchanges, mobile applications and cards collectively represent 33% of alternatives, with credit transfers at 9% and instant payments at 6%. The enduring preference for cash is further evidenced by the fact that 62% of consumers still consider access to physical currency ‘important’ or ‘very important,’ highlighting its perceived reliability and broad acceptance in certain contexts.
Consumer Sentiment and Merchant Readiness
Consumer preferences and practical considerations continue to shape payment choices. A significant 58% of respondents expressed concerns regarding the privacy implications of digital payments, a key factor underpinning the continued reliance on cash for some. Access to cash infrastructure remains robust, with 87% of individuals finding ATMs or banks easily accessible, although satisfaction levels have seen a slight decrease. Interestingly, 24% of consumers reported that their preferred payment method is not consistently accepted in physical stores, suggesting a potential friction point in the broader adoption of specific digital solutions and emphasizing the need for merchant adaptability.
Overall, consumer preferences for payment methods have largely stabilized, yet the market continues to evolve. While 55% of consumers favor cards or other cashless options for POS purchases, 22% still explicitly prefer cash, with 23% expressing no clear preference—figures largely consistent with 2022 data. The survey also noted a slight increase in payment account ownership to 93%, though card possession experienced a minor decrease to 92%. These insights from the ECB’s report collectively paint a picture of a dynamic Eurozone payment ecosystem, where digital innovation coexists with deeply entrenched cash habits, necessitating continued strategic development in payment infrastructure and policy to cater to diverse consumer needs and preferences.
Lucas turns raw market data into actionable strategies, spotting trends in a heartbeat. With 9 years managing portfolios, he treats market volatility like a surfer riding big waves—balance and timing are everything. On weekends, Lucas hosts “Bull & Bear Banter” podcasts, showing that finance discussions can be as entertaining as they are informative.