Euro Area: Cash is the Most Frequently Used Payment Method

The Prevalence and Resilience of CashMoney in physical form such as banknotes and coins. More

The European Central Bank’s (ECB) 2024 Study on the PaymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More Attitudes of Consumers in the EuroThe name of the European single currency adopted by the European Council at the meeting held in Madrid on 15-16 December 1995. See ECU. More Area (SPACE) highlights the persistent relevance of cash in an increasingly digital payment landscape. The findings are compared to previous studies conducted in 2026, 2019 and 2022. Despite a gradual shift towards digital and cashless payments, cash remains deeply embedded in the euro area payment ecosystem, demonstrating resilience and continued importance for consumers.

Cash Usage Dominates at the Point-of-Sale (POSAbbreviation for “point of sale”. See Point-of-Sale terminal. More)

While the overall share of cash payments at the POS has declined, it accounted for 52% of transactions in 2024, down from 59% in 2022 (Chart 4). This gradual decrease indicates a shift towards digital payment solutions, but the enduring prevalence of cash underscores its role as a reliable, universally accepted payment methodSee Payment instrument. More. Cash remains particularly dominant in small-value transactions and person-to-person (P2P) payments, where its convenience and immediacy are unmatched.

The use of cash varies significantly from country to country. Cash was the most frequently used payment method at the POS in 14 out of 20 countries (Chart 5). The most cash-intensive countries are Malta (67% of the share of payments are in cash), Slovenia (64%), Spain and Slovakia (57%). The less-cash countries are the Netherlands (22%), Finland (27%), Luxembourg (37%) and Belgium (39%). It is worth noting that in both the Netherlands and Finland the share of cash payments has increased since 2022 by respectively 1 and 8 percentage points.

Consumer Sentiment Towards Cash is Growing

Consumers place increasing importance on maintaining access to cash. Having the option to pay with cash remains very or fairly important for 62% of the euro area population (Chart 18). The figure has increased by 2 percentage points since the previous SPACE survey in 2022. Many respondents consider cash is not just a payment method but also a safeguard in times of uncertainty or technical disruptions. The offline functionality of cash offers a level of resilience unmatched by digital alternatives, which can be vulnerable to network failures or security breaches.

Executive Board member Piero Cipollone reaffirmed the ECB’s commitment to protecting consumers’ freedom to pay as they choose. “We are dedicated to ensuring secure, efficient and inclusive payment options. By supporting both cash and the development of a digital euro, we want to guarantee people can always choose to pay with public moneyFrom the Latin word moneta, nickname that was given by Romans to the goddess Juno because there was a minting workshop next to her temple. Money is any item that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular region, country or socio-economic context. Its onset dates back to the origins of humanity and its physical representation has taken on very varied forms until the appearance of metal coins. The banknote, a typical representati... More, now and in the future.”

Accessibility of Cash is Deteriorating

Consumers place strong emphasis on the accessibility of cash. ATM availability, bank branch services, and the ability to withdraw cash easily remain critical factors for consumers across the euro area. Ensuring cash availability remains a priority for maintaining financial inclusivity, especially for vulnerable populations who may face barriers to adopting non-cash payment methods.

Perceived access to cash deteriorated at the euro area level, with the share of consumers who consider it difficult to access cash withdrawals increasing from 10% in 2022 to 13% in 2024. Belgium stands out as the most challenging country in terms of access with 22% of the population finding it difficult to access cash. Germany has seen the perception worsen by 9 percentage points, Estonia and Italy by 5 and Finland by 4.

Executive Board member Piero Cipollone reaffirmed the ECB’s commitment to protecting consumers’ freedom to pay as they choose. “We are dedicated to ensuring secure, efficient and inclusive payment options. By supporting both cash and the development of a digital euro, we want to guarantee people can always choose to pay with public money, now and in the future.”

Cash as a Backup During Technical Failures

Technical glitches in digital payment systems were reported by several respondents in the survey. These issues highlight the limitations of a fully digital payment environment and reinforce the necessity of cash as a reliable backup. In situations where card or mobile payments fail, cash continues to serve as a fail-safe option, ensuring that transactions can still be completed.

Cultural and Psychological Factors Supporting Cash Use

Beyond convenience, cultural and psychological factors also drive cash usage. Many consumers view cash as a tool for better budgeting and financial management, offering greater control over spending. Additionally, privacy concerns associated with digital payments make cash an appealing alternative for those seeking anonymity in their transactions.

Implications for Policy and Payment Infrastructure

The SPACE study underscores the need for policymakers and financial institutions to strike a balance between advancing digital payment technologies and preserving cash accessibility. Ensuring robust cash infrastructure, including ATM networks and cash distribution systems, remains essential for financial stability and consumer confidence.

The study demonstrates the enduring role of cash as a resilient, trusted, and essential payment method. Cash remains particularly relevant for low-value transactions, as a backup during technical disruptions, and as a means of maintaining financial control and privacy. Policymakers and financial institutions must ensure the accessibility and availability of cash, safeguarding consumer choice in the evolving payment landscape.