Introduction
Cash is used in 52% of point-of-sale transactions as a percentage of total payments, which is a decrease from 59% utilized in 2022. With a share of 45%, down from 46%, cards are the most dominant payment instrument in terms of value. Cash in second place, with 39%, down from 42%, is the next most dominant payment instrument. Mobile apps are on the rise, reaching seven percent, which is an increase from four percent two years ago. This is even though mobile apps still only account for a very modest percentage of point-of-sale (POS) payments.
Generally speaking, the proportion of total transactions that are comprised of digital payments continues to increase. Online payments are responsible for 21% of consumers’ day-to-day payments in terms of number and 36% in terms of value, which is an increase from 17% and 28% respectively in 2022. This is backed by the fact that online payments have been on the rise. The most common method of making payments online is through the use of credit or debit cards, which accounts for 48% of all transactions. Other electronic ways, such as mobile apps and payment wallets, accounted for 29% of all transactions.
Payment preferences that customers have expressed have not shifted. A total of 55% of Europeans prefer to pay with cards and other non-cash ways at stores in 2024, the same percentage as in 2022. 22% of Europeans prefer to pay with cash, and 23% of Europeans have no clear choice. Generally speaking, customers believe that cards are quicker and simpler to use. When it comes to managing their expenses and maintaining their privacy, they believe that cash is more to their advantage. Even if the use of cash is decreasing, 62 percent of Europeans still believe that it is essential to have coins and notes available as a form of payment. The vast majority of people, 87%, are content with their access to cash and believe that it is either very easy or pretty easy to obtain from a bank or an automated teller machine.
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Industry Comments
ECB executive board member Piero Cipollone, says: “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.”
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FAQs
1. How is the use of cash changing for POS transactions?
Cash is still widely used in point-of-sale (POS) transactions but is gradually declining. In 2024, cash accounted for 52% of POS payments by number, down from 59% in 2022. By value, cash held a 39% share, decreasing from 42%. While digital payments are growing, many Europeans still value cash. About 62% believe it’s essential to have cash as a payment option, and 87% report easy access to cash through ATMs or banks.
2. What trends are driving the rise of digital payments?
Digital payments continue to grow, driven by the increasing use of cards and mobile apps for both online and POS transactions. Mobile app usage at POS rose to 7% in 2024, up from 4% two years ago. For online payments, cards remain the most popular method (48% of transactions), followed by wallets and mobile apps (29%). Online payments now make up 21% of day-to-day payments by number and 36% by value, marking a significant rise since 2022.
3. What are consumers’ payment preferences?
Consumers’ payment preferences remain steady. In 2024, 55% of Europeans prefer cards or other non-cash options for in-store payments, while 22% prefer cash, and 23% have no clear preference. Cards are favored for their speed and convenience, whereas cash is valued for expense management and privacy. Despite the shift toward digital payments, cash retains its importance, with most consumers satisfied with their ability to access it when needed.
Conclusion
Payment trends in Europe are evolving, with digital payment methods like cards and mobile apps gaining traction, especially for online and POS transactions. In 2024, cards dominate by value, contributing to 45% of POS payments, while cash use has declined to 52% by number and 39% by value. Mobile apps, though still in their early stages, have shown notable growth. Online payments are also rising, with cards being the preferred method.
However, cash remains relevant, especially for consumers seeking privacy and better expense management. A majority of Europeans still value having cash as an option and find it accessible through ATMs and banks. As digital and traditional payment methods coexist, the financial ecosystem must balance innovation with inclusivity, ensuring accessibility for all.
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