Cash is still king in many parts of the world and remains one of the most popular methods of payment for goods and services. In Europe, the European Central Bank (ECB) reports that cash still accounted for over 80% of all retail payments in 2017. However, the use of cash is not equal across the continent, with some countries embracing cashless payments and others favoring the notes and coins. So which European countries are most likely to prefer cash over other payment methods?
This article will explore the European countries where cash transactions are still the most popular. We’ll look at the reasons why some countries are more traditional and still favor cash payments, and how this affects the European economy. We’ll also discuss how cash use differs across the continent, and the different approaches to cashless payments.
Why Do Some European Countries Still Prefer Cash?
Cash is a familiar and trusted method of payment with a long history. Across Europe there are many reasons why cash transactions are still preferred by some people, and why it is still viewed as the most reliable form of payment.
Trust: In some countries there is a distrust of electronic payments and a lack of confidence in the security of bank cards or online payment platforms such as PayPal. In Ireland for example, 45% of adults only use cash for day-to-day purchases due to concerns over online security.
Reliability: Cash payments are quick and reliable, and do not require any special equipment or access to the internet. This is especially important in remote locations such as villages where banking services may not be available.
Privacy: Cash payments provide customers with a greater sense of privacy compared to electronic payments. This is why many countries still prefer cash for sensitive purchases, such as buying medical supplies or receiving payments for services.
Cultural: In some European countries, cash payments remain a central part of the culture and are often viewed as an important tradition. For instance, in France it is common for an employer to pay a salary in cash, and in Spain it is almost unheard of for businesses to accept credit or debit cards for small purchases.
The European Cash Landscape
Not all countries in Europe have the same preference for cash. Each country has its own unique culture, economy and approach to payments, which means the use of cash varies widely across the continent.
Cash-Loving Countries: The countries where cash payments remain most popular are Greece, Italy, Slovakia and Bulgaria. According to the ECB, these countries used cash for 4-8 out of every 10 non-cash payments in 2017, with Greece using cash for an astonishing 8 out of every 10 payments.
Cash-Adopters: These countries are adopting cashless payments at a slower rate than their European counterparts, but still use it more than other countries. This includes Spain, Germany, France and Luxembourg, where cash accounted for around 4-6 out of every 10 payments in 2017.
Slow Embracers: Some countries in Europe view cash as a necessary evil and are keen to move away from it. However, the pace of adoption is slow compared to other countries. This includes countries such as Austria, Sweden and the UK where cash accounted for around 2-5 out of every 10 payments, according to 2017 figures.
Cashless Pioneers: Lastly, there are the cashless pioneers who have embraced electronic payments with open arms. This includes the Netherlands, Belgium and Finland, where cash accounted for less than 1 out of every 10 payments in 2017.
Cashless Revolution: How is the European Economy Changing?
The move away from cash is transforming Europe and shaking up the way we make payments. This revolution is being driven by a number of factors, including technological advances, the growth of digital banking and the widespread availability of mobile payments.
Technology: The introduction of contactless payments using near-field communication (NFC) technology has made it easier and faster to make payments withcards, phones and watches, without the need for cash. This is thanks to the growing trend of digital banking, which allows customers to easily transfer and manage money online with their bank accounts.
Digital Banking: While traditional banks still offer cash services, the availability of digital banking services is giving customers more choice and convenience. Online banks such as N26, Monzo and Ida Bank are offering customers the ability to open and manage bank accounts on their phones, as well as the use of debit cards, contactless payments and other payment methods.
Mobile Payments: The rise of mobile payments is another factor driving the growth of electronic payments in Europe. Services such as Apple Pay, Google Pay, and Samsung Pay have become increasingly popular in Europe, and are now accepted in many shops and restaurants across the continent.
Cash payments are still king in many parts of Europe, but the use of cash is changing. Some countries are more traditional and still favor cash payments, while others are leading the charge in the move towards digital payments. This cashless revolution is transforming Europe and shaking up the way we make payments. As technology advances, digital banking services increase, and mobile payments become more widely accepted, cash transactions will become less popular.