Global: Digital Payments Surge in Europe, but Cash Remains Dominant at Point of Sale

Despite the continued rise of digital payments in the euro area, cash remains the most used payment method at physical points of sale (POS), according to a recent study by the European Central Bank (ECB).

Cash Still Leads at POS

Cash is responsible for 52% of all POS transactions by number, marking a decline from 59% in 2022. In terms of value, however, cards have taken the lead, accounting for 45% of POS transaction value—down slightly from 46%—while cash represents 39%, a drop from 42%.

While cash remains prominent, the use of mobile apps for POS payments is steadily increasing. Mobile apps now account for 7% of POS payments, up from 4% in 2022, reflecting growing consumer adoption of digital payment tools.

Growth in Digital Payments

Digital payments have been gaining momentum across all transaction types. Online payments, in particular, are on the rise, making up 21% of consumers’ day-to-day transactions by number and 36% by value. These figures represent a significant increase from 17% and 28%, respectively, in 2022.

Cards remain the preferred method for online transactions, constituting 48% of online payments. Other electronic payment methods, including wallets and mobile apps, collectively account for 29% of online transactions.

Payment Preferences: Cards vs. Cash

Consumer preferences for payment methods have remained consistent over the past two years. In 2024, 55% of Europeans expressed a preference for paying with cards or other non-cash methods in stores, 22% preferred cash, and 23% had no clear preference.

Cards are generally perceived as faster and more convenient, while cash is favored for its utility in expense management and privacy protection.

The Continued Importance of Cash

Despite the decline in cash usage, it remains a vital payment option for many Europeans. Around 62% of respondents believe it is important to retain cash as a payment choice, and 87% report satisfaction with their access to cash through ATMs or banks.

ECB’s Commitment to Inclusive Payments

Piero Cipollone, an executive board member of the ECB, underscored the institution’s commitment to secure and inclusive payment options.
“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,” Cipollone stated.

Balancing Tradition and Innovation

As digital payment methods gain traction, the ECB aims to strike a balance between fostering innovation and maintaining accessibility to traditional payment methods. This dual approach ensures that Europeans can continue to choose payment options that best suit their needs and preferences.