European Cash Fundamentals on the Move

The European Central Bank (ECB) has reported on its Study on the Payment Attitudes of Consumers in the Euro Area (SPACE) 2022.

While payment behaviour varies significantly across Europe, the trend is clear, a move away from cash. On the other hand, there is also a clear change in people’s understanding about the value and importance of cash.

Key observations

• Cash was used for most consumer payments, but its share decreased to 59%.

• The share of electronic payments rose, including day to day and online payments.

• Consumers prefer to pay electronically but value cash as an option. Those regarding having the option to pay in cash as important increased from 55% in 2019 to 60% in 2022.

• Cash is used for low value payments in store and person-to-person (P2P).

• Cash is seen as valuable as a way to remain aware of expenditure (40%), to protect privacy (40%) and to allow immediate settlement (32%).

• Overall people were satisfied that they could access cash.