Cash vs ePayments in 2022

Money´s destiny is to become digital... Are we facing the end of Cash? Would digital money marginalise physical cash? According to the second survey report conducted by the European Central Bank (ECB): Cash was the dominant means of payment in the euro area in 2022. The report stand out the trends compared with the first survey hold in 2019:

• Cash 59% of transactions, (⬇️ 79% in 2016 and 72% in 2019)
• Card payments 34%  (⬆️ 19% in 2016 and 25% in 2019).
• Mobile APPS 3% (⬆️ 1% in 2019)

The reason for the 59% is due to the anonymity and protection of privacy and the perception that it makes one more aware of one’s own expenses.

In my opinion Digital money need to work out considerable progress in: confidentiality, ease of use, interoperability and reliability – throughout the entire transaction chain as payment in cash does and above all: equitable access at consumer-level peer-to-peer.

👉🏼 You can read the full report (link below) but let me point out the most interesting facts break down into Cash, Cards and Online payments.

CASH was used most frequently for payments:

💷 74% at vending machines in restaurants and hotels

💷 68% in supermarkets

💷 61% other shops selling day-to-day goods

💷 People in the euro zone possessed an average of €83 in their wallet. The average amount of cash held varied across countries: Austria 121€, Spain 84€, Nederland 46€.

💷  Cash was used in 2022 the same frequency for payments at petrol stations and vending machines as in 2019.

CARDS contactless card payments went from representing 41% of all card payments in 2019 to 62% in 2022,

💳 85% of euro area citizens did not receive any regular income in cash.

💳 For payments over €50, cards were the most frequently used method.

💳 Consumers feeling that card transactions are safer, faster and don’t have to carry cash with them.

ONLINE payment between 2019 and 2022 Pandemic increased consumers  online shopping considerably.

💻Online delivery was the only available means of purchasing restaurant food almost everywhere at lockdown, consumers have retained the habit even after the pandemic.

💻In 2022 consumers made over three times more online payments with cards than in 2019

💻Between 2019 and 2022, the share of mobile payments more than tripled in terms of number from 3% to 10%, and rose from 4% to 11% in terms of value.

Read the full report here: