ECB study: most of our payments are made with cash, but we use electronic payments when making larger purchases

Cash remains the most commonly used payment instrument in the euro area, but its level of use is declining. Conversely the use of electronic payments is strengthening, and they are prevalent in large-value payments. The majority of the participants in the study judge electronic payments to be faster and simpler, but also mention the importance of being able to pay with cash. Banka Slovenije finds that the share of everyday payments made in cash in Slovenia remains among the highest figures in the euro area.

The ECB today released its Study on the payment attitudes of consumers in the euro area, the fourth such study. A comparison of the data reveals a trend of increase in electronic payments, but cash continues to account for a significant share, particularly in smaller payments and between consumers.

In terms of the number of transactions, cash remains the most used means of payment at physical points of sale, accounting for 52% of the total. This compares with 79% of payments at physical POSs in 2016, 72% in 2019, and 59% in 2022. Conversely there is increasing use of electronic payments, which are prevalent in large-value payments. In terms of value, card payments are ranked first (45% of the total), followed by cash (39%) and mobile apps (7%).

Despite the trend of decline in the use of cash, the share of survey participants judging cash to be an important means of payment is increasing, rising from 60% in 2022 to 62% in 2024. The main advantages that they cite are easier management of personal finances, and the maintenance of anonymity, while card payments are seen as quick and simple.

Figure 1: Breakdown of payment instruments used at points of sale in the euro area

Source: Study on the payment attitudes of consumers in the euro area (SPACE 2024)

Similar trends in Slovenia, with above-average use of cash

The study once again showed that there are considerable differences in the payment behaviour and habits of consumers in individual euro area countries. Similarly to the euro area overall, Slovenia is facing a gradual decline in the use of cash, and a rise in the share of electronic payments. But with cash accounting for 64% of payments at physical POSs, Slovenia has one of the highest levels of cash use (2022: 73%).

The use of payment cards at physical POSs has increased in Slovenia: they accounted for 29% of purchases, up from 24% in 2022. Similarly to consumers in other euro area countries, payment cards are primarily used to make larger purchases.

Figure 2: Breakdown of payment instruments used at points of sale in Slovenia

Sources: Study on the payment attitudes of consumers in the euro area (SPACE 2016, 2019, 2022 and 2024)

The full study can be found on the ECB website, and the next study on payment attitudes of consumers in the euro area is expected to be released in 2026.

Links:
The use of cash by households in the euro area, 2016
Study on the payment attitudes of consumers in the euro area, 2019
Study on the payment attitudes of consumers in the euro area, 2022