While industry narratives often downplay the role of cash, cash remains a significant payment method at the European point-of-sale (POS). However, European policy initiatives present a unique contrast with concerted governmental efforts to reduce cash usage.
1. Transaction Volume at Physical Point-of-Sale in the Eurozone
(left across eurozone, right - by select geographies in 2024)
2. Cash Usage by Vertical and Ticket Value at Physical Point-of-Sale
(across eurozone, selected verticals, 2024)
Methodology
- The ECB’s SPACE study comprises surveys conducted in 2019, 2022, and 2024, with the most recent data collected between autumn 2023 and spring 2024.
- The study includes responses from 40,981 participants across 18 countries. The data for the Netherlands and Germany were sourced from their national central banks.
- Country-specific sample sizes were determined based on the volume of point-of-sale transactions and additional demographic considerations.
3. 2024 Transaction Volume at Physical Point-of-Sale by Demographics in the Eurozone
4. 2024 Transaction Volume at Physical Point-of-Sale by Demographics in the Eurozone
5. Consumer Perceived Advantages of Cash and Cards
(2024 survey across eurozone, n=40,981)
General Commentary & Highlights
- Even though the industry narrative often downplays the role of cash, cash remains significant at the European point of sale (POS). As a result, ATMs and other cash-related businesses have a viable path forward, though they must adapt to declining volumes and find ways to sustain/grow revenues, such as adding new value-added services, leveraging existing distribution networks, etc.
- European policy initiatives present a unique contrast: while there is a concerted governmental effort to reduce cash usage, primarily to combat the gray economy and advance payment digitalization, there is also a strong push to maintain access to cash.
- The ECB continues to encourage banks to provide cash services, such as free or low-cost withdrawals, despite the high operational costs associated with handling cash.
- To capture the market opportunity left behind as cash use declines in European POS, fintech companies must prioritize building secure, reliable solutions that earn consumer trust while delivering fast and seamless checkout experiences at the point of sale.
Please do not hesitate to contact Erik Howell at Erik@FlagshipAP.com with comments and questions.