Cash Remains King in Euro Area Despite Rise of Digital Payments

Cash remains the most widely accepted payment method in the euro area, according to a recent survey by the European Central Bank (ECB). The survey found that 92% of companies receiving payments from customers in physical locations accept cash, an increase from 90% in 2024. Cards are accepted by 88% of companies, while mobile payments have seen significant growth, with 68% of companies accepting them.

The ECB survey, which covered 8,205 companies across the euro area, found that Greece and Italy have the highest cash acceptance rates among SMEs at 99%. In contrast, Belgium and Cyprus have lower cash acceptance rates at 81% and 76%, respectively. The survey also found that a quarter of companies have introduced measures to encourage digital payments, such as installing cashless payment counters or reducing the number of counters where cash can be paid.

Interestingly, despite the rapid expansion of mobile payments, cash remains the preferred method for many companies. A third of companies surveyed said they had no preference when it comes to payment methods, while 21% preferred cash and 24% preferred debit cards. The survey also found that consumer preference is the most important factor in determining which payment methods a company accepts.

The ECB has been conducting surveys on cash usage by companies since 2024, and this latest survey suggests that cash remains an essential part of the euro area's economy. While digital payments are becoming increasingly popular, they have not yet led to the disappearance of cash from most points of sale.