According to the SPACE study, carried out by the European Central Bank (ECB), which investigates financial behaviour in the eurozone
every two years, among residents of the Monetary Union, the use of physical
money has reduced. It is a trend in most eurozone countries, but especially
prevalent in southern European countries: Portugal, Greece, Spain, and Cyprus.
But Europeans still like physical money. For 60% of European
citizens, being able to have physical money is still important. In addition,
people believe that using cash makes them more aware of their spending habits. Faced
with possible energy crises and power outages, the discussion of banknotes and
coins versus digital payments becomes relevant.
In the 19 countries of the eurozone, payments are generally
made with banknotes and coins. But even so, the percentage of cash payments in
all transactions dropped to 59% in 2022. Three years earlier, the share was
72%, and six years earlier 79%.
Measured in terms of turnover, card payments are, for the
first time, surpassing cash payments. According to ECB data, 46% of sales in
stores were paid by card and 43% in cash. Differences in the proportion of coin
and banknote payments are due to the fact that small amounts are more often
paid in cash, while large amounts are more likely to be paid by debit or credit
card.
The survey results illustrate a continuing trend towards
fewer physical payments at points of sale. But consumers are also shopping
online more and more often. The percentage of e-commerce payments in all
payments rose to 17% in 2022, compared to 6% three years earlier. In terms of
turnover, the share grew from 14% to 28%.
Most Europeans do not want to do without banknotes and
coins. For 60% of Eurozone consumers, these elements are 'very important' or
'quite important'. Germans and Austrians are at the top of the list of fans of
physical money.
Some shops in Portugal ilegally refuse payment by debit card. Physical money is one of the most prominent health hazards in people's daily life. For me it could cease to exist.
By Diogo F. from Madeira on 25 Dec 2022, 22:45
Use of physical money reduced in these Countries – Portugal, Greece, Spain and Cyprus – 3 of them PIGS countries; what a surprise. Broke people tend to not walk around with bundles of cash. I do not shop online nor do I want to; even so I see the trail of “services” I was robbed by these past 3 years and think to myself “How is someone in my position (not unique) supposed to trust online services MORE?” What a joke.
By guida from Lisbon on 26 Dec 2022, 04:11
Bad news. We need to keep using cash. The cabal have plans to strip us all of anything and everything we own! People need to wake up to the agenda!
By Diana Krogh from Beiras on 26 Dec 2022, 10:29
Physical cash is one of the best ways to avoid tyranny.
As soon as governments create centralised digital currency, they will be able to control what you spend your money on.
A China style social credit system will take us to the edge of tyranny, and will more than likely be based on your carbon usage.
By Quentin Ferreira from Lisbon on 26 Dec 2022, 10:57
Never ever stop using cash as CBDC or centrak bank digital currencies are what they plan and you don't want to have digital control by the central banks. They can then control what, where and when you can spend your money! It has nothing to do with dirtyness of cash. Keep as much cash at hand as you can. This is good advice for the future!
By NN from Beiras on 26 Dec 2022, 14:34
Folks who use their cards instead of cash are losing out on the value of their money, the bank takes a nibble every time they use their card. On average in food supermarkets the bank earns 300e plus per year from your account in charges for your stupidity of using your card for everything.
By Karl blore from Algarve on 26 Dec 2022, 14:35
@ Diogo F
Me think you not thinking.
Digital lock will deny you access to your apartment / house and car and phone. You can't buy food, water or clothes etc.
All because someone, you gave power to, pressed a button.
Conspiracy? Sadly, reality, and we're running towards it.
By Joe from Alentejo on 26 Dec 2022, 18:29
I agree with most of the comments previous especially about signing over accounts digitally. 7 years ago Bank of America transferred $10,000. out of my checking account because I had overdraft protection and they made a mistake. I watch what I have and caught it and it reappeared 5 days later after phone calls to the bank and their apology; I was a wreck lol. Since though I have 3 Air Miles credit cards all on Direct Withdrawal from my account and they automatically pay the entire card charges at the end of the month, keeps my credit score high and I like that. No one charges me for the use of my 2 Visas and 1 Master Card; the business has to pay the 2% so Guida (whose thoughtful posts I always enjoy) why are you paying $ using your cards? Is the process different there? I come once or twice a year, charge everything to get Air Miles and I never get charged by my bank. Why is it different for you and what am I missing? Thanks
By Wes from USA on 27 Dec 2022, 06:50
Thank goodness. Hopefully, cash will become obsolete as soon as possible. Utter pointless. I can't believe we are still having this conversation about cash as we approach 2023. The death of cash is inevitable.
By Davey Dave from UK on 27 Dec 2022, 23:23
Físical money can not seize to exist.
By Olga Pereira from USA on 31 Dec 2022, 14:23