A recent European Payment Study by BearingPoint highlights key trends shaping consumer behaviour, shedding light on the growing awareness of central bank digital currencies (CBDCs), particularly the digital euro.
Despite the broader European shift towards digital payments, cash remains the dominant payment method in German-speaking countries.
The study found that cash accounts for 69% of transactions in Germany, 73% in Austria, and 57% in Switzerland.
These figures contrast sharply with Nordic nations, where cash usage is considerably lower – Sweden at 28% and Denmark at 35%.
The data reinforces the deeply ingrained cultural and economic differences that shape payment preferences across the continent.
While cash transactions have decreased in nearly all surveyed countries compared to the previous year, it is evident that in some regions, particularly where cash still plays a central role in daily transactions, the transition to digital alternatives may take longer.
Rising Awareness of the Digital Euro and CBDCs
The digital euro has captured the attention of European consumers, with only one-third of respondents stating they had never heard of it.
However, awareness levels differ across markets.
In Sweden, Denmark and Switzerland, four in 10 people remain unfamiliar with CBDCs, indicating the need for further education and outreach efforts in these regions.
Interestingly, consumers view the digital euro as a complement rather than a replacement for existing payment methods.
This suggests that while digital alternatives are gaining traction, they are unlikely to entirely displace traditional payment instruments like cash and bank transfers.
Digital Euro: Adoption Potential
Consumer interest in the digital euro is on the rise, with one in three respondents stating they would use it, and one in five indicating they would use it multiple times a week.
Adoption rates appear to be highest in countries where cash is widely used, reinforcing the idea that digital currencies could serve as an alternative to physical money rather than completely replacing it.
However, non-euro countries like Sweden and Denmark show lower adoption intent, with only one in four respondents willing to use a CBDC and less than one in ten likely to use it frequently.
Online Shopping Leads the Way
E-commerce remains the most favoured use case for the digital euro, with 37% of respondents across the surveyed countries selecting online shopping as their preferred application.
Ireland leads the pack at 48%, followed by Austria at 42%, which saw a notable increase compared to the previous year.
In-store shopping follows as the second most important use case at 28%, while peer-to-peer money transfers are particularly popular in Ireland (36%) and Finland (34%).
Trust in Banks Surpasses Technology Companies
When it comes to managing digital euro transactions, trust in banks remains significantly higher than in technology firms.
The study found that 55% of respondents trust banks to handle digital euro transaction data, compared to just 5% for technology giants such as Apple, Google and Amazon.
This presents an opportunity for the banking sector to solidify its role in the evolving payments landscape.
“The banking sector is clearly favoured for storing and recording transaction data,” says Dr. Robert Bosch, Partner and global leader in Banking & Capital Markets at BearingPoint.
“When it comes to central bank digital currencies, the banking sector could leverage this momentum to strengthen its position with end customers.”
Key Factors Driving Digital Euro Adoption
For consumers, cost-free transactions remain the primary factor influencing digital euro adoption, with 43% of respondents citing it as the most important criterion.
Universal acceptance (37%) also plays a significant role, while only one in five consumers prioritise user experience.
The Future of Payments in Europe
The BearingPoint survey underscores the accelerating shift towards digital payments while revealing that cash remains deeply embedded in certain markets.
The digital euro continues to gain traction, with growing consumer awareness and a strong potential for adoption, particularly in cash-reliant economies.
However, trust in financial institutions remains a key differentiator, presenting banks with a unique opportunity to reinforce their position in the digital payments ecosystem.
As central banks and regulators move forward with CBDC initiatives, the findings highlight the need for ongoing consumer education, seamless integration into existing payment infrastructures and a commitment to addressing concerns around privacy and accessibility.
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