The European Central Bank (ECB) has published its latest report on non-cash payments for H1 2024, offering an incisive examination of evolving payment behaviours within the euro area.
The findings underscore a continued trajectory towards digitalisation, marked by increased reliance on card payments, the proliferation of contactless transactions and a decline in cash-dependent financial activities.
These trends reflect broader macroeconomic and technological developments shaping the European payments landscape.
Growth in Non-Cash Transactions: A Macroeconomic Perspective
In H1 2024, the euro area recorded 72.1 billion non-cash transactions, reflecting a 7.4% year-on-year increase.
The aggregate value of these transactions expanded by 1.9%, reaching €113.5 trillion.
This persistent expansion is indicative of a structural transition towards digital financial systems, driven by technological innovation, consumer adoption and regulatory incentives.
Card-based transactions remained predominant, constituting 56% of all non-cash payments, while credit transfers accounted for 22%, direct debits for 15% and e-money payments for 6%.
The waning relevance of paper-based financial instruments such as cheques further reinforces the systemic shift towards digital transactions.
Card Payments: The Dominant Payment Form
Card transactions increased by 10.3%, reaching 40.1 billion transactions.
The cumulative value of these transactions rose by 7.0%, totalling €1.5 trillion, with an average transaction value of €39.
A particularly salient development was the rise of contactless transactions, which grew by 13.2%, reaching 25.8 billion transactions and accumulating a transactional value of €0.7 trillion.
Lithuania led the euro area in card penetration, with card-based payments constituting 78% of total non-cash transactions.
This high adoption rate underscores the competitive advantage of digital payment infrastructures in fostering financial inclusion and efficiency.
Credit Transfers and Direct Debits
Credit transfers, traditionally employed for large-value transactions, exhibited a 7.7% increase, reaching 15.7 billion transactions, with an aggregate value of €105.2 trillion.
These transactions constituted 93% of the total value of non-cash payments, reaffirming their role as a foundational mechanism in business-to-business and institutional financial operations.
Direct debits, widely utilised for recurring payments, recorded 2.7% growth, totalling 11 billion transactions, with their cumulative value increasing by 5.8% to €5.3 trillion.
Germany maintained its leading position in direct debit utilisation, where they represented 32% of total non-cash transactions.
E-Money Transactions: Diverging Trends in Volume and Value
Despite a 2.7% decline in transaction volume, e-money payments exhibited a 6.6% increase in total value, reaching €0.3 trillion.
This suggests an evolving consumer preference for higher-value digital wallet transactions, with 91% of e-money transactions conducted through digital accounts rather than physical cards.
Expansion of Digital Payment Infrastructure
The number of payment cards in circulation expanded by 4.4%, reaching 720.6 million, averaging two cards per euro area resident.
Concurrently, the number of automated teller machines (ATMs) declined by 3.0% to 260,900, reflecting a continued retreat from cash-reliant financial behaviour.
The number of point-of-sale (POS) terminals exhibited significant growth, increasing by 10.1% to 20.8 million units.
Notably, 86% of these terminals now support contactless transactions, underscoring the increased consumer preference for frictionless, digital-first payment solutions.
Retail vs. Large-Value Transactions
Retail payment systems, which process consumer and business transactions, handled 52.1 billion transactions, accumulating a total value of €25.1 trillion.
Instant credit transfers accounted for 15% of all credit transfers and 4% of total transaction value, illustrating the rising adoption of real-time payment solutions.
Conversely, large-value payment systems – primarily facilitating interbank and institutional transactions – processed 72 million transactions, amounting to €222.5 trillion.
The T2 and EURO1/STEP1 systems remained the principal conduits for large-value settlements.
The Ascendancy of Digital Finance
The ECB’s data for 2024 underscores an unrelenting shift towards digital transactions, with card payments surpassing the 50% threshold, contactless transactions becoming ubiquitous and instant credit transfers gaining traction.
The declining role of cash, coupled with the rapid expansion of digital infrastructure, signifies a fundamental transformation in consumer and institutional payment behaviours.
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