The European Central Bank’s (ECB) 2024 Study on the Payment Attitudes of Consumers in the Euro Area (SPACE) provides a comprehensive analysis of consumer payment behaviours, highlighting significant trends and shifts in preferences.
The report presents the key findings of a study conducted by the ECB, comparing the findings with those of the previous SPACE studies (in 2019 and 2022) and, where relevant, with an earlier ECB study on the use of cash by households in the euro area (SUCH), conducted in 2016.
The payment behaviour and, to a lesser extent, the stated preferences of consumers have evolved over this time span.
Euro area consumers have been using non-cash instruments more frequently and cash less often to pay at the point of sale (POS), although cash is still widely used to pay smaller amounts.
The stated preference for cash over non-cash payments has decreased, but cash is still considered an important payment option by the majority of consumers.
Chapter 2 of the report delves into non-recurring day-to-day payments, offering insights into how euro area consumers are adapting to the evolving payment landscape – and this is what we focus on in this article.
Point-of-Sale (POS) Payments
In 2024, 75% of day-to-day payments were conducted at physical points of sale (POS), a decrease of 5% on 2022 and 12% on the 2019 report.
However, the value share of these transactions decreased from 68% in 2022 to 58% in 2024, indicating a shift towards higher-value transactions being conducted through other means.
Cash remained the most frequently used payment method at POS, accounting for 52% of transactions, though this represents a decline from 59% in 2022.
In terms of transaction value, cards were predominant, constituting 45% of the total value, while cash accounted for 39%.
Notably, cash was predominantly used for smaller transactions, whereas cards were favoured for payments exceeding €50.
Person-to-Person (P2P) Payments
Cash continued to dominate person-to-person (P2P) transactions, representing 41% of such payments.
However, there is a notable diversification in payment methods:
- Cards and Mobile Apps: These methods accounted for 36% of P2P transactions, reflecting the growing adoption of digital payment solutions among consumers.
- Credit Transfers: Constituted 11% of P2P payments, indicating a steady use of traditional banking methods for personal transactions.
- Instant Payments: Made up 6% of P2P transactions, highlighting an emerging preference for real-time payment solutions.
Online Payments
The share of online payments in consumers’ day-to-day transactions increased to 21% in 2024 from 17% in 2022, underscoring the ongoing digitalisation of consumer payment habits.
In terms of value, online payments accounted for 36% of day-to-day payments, up from 28% in 2022.
Cards remained the most utilised instrument for online payments, representing 48% of transactions, though this is a slight decrease from 51% in 2022.
E-payment solutions, including payment wallets and mobile apps, saw an increase, comprising 29% of online transactions compared to 26% in 2022.
Consumer Preferences and Accessibility
Consumer preferences have shown a gradual shift towards cashless payments:
- Preference for Cashless Payments: 55% of euro area consumers expressed a preference for cards and other cashless payments when paying in a shop, unchanged from 2022.
- Preference for Cash: 22% preferred cash, while 23% had no clear preference, indicating a stable yet significant portion of consumers valuing cash payments.
Despite the increasing inclination towards digital payments, cash remains an important option for many consumers:
- Importance of Cash Availability: 62% of consumers considered it important or very important to have cash as a payment option, up from 60% in 2022.
- Perceived Advantages of Cash: The primary benefits cited for cash usage were anonymity and better protection of privacy, as well as aiding consumers in being more aware of their expenses.
- Perceived Advantages of Card Payments: The main advantages identified for card payments were the convenience of not carrying cash and the perception of faster and easier transactions.
Access to Cash and Financial Products
The majority of euro area consumers reported satisfaction with their access to cash, though there is a slight decline:
- Ease of Access: 87% found it fairly easy or very easy to access an ATM or bank, a slight decrease from 89% in 2022.
- ATM Withdrawal Fees: 57% never paid a fee when withdrawing cash from an ATM, while 11% reported paying a fee always or most of the time.
- Cash Withdrawals at Retailers: 57% of consumers had the option to withdraw cash at shop counters, indicating an alternative avenue for cash access.
Regarding financial product ownership:
- Payment Accounts: The share of consumers holding a payment account increased to 93% in 2024 from 91% in 2022.
- Payment Cards: Ownership decreased slightly to 92% from 94% in 2022, suggesting a marginal decline in card holding.
Payment Acceptance and Technical Issues
A notable portion of consumers encountered situations where their preferred payment method was not accepted:
- Non-Acceptance of Preferred Methods: 24% reported that their preferred payment method was not always offered by the merchant or payee in physical locations.
Additionally, technical difficulties were experienced during payments:
- Assistance with Digital Payments: Almost one in ten respondents reported needing assistance when making digital payments, highlighting the necessity for user-friendly digital payment solutions.
The SPACE 2024 findings illustrate a dynamic payment landscape in the euro area, characterised by a gradual shift towards digital and cashless payment methods, while cash continues to play a significant role, especially for small-value and P2P transactions.
Consumer preferences are increasingly favouring cashless options, yet the importance of cash availability remains evident.
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