What Are the Key Trends in European Consumer Payments for 2024?

A new report by the European Central Bank (ECB) reveals that digital payment methods continue to gain ground across the euro area, though cash remains a vital part of the consumer payment landscape — particularly for small-value transactions and person-to-person (P2P) payments.

The findings, drawn from the ECB’s Study on the Payment Attitudes of Consumers in the Euro Area (SPACE), show a clear shift in consumer behavior since previous surveys in 2019 and 2022, with payment habits evolving in favor of convenience and technology.

Online and Card Payments See Broad Growth

In 2024:

• 21% of day-to-day payments were made online, up from 17% in 2022.
• By value, online payments rose to 36%, compared to 28% previously.
• Cards were the dominant instrument by value at the point of sale (POS), accounting for 45% of POS transactions.
• While cash still made up 52% of POS payments by volume, its share declined from 59% in 2022.

Cash Dominates Small Purchases, P2P, and Privacy-Conscious Consumers

• Cash remained the most-used method for low-value payments and P2P transactions, accounting for 41% of the latter.
• Among P2P alternatives, mobile apps and cards were used in 33% of cases, with credit transfers (9%) and instant payments (6%) making up the rest.

Despite a decline in cash usage, 62% of consumers still consider having access to cash “important” or “very important.”

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Privacy, Accessibility, and Merchant Preferences Still Shape Habits

• 58% of respondents expressed privacy concerns over digital payments.
• 87% found it easy to access an ATM or bank, though satisfaction with cash access dipped slightly.
• A notable 24% of consumers said their preferred payment method was not always accepted at physical stores.

Preferences Stable, But Merchant Gaps Remain

• 55% prefer card or cashless options for POS purchases.
• 22% still prefer cash, and 23% had no clear preference — figures unchanged since 2022.

Although ownership of payment accounts rose to 93%, payment card ownership dipped slightly to 92%.