Cash and the Digital Euro!

Last Updated: 11. Dezember 2023By

Cash is the most commonly used payment method in Europe. On average, one in four people see the Digital Euro as an addition to cash. Nearly one in five would use the Digital Euro several times a week. Fast, secure and accepted everywhere – these are the qualities expected from the Digital Euro, according to a new survey by management and technology consultancy BearingPoint in seven European countries.

Cash is also the measure of all things in Europe, with the highest usage in Austria and Germany, and the lowest usage in Finland. Despite the significant differences in the use of cash, the expectation to use the Digital Euro is homogeneous in all countries. The Digital Euro would primarily be used for online shopping. The criteria of free and accepted everywhere 24/7 (online and offline) encourage respondents to use the Digital Euro the most.

In Germany with 71% and Austria with 79%, the frequency of cash usage is significantly more pronounced than in other European countries. Respondents from Switzerland (63%), Ireland (61%), the Netherlands (57%) and France (55%) show a relatively high usage rate, but are still significantly behind Germany and Austria. In Finland, cash usage is significantly lower at 43%.

78% of respondents in Austria see no departure from cash usage in the next five years, putting them at the top of the survey. In the other countries surveyed, a clear majority (on average 63%) cannot see any departure from cash in this period of time. In contrast, 36% of respondents in Finland expect that cash will not be used in five years.

Cash is still the most popular payment method The popularity of cash is also reflected in the frequency of cash usage. Multiple weekly usage is most pronounced in Austria with 73% and Germany with 66%. Whereas only 19% of respondents in Finland use cash multiple times a week. Despite the significant differences in cash usage, the expectation to use the Digital Euro is homogeneous in all countries. Nearly one in five respondents (across countries between 15% and 21%) would use the Digital Euro multiple times a week.

BearingPoint’s analysis: Cash is by far the most popular payment method in Europe. The fact that the use of cash shows a high level is partly due to the fact that in uncertain times cash is perceived as particularly familiar and secure. Cash is still highly appreciated, which is also reflected in the clear majority for cash usage in the next five to ten years. It is interesting that despite the differences in the current use of cash, the Digital Euro would be used on average by every fifth person multiple times a week. This underscores the potential of the Digital Euro. It seems important to the respondents that it would be accepted everywhere around the clock and offered for free.

On average, around one in three have not yet heard of the Digital Euro That the Digital Euro, according to official communication from the European Central Bank, should not replace cash but supplement it, is also reflected in the survey results. On average, about 26% of respondents expect the Digital Euro to be used as an addition to existing payment methods. The information level about the Digital Euro is most pronounced in Austria, with only 27% of respondents saying they have not yet heard of it. This may also be due to the current intensive political debate about the Digital Euro.

In contrast, 43% of respondents in France stated that they had not yet heard of the Digital Euro. In the two countries with the highest current use of cash – Austria and Germany – the expectation is more pronounced that the Digital Euro will be used less often than cash. In Finland, the country with the lowest current use of cash, a more frequent use of the Digital Euro than cash is expected.

Fast, secure and accepted everywhere – these are the qualities expected from the Digital Euro The expectations of the properties of the Digital Euro are very homogeneous across countries. For the respondents, the following properties are particularly important: fast, secure and accepted everywhere, closely followed by availability at all times. The also surveyed property anonymity is by far the least important to the respondents with the Digital Euro.

The Digital Euro would primarily be used for online shopping The preferred area of use for the respondents who would use the Digital Euro is clear: online shopping, with even half of respondents from Ireland saying they would use it there. In all countries, the Digital Euro would also be used relatively frequently for everyday activities, such as in a supermarket or at a gas station. The Digital Euro would be used the least often to send money to friends.

Cost and acceptance are the essential criteria for using the Digital Euro The criteria of free and accepted everywhere 24/7 (online and offline) encourage respondents to use the Digital Euro the most. The trust in data security is seen as a more important criterion for the use decision than a great user experience.

The house bank receives the highest trust for the transaction data of the Digital Euro The results of the survey show a very heterogeneous picture of trust in the transaction data. In Finland, 58% of respondents would trust their house bank with the transaction data, compared to the Netherlands with only 7%. The trust in the data to the central bank is strongest in the Netherlands with 27%, even ahead of Switzerland (21%). Technology companies such as Apple, Google or Amazon would be the least likely to trust their transaction data.

BearingPoint conclusion: Knowledge of the Digital Euro is now relatively widespread. However, to increase the acceptance of the Digital Euro as an addition to cash, the information level should be further expanded. In the sensitive topic of data storage and recording, the majority of respondents trust their house bank. This is a clear vote of confidence in the trusting customer-bank relationship in payment transactions. Technology companies such as Apple, Google and Amazon do not receive such trust.

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