Cashless payments are becoming more popular in Europe

September 18, 2018 8:51 amComments Off on Cashless payments are becoming more popular in EuropeViews: 544

Cashless paymentsCashless payments are becoming more popular in Europe. Last year, the total number of payments by electronic means (card, money transfer from one account to another, checks and etc) made in the European Union (EU) grew by almost 8% and reached 134 billion EUR, according to data from the European Central Bank (ECB).

The Europeans used cards transactions more than ever. The card payments jumped by 11% last year and accounted for more than half of payments electronically (52%) compared to over 37% ten years ago.

The growth in card payments is explained by the development of e-commerce. It can even expand in the next years because of the diversification of electronic payments, such as a non-contact payment or electronic wallets that allow fast online payments without the need to systematically enter the bank card number.

At the same time, in the coming years, bank cards may be competing with the development of the instant transfer of funds from one bank account to another.

There are so far major differences in the use of payment cards in the EU. They accounted for nearly 55% of payments electronically in France last year and are widely used in the UK, Scandinavia and the Baltic countries.

The transfer of funds from one bank account to another also continues to grow, albeit much slower than card payments.

However, cash remains highly used in Europe. In a study published late last year, the ECB found that nearly 80% of Eurozone retail transactions were made in cash.

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