Money: Is the End of Cash Near?
According to the latest figures from the European Central Bank (ECB), only one in two transactions was made in cash last year.
According to this data, cash payments in stores accounted for 50% of transactions last year. By way of comparison, that percentage was 68% in 2016 and 57% just before the health crisis.
This trend can, of course, be explained by the rise in credit card payments (CN), particularly for small purchases, thanks to the growth of contactless payments. These payments, made using NFC technology, now account for 56% of all credit card payments, according to the French Credit Card Association.
According to a SumUP study, contactless payment usage in France rose by 6.1% in 2023 and now accounts for 77.2% of digital payments (compared to 72.8% in 2022). Unsurprisingly, it is most widely used in the food service sector—particularly at fast-food restaurants (82.3%), bars and nightclubs (80.7%), and cafés and restaurants (74.2%). Its adoption is also growing rapidly in the hospitality sector (+38% compared to 2022).
On the other hand, as their use declines, questions arise about their availability and that of ATMs. Since these machines are extremely expensive to manufacture and operate, banks are tending to phase them out. A total of 5,000 ATMs disappeared between 2018 and 2021, according to data from the Banque de France. This trend is expected to worsen with the merger of the ATM networks of BNP Paribas, Société Générale, and Crédit Mutuel by 2025. The number of ATMs is expected to be cut in half.
