Despite the decline in cash payments, the appetite for cash remains
The latest survey by the Monnaie de Paris, conducted in partnership with Ifop, reveals that the French remain attached to cash. In 2023, 83% of respondents said they were attached to cash, compared with 79% the previous year.
Cash payments are declining in favor of digital payment methods such as debit and credit cards, bank transfers, and mobile apps. In 2022, 50% of transactions were made in cash, a decrease of 9 percentage points over three years. However, coins and bills continue to have a promising future.
Since the introduction of the euro, the money supply in circulation in France has been rising steadily (+5.9% in December 2023 compared with the previous year). It currently stands at 210 billion euros in the eurozone.
The latest survey by the Monnaie de Paris, conducted in partnership with Ifop, reveals that the French remain attached to cash. In 2023, 83% of respondents said they were attached to cash, compared with 79% the previous year. This proportion rises to 86% among 18- to 24-year-olds. 74% of those surveyed said they use cash every day or almost every day (up 6 percentage points from a year ago). 87% said they were “concerned” about the possibility of cash disappearing.
Cash: A Symbol of Freedom and Inclusion
For the French people surveyed by Ifop, the disappearance of cash is associated with:
• A loss of privacy,
• Rising inequality,
• A decline in social interactions,
• A decline in solidarity…
Cash is reassuring: for now, it is the only form of central bank money accessible to individuals (the digital euro project could change that). It is also the only form of money that is legal tender: it must be accepted as a means of payment. Cash is therefore accessible to everyone and accepted everywhere. Even though they’re using less and less cash in their daily lives, the French want to continue being able to freely choose their method of payment.
Furthermore, cash is synonymous with freedom because it guarantees privacy. It does not generate personal data and does not allow for the tracking of spending habits or consumer behavior. Paying with cash means being free to use your money completely anonymously. It also means maintaining your independence from major digital platforms. Conversely, digital payment methods provide brands with information about consumers’ purchasing habits and preferences.
Cash Offers Reassurance in Times of Crisis
96% of French people trust cash. 63% of respondents say they have “a great deal of confidence” in it. This trust is reflected in savers’ behavior: cash is used for saving. More and more households are keeping large sums of money at home. The Banque de France estimates that approximately 25% of net euro banknote issuance is used for household hoarding. Thus, demand for cash remains as strong as ever, even though it is used less frequently at retail locations. It serves as a store of value. In a context of crisis and uncertainty, households are turning to cash because it is considered more reliable.
