- Cash remains the most used means of payment in France, but it is losing ground to electronic payments
- The French are attached to cash, which has advantages in terms of privacy, social inclusion, budget management and security
- The Banque de France is committed to maintaining cash, while working on the project of a digital euro
Is cash on the way out in France? Not so fast, replies the Banque de France, which published a study on April 20, 2023 on the means of payment used by the French. According to this survey, cash remains the preferred means of payment for French people to pay for purchases in supermarkets, restaurants or small shops. It represents 50% of point-of-sale payments in volume in 2022ahead of bank cards (43%) and other electronic means of payment (7%).
Cash, a means of payment for all
However, cash is facing increasing competition from electronic payments, which have developed with e-commerce and contactless payment. The share of cash in payments has thus decreased by 18 points between 2016 and 2022, from 68% to 50%.
Bank cards gained 10 points over the same period, rising from 33% to 43%. Contactless payment now represents more than half of card payments at physical points of sale. The check continues its free fall, with only 4% of payments in 2022, against 9% in 2016. Finally, mobile applications, such as Lydia or Paylib, are beginning to emerge, with 2% of payments in 2022.
Despite this relative decline in cash, the French remain attached to the possibility of paying in cash. According to the Banque de France, 57% of consumers consider it important to have this option. Cash has several advantages: it guarantees respect for privacy, ensures the social inclusion of people who do not have access to banking services or who have difficulty using digital technologies, it helps to track expenses and control the budget, and it is a fast and secure means of payment.
Will the digital Euro kill cash?
Non ! The Banque de France assures that it will not abandon coins and banknotes, which are a symbol of monetary sovereignty. It ensures that the network of automatic teller machines (ATMs) is sufficient to meet the needs of users.
If she is also working on the project of a digital euro, which would be a dematerialized form of the euro, she assures us that she will not replace cash. Rather, the digital euro would aim to complete the existing offer of means of payment and to strengthen confidence in the European currency.
