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Three years after the onset of the Covid-19 pandemic, cash continues to assert its resilience in France’s payment landscape, standing strong against the burgeoning tide of digital transactions. According to Banque de France Bulletin no. 245: Article 5, and supported by the European Central Bank's latest SPACE II survey covering October 2021 to June 2022, cash remains the most widely used payment method at points of sale in France, accounting for 50% of transaction volumes. This decline in cash usage, down by 7 percentage points over three years, is notably more moderate compared to a 14 percentage point drop across the broader euro area.
The persistence of cash in France is complemented by a significant rise in digital payments. Payment card usage has surged by 8 percentage points from 2019 to 2022, nearly matching the euro area's 9 percentage point increase. Contactless payments have particularly flourished, now representing 51% of all card transactions in France—up from 38% in 2019—while the euro area average has climbed to 62%, up from 41%.
Additionally, the pandemic-induced shift towards online shopping has driven an 8 percentage point increase in e-commerce in France, compared to an 11 percentage point rise in the euro area. By 2022, 20% of non-recurring payments in France were made online, up from 12% in 2019, reflecting a significant transformation in consumer purchasing behaviors. Despite the growth in digital and contactless payments, cash remains indispensable, especially for basic necessities such as food and daily supplies, which traditionally relied on cash transactions.
Households in France continue to place high value on the option to pay with cash, citing its accessibility and reliability. The acceptability and accessibility of cash are rated as very satisfactory, ensuring its sustained importance even as digital payment methods expand. This enduring preference for cash highlights a unique aspect of French consumer behavior within the euro area, where digital payments are rapidly gaining ground. Overall, while cash usage is on a long-term decline, France's measured reduction and the continued preference for physical currency underscore its pivotal role in the nation's financial practices amidst a swiftly digitizing world.
source: https://publications.banque-france.fr/en/three-years-after-beginning-health-crisis-cash-holding-its-own-against-other-means-payment-france
