From time to time, the discussion about refusal to use physical money (cash), namely, banknotes and coins, arises in the society.
PrivatBank has done a research on habits of 15,000 payment card users – examining how they are managing their cards and money. Results show that in the first part of 2018, the card users had spent 39.2 % less money with their cards in trade and service areas and on the Internet than amounts, they had withdrawn from ATMs. Compared to the same period last year, the habit to spend more in cash rather than using the card has remained almost unchanged.
Compared to the first half of 2017, people withdraw cash less frequently. The average amount withdrawn by payment card users has increased. In the first six moths of 2018, the average amount withdrawn by card users was EUR 173. The average amount withdrawn in Latvia – EUR 136. As for countries of Europe’s economic zone, the average amount withdrawn from ATMs is almost twice as high – EUR 257. Compared to the last year, this amount has declined by EUR 22.
Outside the European Economic Area, the average amount withdrawn by payment card users from ATMs has increased by EUR 11 and reached EUR 201.
The payment card user has mastered various technologies: to confirm online payments via Verified by Visa (3-D Secure) and to pay for purchases up to EUR 25 at a touch by using VISA PayWay (PayPass) contactless technology. However, the user continues to withdraw cash. Is it just an old habit to have cash in the wallet?