The slow decadence of coins and bills: Spaniards use less effective and pay lower amounts

Cash money has less and less followers. It was already happening for some time and the pandemic has accelerated it. Only in 2020, the use of coins and ticke

The slow decadence of coins and bills: Spaniards use less effective and pay lower amounts

Cash money has less and less followers. It was already happening for some time and the pandemic has accelerated it. Only in 2020, the use of coins and tickets as a preferred payment method collapsed from 53% to 35.8%, although the fall is much higher if it is taken into account that in 2014 that percentage brushed 80%. In full digital career, the decline of physical money is slow but it seems unstoppable.

Faced with these data, 54.1% is decanted by the debit card as a preferred means of payment, fundamentally because they consider it more comfortable and faster, according to the national survey on the use of the cash that the bank of Spain with data from 2020. Its conclusions allow you to verify the progress of digital payment forms and above all the impact of the pandemic in the behavior of citizens and companies in our country.

The Coronavirus and in particular the risk of contagions caused that last year 2.5% of the population, stop using cash for hygiene reasons. "The habit of payment with cash has fallen especially from the confinement period by the COVID-19, largely by the stimulus in favor of other means of payment exerted by almost half of the shops, as well as by the derived hygienic measures From the health alert, as it manifests 61.2% of the population, "says the survey.

69.1% of citizens and 61.3% of establishments that have modified their habits aim to keep them in the near future and, in this sense, up to 40% of the people interviewed foresee or increase the Use of means of payment linked to new technologies, compared to 24% declared this intention in 2019.

But not only fewer cash is used, but increasingly we paid with it lower amounts. If before 2020 the threshold from which it was preferred to use the cash card was 106 euros, the year of the pandemic reduced that amount by half, so that Spaniards prefer to save the tickets and pull card from The 52 euros.

It has also been influenced that establishments have been offered more and more facilities for the use of plastic money or other alternative means. "The amount of sales charged in cash is around 30%, lower than the average declared by the population," says the Bank of Spain.

84% of businesses, no longer impose any restriction to pay with a card and 16% maintain a minimum payment established on average of 11 euros.

One of the questions posed by the career for digital money is whether it will cause the definitive disappearance of coins and bills or if citizens will continue to consider effective cash. The Bank of Spain has asked the respondents precisely for the utility and all the groups believe that it is still useful to exist, "fundamentally to keep the prices adjusted".

52.5% of citizens discriminate or do not accept the coins of 1 and 2 cents at all; However, there is still 65.9% that opposes a possible rounding, arguing its possible impact on the rise in prices.

On the opposite side, 51.9% of traders and hotels admit practicing and rounding to avoid the use of smaller currencies. For its part, those responsible for the large surfaces interviewed believe that the supply of means of payment must meet the needs of each client and are not very favorable to the rounding of the peaks to multiples of 5 cents.

Reality is imposed, above all, in the portfolio and that is where the vast majority of citizens have clear their preferences. 88.5% carries, at a lot, five banknotes in their portfolio (70.6% do not have more than 50 euros in total), while 72.7% of the population does not carry more than 5 coins (which normally They do not suppose more than 5 euros).

With respect to high-denomination tickets, 89.4% of the public has not had a bill of 200 euros or 500 euros in their hands in the last year, and 56.2% of merchants rejects in collection 100, 200 and 500 euro tickets, mostly due to lack of change.

A final curiosity in this aspect is that almost half of the respondents, 47.9%, keep out of their bank amounts greater than 500 euros.

Updated Date: 25 July 2021, 06:37

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