Since 2010 the Dutch Central Bank (DNB) has been conducting extensive payments surveys to its population. The bank asked over seven thousand people to keep a diary of all their payments, to better understand payment trends in the country. In 2010 the study revealed that around 5 billion cash payments were made in the country. Cash transactions for that year represented 65% of all point-of-sale transactions. However the study revealed that cash use is actually in decline – it fell 17% in the 2007-10 periods.
The decline of cash is in part explained by the rise of debit card use in the Netherlands. The number of debit card payments performed by the Dutch increased by 38% for that same three-year period. There are different factors that can explain this increase. The report points to the growth in the number of retailer accepting card payments and the decrease in the number of shops requiring customers to pay a surcharge to use cards for small amounts. Additionally, country-wide awareness-raising campaingns have been in place recently, to encourage Dutch consumers to make more use of their cards.
Nonetheless, cash remains strong. In addition to point-of-sale purchases, consumers conducted a total of 674 million cash transactions giving money to family, friends and charity. These transactions amounted to €8.6 billion. Additionally cash continues to be the payment of choice for small purchases – the average cash payment is just over €12. The Dutch also like to keep money in their pockets, with the average amount at €41.42. Only 7.5% of respondents claimed not to have any cash on them at the beginning of the survey.
When it comes to who uses which method cash is usually the preferred instrument of older population – similarly to other countries. People in the 65-75 age group pay for 70% of their purchases in cash while those in the 75+ category use cash for as much as 92% of their transactions.
Despite the rise of the debit card, the cash still holds its place as the Dutch’s favorite payment method.
Read the report here.
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