When packing for your European holiday this summer, don’t forget to pack your sunscreen, swimsuit and Kindle – but leave the cash at home.
This summer Europeans are saying “no” to cash, as new research from MasterCard revealed that holiday-goers prefer to reach for plastic when making payments.
Interestingly, MasterCard’s report indicated that the majority of Europeans even think having a card on hand during holiday trips was more important than having it at home. Ninety-one percent said they would rather pay with card over cash when traveling, compared to the 60 percent who claimed to have this preference at home. Moreover, 53 percent said they would like to make more purchase on card when away.
Why Not Cash?
Respondents cited various reasons for their inclination towards paying by card on holiday. The majority agreed convenience was the biggest reason, weighing in at 65 percent. Traveling around certain areas in Europe can be dodgy due to high rate of pick-pocketers targeting tourists, which is why 41 percent claimed the fear of cash being stolen was the second reason for card preference.
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Thirty-eight percent cited security, 37 percent not having cash on hand, 34 percent speed, and 30 percent reported using their card made it easier to track the trip’s expenses.
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Despite the 44 percent of respondents who believe cash will soon become obsolete in the shadow of new technology, 50 percent still think cash is the cheapest way to pay. However, a previous study from MasterCard that centered on the cost of German cash debunked this assumption. It turns out, German citizens, like those in many EU countries, pay a lot to sustain cash circulation. On average, a German consumer pays €150 a year for the ability to pay in cash.
No Time To Waste
According to Europeans, time is money – especially when on holiday. The survey indicated that 51 percent of travelers think spending time to find a cash point is a waste, and would rather be at the beach or enjoying the city. It’s hard to argue that point.
Twenty-nine percent went as far as saying they felt “lost” if they couldn’t pay for card while on holiday.
However, there are still exceptions, and in this case the majority of participants said they still feel uncomfortable paying for small purchases using their card. Europeans prefer to pay in cash for items such as postcards (85 percent), ice cream and other small snacks (84 percent), gratuity and tips (83 percent) taxis (77 percent) and lastly small souvenirs (61 percent.)
Jennifer Rademaker, head of core products Europe at MasterCard, commented on Europe’s cashless summer, “A cashfree way of life is becoming easier every day. European consumers clearly see the advantages of electronic payments on holiday and consequently want to use them more.”
Look below to view MasterCard’s inforgraphic on Europe’s NoCash Summer
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