Paying with cash is becoming an increasingly exotic act, a quarter of Czechs carry only change in their pockets, and three percent have completely disdained cash.
We strongly prefer paying by card, whether it is a traditional plastic card or a card loaded on the phone. QR codes are also very popular, 74 percent of Czechs already use them. Contact payments, which allow you to send money based only on the recipient’s phone number, are not used much yet, and only one in ten Czechs has experience with them.
Although the popularity of virtual cards in phones and other smart devices is gradually increasing, the number one choice remains the physical plastic card. 55 percent of Czechs prefer it. This does not apply to the young generation between the ages of 18 and 24. Almost three quarters of young people prefer to use Apple Pay or Google Pay when paying.
This follows from the latest results of the Prosperity and Financial Health Index of Česká spořitelna, Europe in Data and the Institute of Sociology of the Academy of Sciences.
Index of the financial health of the Czechs
The Financial Health Index is a joint project of Česká spořitelna, the Institute of Sociology of the Academy of Sciences of the Czech Republic and the data portal Europe in data. Its goal is to continuously analyze the level of financial health of the residents of the Czech Republic in selected areas. This year they are:
The project draws data primarily from regular sociological surveys of a representative sample of the population (data collection is carried out by the Ipsos agency) and data sources of the Institute of Sociology of the Academy of Sciences of the Czech Republic and Česká spořitelna. The Index of Financial Health is part of the long-term research Index of Prosperity and Financial Health, which is carried out by Česká spořitelna and the data portal Europe in data.
List News is a media partner of the Financial Health Index.
We also prefer card payments when shopping abroad, even over cash payments in the currency of the country we are visiting. Why? It’s all about comfort. Payment is quick and easy, at the same time we don’t have to look for change and convert cash.
However, as Monika Hrubá from Česká spořitelna says, security also plays a role here. “In case of loss, the payment card can simply be blocked or the limit for payment can be reduced to zero, while we will usually not see the stolen cash anymore.”
Banking on the phone also has other advantages, the application clearly shows all expenses that can be easily categorized. “And the mobile application will also help if there is a problem with the delivery of goods or services. Our clients can request help with a complaint solution with a few clicks, and we will process it all for them,” says Monika Hrubá, who is responsible for the strategy of financial health and customer experience at Česká spořitelna.
The European Central Bank’s 2022 survey of consumer payment behavior in the euro area pointed to the fact that there are large differences between European countries. Card payments account for 34 percent of all consumer purchases in the euro area.
But while the preference for cashless payments prevails in Finland, the Netherlands and Luxembourg, for example in Malta, in Slovenia or Austria there is a great preponderance of cash transactions.
“Although the data of the European Central Bank do not include the Czech Republic, they indicate to a certain extent that Czechs rank above the European average with their preference for using payment cards,” notes Kamila Fialová, an economist from the Institute of Sociology of the Academy of Sciences of the Czech Republic.
“Payment by card” is a broad term, as Tomáš Odstrčil, editor-in-chief of Europe in data, further explains. If Czechs have to choose, in 55 percent of cases they prefer a standard plastic card.
“In contrast, 36 percent of respondents choose a card stored in their phone, less than three percent of Czechs rely on smart watches, and less than one percent of Czechs choose to pay with rings or bracelets,” Odstrčil describes how Czechs adopt modern technology.
While the use of so-called “wearables”, i.e. wearable electronics, remains in the single percent units across most demographic groups, there is an obvious difference between the generations for cards loaded on the phone.
“With increasing age, the preference for paying by phone decreases, but even among the elderly, card payments continue to prevail over cash,” says Odstrčil.
Do we need cash?
How much do we have in our wallet?
- 58% of Czechs have at most a few hundred crowns in cash
- 25% of Czechs only carry change
- 3% of respondents revealed that they do not carry any cash with them at all
- 8% of the respondents choose banknotes only for specific places where they know they will not go without cash
Currently, the obligation to accept cash applies in the Czech Republic
- 25% of Czechs think that the obligation to accept cash should be abolished
- 71% of Czechs think that merchants should be obliged to accept card payments
Many supporters have not yet received so-called contact payments, where the payer only needs to know the recipient’s phone number to send money. The only obstacle is whether the recipient also has the service activated. It is a service that Czech banks launched only in the fall of last year, and so far only 11 percent of Czechs have experience with it, mainly young people use it. Up to 18 percent have not even heard of it yet.
“Since the launch of the Contact Payment service, less than 115,000 Česká spořitelna clients have registered to use it, however, only around 32,000 of them have actively used it in the last thirty days,” explains Monika Hrubá.
According to her, one of the reasons why the service has not yet found such popularity among the Czechs is QR codes, which can be easily created and shared through the mobile banking application. “Today, the vast majority of payments take place immediately, so you can immediately check on your mobile if the payments have arrived in order,” notes Hrubá.
Card payment is also the number one choice in online stores, by a wide margin. A total of 60 percent of Czechs prefer it. Bank transfer came in second place with 12 percent of survey respondents preferring it. As the age of the respondents increases, the popularity of online payments decreases, and although they remain in first place, not only bank transfers but also cash on delivery payments are strengthening at their expense.
When shopping at e-shops, security comes into play more than convenience. Mainly because of it, almost two-thirds of Czechs do not save their payment information in e-shops. The most common fear is that the e-shop could be attacked by a hacker, but 40 percent of Czechs also fear that the data could be misused by the merchant himself.
According to Monika Hrubá, the safest alternative is the use of disposable virtual cards. “They are ideal cards for paying on the Internet. After payment or within 60 minutes at the latest, they cancel themselves and no one else can use them,” explains Hrubá.
Czech Cash Conundrum: Is Cash Still King?
Ladies and gentlemen, gather around! Buckle up your wallets because we’re diving into the dazzling world of cashless payments in the Czech Republic. That’s right—paying with cash is now as rare as finding a unicorn at a Prague pub! A staggering 25% of Czechs are rolling around with mere change, while a bold 3% have completely ditched cash. That’s right, folks! Who needs good old-fashioned paper when you can just wave your phone and feel like you’re in a sci-fi movie?
Cards, QR Codes, and Contact Payments—Oh My!
It turns out that Czechs have a love affair with their cards—plastic or digital! According to the latest results from the Prosperity and Financial Health Index of Česká spořitelna, a whopping 74% are embracing QR codes like it’s the hottest trend since avocado toast. And contact payments? Well, it’s like trying to sell ice to Eskimos—only 10% of Czechs have dipped their toes into those waters. Talk about a lukewarm reception!
Who Needs Cash Anyway?
When it comes to international shopping sprees, our Czech friends prefer the comfort of their plastic pals over battling with foreign coins. It’s faster, easier, and let’s not forget—no fumbling in your pocket like a pubescent teenager trying to find change for a vending machine! But our friend Monika Hrubá from Česká spořitelna reminds us that security’s on the menu too. If you lose your card, boom! Blocked. If you lose cash? Well, that’s a one-way ticket to ‘Good Luck City!’
Who’s Paying What?
Interestingly, 55% of Czechs still cling to their plastic cards like it’s their childhood teddy bear. But hold your horses—when you look at the youth between 18 and 24 years old, it’s a wild 75% opting for Apple Pay or Google Pay! Is it me, or does that make me feel positively ancient? I remember a time when “going digital” meant you had a flip phone!
Do We Even Need Cash?
Here’s a fun fact for you: 58% of Czechs walk around with a few hundred crowns. Meanwhile, 25% are just swaggering around with a handful of coins like they’re auditioning for a role in a busker troupe. And get this—3% don’t carry any cash at all. I can just see them strutting into shops like, “Want a tip? I’ll pay you in vibes!”
Cash Obligation: Should It Stay or Should It Go?
Now, here’s the kicker. Despite the growing disdain for cash, around 71% of Czechs believe businesses should be obliged to accept card payments. Meanwhile, 25% think the obligation to accept cash should be history. Maybe a cashless future isn’t as far off as we think. It’s as if cash is the dad joke of payments—nobody really wants to hear it, but we all feel awkward throwing it out!
Online Payments: A Digital Embrace
Let’s not forget online shopping! 60% of Czechs are using cards for their virtual baskets. But wait—there’s more! Despite their tech-savvy tendencies, almost two-thirds don’t save their payment information in e-shops. Why? Fear of hackers! “What if they steal my data?” they cry, while clutching their physical cards like they’re about to pop the question at a fancy dinner. It’s all very gripping, really.
Concluding Thoughts: Is Cash on the Way Out?
So, what’s the takeaway from this cash conundrum? It seems that cash is about as popular as a lukewarm beverage at a party. With Czechs embracing cards, QR codes, and digital wallets in increasing numbers, cash may soon find itself reminiscing about the good old days of “clink and clank.” The question remains—will cash make a triumphant return, or are we looking at a cashless future? Only time, and perhaps another financial index, will tell!
And remember, folks, whether you’re paying by card, code, or cash—you still need to tip your bartender. Cheers!
Paying with cash is becoming an increasingly rare phenomenon in the Czech Republic, with a notable 25% of the population carrying only coins in their wallets. Surprisingly, a small segment, roughly 3%, has completely abandoned the use of cash altogether.
The overwhelming preference among Czechs is for card payments, with many choosing traditional plastic cards or digital wallet options available on their smartphones. QR codes have surged in popularity, with 74% of Czechs utilizing them for transactions. Interestingly, contact payments, which require only the recipient’s phone number, have not gained significant traction, as only about 10% of the population has tried this method.
While virtual cards on mobile devices are gradually gaining acceptance, the standard plastic card remains the favored choice for 55% of Czechs. This trend shifts dramatically among younger individuals aged 18 to 24, with nearly 75% preferring Apple Pay or Google Pay for their transactions.
These insights emerge from the recent findings of the Prosperity and Financial Health Index compiled by Česká spořitelna, Europe in Data, and the Institute of Sociology of the Academy of Sciences.
Index of the financial health of the Czechs
The Financial Health Index represents a collaborative initiative between Česká spořitelna, the Institute of Sociology of the Academy of Sciences of the Czech Republic, and the informative platform Europe in Data. Its primary aim is to continuously assess and analyze the financial well-being of Czech residents across various sectors.
The project primarily relies on data sourced from regular sociological surveys conducted by a representative sample of the population (facilitated by the Ipsos agency) and data resources provided by the Institute of Sociology of the Academy of Sciences of the Czech Republic and Česká spořitelna. The Index of Financial Health is a significant part of the long-term research initiative titled the Index of Prosperity and Financial Health, undertaken by both Česká spořitelna and the Europe in Data portal.
We also prefer card payments when shopping abroad, even over cash payments in the currency of the country we are visiting. Payment is quick and easy; we don’t have to look for change and convert cash.
However, as Monika Hrubá from Česká spořitelna remarks, security is another significant factor influencing this preference. “In the event of loss, a payment card can be blocked effortlessly or its limit can be set to zero, whereas stolen cash is typically unrecoverable.”
Banking through mobile applications presents additional benefits, as these platforms clearly outline all expenses, making categorization straightforward. “In cases where there are issues with the delivery of goods or services, our app enables clients to request support for complaint resolution with just a few taps, ensuring a smooth process,” states Monika Hrubá, who’s in charge of the financial health strategy and customer experience at Česká spořitelna.
According to a 2022 survey by the European Central Bank regarding consumer payment preferences in the eurozone, stark differences in payment behavior are evident among European nations. Card payments make up approximately 34% of all consumer purchases across the euro area.
While cashless payments are favored in Finland, the Netherlands, and Luxembourg, countries like Malta, Slovenia, and Austria still exhibit a strong inclination towards cash transactions.
“Although the European Central Bank’s data does not encompass the Czech Republic, it suggests that Czechs tend to favor payment cards more than the European average,” points out economist Kamila Fialová from the Institute of Sociology at the Academy of Sciences of the Czech Republic.
“Payment by card” broadly encompasses various forms, as Tomáš Odstrčil, editor-in-chief of Europe in Data, elaborates. In direct choices, 55% of Czechs prefer the traditional plastic card.
“Conversely, 36% opt for a card stored on their phone, with fewer than 3% relying on smartwatches, and under 1% utilizing rings or bracelets for payments,” Odstrčil explains, highlighting Czechs’ adaptation to contemporary technology.
While the integration of wearable technology into the payment process remains limited, there is a marked generational divide concerning preferences for mobile card payments.
“As age increases, the likelihood of preferring payment by phone decreases, yet among all age groups, card payments continue to surpass cash transactions,” Odstrčil reveals.
Do we need cash?
How much do we have in our wallet?
- 58% of Czechs have at most a few hundred crowns in cash
- 25% of Czechs only carry change
- 3% of respondents revealed that they do not carry any cash with them at all
- 8% of the respondents choose banknotes only for specific places where they know they will not go without cash
Currently, the obligation to accept cash applies in the Czech Republic.
- 25% of Czechs think that the obligation to accept cash should be abolished
- 71% of Czechs think that merchants should be obliged to accept card payments
Many supporters have not yet received so-called contact payments, where the payer only needs to know the recipient’s phone number to send money. The only obstacle is whether the recipient also has the service activated. A service launched by Czech banks only last fall, a mere 11% of Czechs have experimented with it, primarily among the younger demographic. Alarmingly, up to 18% are not even aware of its existence.
“Since the launch of this Contact Payment service, fewer than 115,000 clients of Česká spořitelna have registered for it; however, only around 32,000 have actively used it within the last month,” clarifies Monika Hrubá.
According to her, one reason for the service’s limited popularity is the convenience of QR codes, which can be easily created and shared through mobile banking applications. “Most transactions are processed immediately, so users can quickly verify if payments have arrived correctly,” Hrubá adds.
Card payment represents the preferred method for online shopping, with 60% of Czechs choosing it over all other options. Bank transfers come in second, preferred by 12% of respondents. As the age of respondents increases, the preference for online payments diminishes, yet card payments maintain their lead while cash on delivery alternatives are gaining traction.
When engaging in online shopping, security concerns often outweigh convenience for many consumers. Due to this, almost two-thirds of Czechs refrain from saving their payment information on e-commerce platforms. The most prevalent fear is the potential for cyber attacks on e-shops, with 40% of Czechs also expressing concern about possible misuse of their data by merchants.
According to Monika Hrubá, the safest option is utilizing disposable virtual cards. “These cards are ideal for online transactions. Once a payment is made, they either automatically self-cancel or expire within an hour, rendering them unusable by anyone else,” Hrubá concludes.
What are the main benefits of switching to digital payment methods for consumers in the Czech Republic?
Embraced this payment method. It’s clear there’s still some hesitation about new technologies, even as digital payments are gaining traction.
The landscape of payments is changing rapidly, and it’s becoming increasingly evident that the Czechs are leaning towards convenient digital solutions. The statistics paint a picture of a society that’s ready to embrace a cashless future, where speed and security take precedence over the clinking of coins.
The Future of Payments: A Transition to Digital
As we navigate this transition, it’s essential to recognize the implications of this shift. If cash truly does take a backseat, businesses might need to adapt their models to cater to a clientele that expects a seamless and modern payment experience. With the percentage of Czechs using digital wallets and card payments on the rise, it’s safe to say that we are stepping into a new era of financial transactions.
while cash may hold a sentimental place in many hearts, it seems to be losing its grip on our wallets. With Czechs pining for the ease of digital payments and the majority advocating for card acceptance, the future is bright, albeit cashless. Let’s just hope that when the day comes to ditch the cash for good, we won’t have to listen to the nostalgic woes of coins being tossed aside. Until then, tip your bartender and keep that card handy!
