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How important is cash in our day-to-day payments?

November 22, 2024

Cash is still the most widely used payment method in Spain, but its use has been declining in recent years as electronic payments become more popular. In 2023, cash accounted for 43% of all payments in Spain, down from 52% in 2019.

There are a number of reasons for the decline in cash use. One reason is the increasing popularity of electronic payments, such as debit cards, credit cards, and mobile payments. These payments are more convenient and secure than cash, and they can be used to make purchases online and in stores.

Another reason for the decline in cash use is the government’s efforts to promote electronic payments. In 2019, the government introduced a law that limited the amount of cash that could be used for certain types of transactions. This law was designed to reduce tax evasion and money laundering.

The decline in cash use has had a number of consequences. One consequence is that it has made it more difficult for people to make small purchases. For example, it is now difficult to buy a cup of coffee or a newspaper with cash.

Another consequence of the decline in cash use is that it has made it more difficult for people to save money. In the past, people would often save money by keeping it in cash. However, this is now more difficult to do, as there are fewer places to store cash safely.

The decline in cash use is likely to continue in the years to come. As electronic payments become more popular and convenient, cash will become less and less important. However, it is unlikely that cash will completely disappear. Cash will always be useful for certain types of transactions, such as those that are made in person or those that are made for small amounts of money.


How important is cash in our day-to-day payments?

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