Europe is gradually moving away from cash, and faster than many would have expected. The new “Payments and Open Banking Survey 2025” by Strategy&, PwC’s strategy consulting arm, shows that in just six years, Europeans’ payment habits have changed fundamentally. While in 2018, 43 percent of consumers surveyed said they preferred to pay in cash when shopping or for services, by 2024 this figure will have fallen to just 23 percent.

The change is particularly evident in countries that have long been considered cash strongholds: between 2022 and 2024, the preference for cash fell by 19 percentage points in Germany, by as much as 23 percentage points in Spain, and by 14 percentage points in France. Austria is the only exception—according to the survey conducted at the end of 2024, cash is still the preferred means of payment there.

According to the study, the main reasons why people continue to prefer cash remain constant: many say they can only pay in cash, find it easier, or appreciate being able to keep track of their spending. Nevertheless, one thing is clear: cash is becoming a niche product. Strategy& expects cash preference to level off at between 10 and 20 percent in the future.

Source: Payments and Open Banking Survey 2025, p. 8

Debit on the rise

2024 marks a historic turning point: for the first time, debit cards are the preferred payment method among European consumers. According to a Strategy& survey, 40 percent of respondents prefer to use debit cards, followed by 23 percent who continue to pay with cash. Credit cards (22 percent) and mobile wallets (14 percent) follow in second and third place.

There are clear demographic differences:

• Women prefer debit cards significantly more often than men.
• Men, on the other hand, are more open to credit cards.
• Younger consumers (aged 18–34) are the most frequent users of mobile wallets such as Apple Pay or Google Pay.
• And low-income earners remain disproportionately loyal to cash payments.

The debit card is thus becoming a symbol of everyday digital life: fast, easy, and available everywhere. Contactless payments and integration into wallets in particular are accelerating its triumphant advance.

Era of super apps

In addition to traditional banks, new players are entering the payments market and rapidly gaining importance. As the study shows, non-traditional providers such as Apple Pay, PayPal, and Revolut have “gained massive reach” and are beginning to supplant banking relationships.

According to the study, digital wallets are taking over key payment functions, from everyday shopping to bank transfers, thereby establishing a new customer interface. Apple Pay, with over 740 million users, PayPal, with 430 million, and Revolut, with 45 million, are among the dominant platforms.

The strategy of these players is clear: they no longer position themselves solely as payment methods, but as multifunctional financial platforms offering peer-to-peer (P2P) payments, credit functions, cashback, insurance, and investment opportunities. Strategy& refers to this as a “super app ambition – for Europe too.”

“Digital euro”: Between curiosity and uncertainty

Another key topic is central bank digital currency (CBDC), in particular the “digital euro.” Strategy& asked consumers in eurozone countries whether they could imagine using a digital version of the euro. The results are mixed:

• 37 percent of respondents have never heard of the digital euro,
• 11 percent know him but “don’t know enough to judge”,
• 18 percent would use it instead of cash,
• a further 16 percent instead of digital payment methods such as cards or PayPal,
• and 18 percent would rather not use it.

This shows that the “digital euro” is still a concept that needs further explanation. But the potential is there. After all, even today, long before its possible introduction, a third of those surveyed can imagine using it.

The desire for an overview

A key finding of the study: Consumers want a central platform where they can keep track of all their finances, from accounts and credit cards to pension entitlements.

Almost all of the markets surveyed show the same trend: “Simplicity and clarity” are more important than additional services. Only bonus programs or special offers meet with broader approval, while features such as loans or invoice managers are significantly less relevant.

This goes hand in hand with a growing openness to open banking: 63 percent of respondents are willing to share their financial data if they receive clear benefits in return—such as personalized offers, rewards, or additional services.

However, there is a clear gap in terms of trust:

• Traditional banks enjoy the highest level of trust at 51 percent.
• Payment service providers (PSPs) follow with 37 percent,
• FinTechs and neobanks lag behind at 20 percent.

It is also interesting to look at individual countries: Turkey, Spain, and the United Kingdom in particular show a high willingness to share data, with approval ratings of up to 80 percent.

Banks under pressure

What once seemed unthinkable is becoming reality: more and more people can imagine opening an account with a non-bank provider. Between 2022 and 2024, willingness to do so rose from 43 percent to 70 percent on average.

The most attractive “bank alternatives” include:

• PayPal (48 percent),
• Google (27 percent),
• WhatsApp (22 percent),
• Apple (20 percent),

while 30 percent say they do not want to open an account with any of these providers.

The motives are clear: price, rewards, and convenience. According to the study, 38 percent of respondents would switch because of more favorable terms, 35 percent because of rewards programs, and 29 percent for reasons of convenience. Only a quarter (26 percent) fundamentally reject switching to non-banks.

At the same time, expectations of banks are shifting. In 2025, the “quality of the mobile banking app” will be the most important criterion when choosing a bank for the first time – ahead of free accounts or low fees for cash withdrawals.

“The banking app has now become the most important factor in the banking experience, replacing free/low-cost cash withdrawals as the top priority. The proximity of branches has continued to decline in importance for consumers.” (p. 14)

This sentence sums up the situation: traditional branches are losing their importance, and apps are becoming the real face of banks. According to the study, only in France does proximity to branches still play a significant role.

Four areas of action for the future

Strategy& derives four key areas of action from the results that banks, payment service providers, and fintech companies should consider:

1. Ensuring competitiveness with non-bank offerings:
   According to Strategy&, banks should strengthen their own apps and wallets so as not to lose relevance to Apple Pay or Revolut. At the same time, the study recommends entering into targeted partnerships with major wallet providers in order to maintain access to the customer interface.
2. Targeted use of open banking data:
   Data from open finance could be used for personalized offers, next-best-action recommendations, or financial planning services. This opens up new sources of revenue and improves the customer experience.
3. Rethinking access to cash:
   Despite the dominance of digital technology, access to cash remains a social issue. Strategy& suggests solutions such as ATM partnerships between banks, collaborations with retailers for cash withdrawals, or the integration of digital alternatives such as CBDCs.
4. Develop country-specific strategies:
   The study emphasizes that payment preferences and digital maturity vary greatly: from wallet-driven markets such as Spain to locally dominated systems such as Switzerland. Successful providers adapted their offerings to local characteristics and regulations.

Digital everyday life is becoming the norm

The study shows that payment behavior in Europe is at a historic turning point. What was only emerging in 2018 will be reality in 2025: digital payments have become the new normal. Cash remains where it is pragmatic, such as for small amounts or budget control. But across the board, everyday life is clearly shifting toward debit cards, wallets, and data-driven platforms.

The results clearly show that consumer confidence, habits, and expectations are shifting away from physical structures and toward intelligent, personalized digital ecosystems. For banks and payment providers, this means they must innovate faster, cooperate more closely, and redesign their customer interfaces digitally.

Cover image: © Vladimir

Sources:

PwC Strategy& “Payments and Open Banking Survey 2025,” May 2025. Available at: https://www.strategyand.pwc.com/de/de/presse/open-banking-and-payments-survey-2025.html [as of October 2025].