Ninety-two percent of companies across the euro area currently accept cash, yet a growing shift toward digital and automated payment methods threatens to undermine the everyday viability of physical money.
Retail Automation Squeezes Out Banknotes
The Frankfurt-based central bank published findings showing that while retail stores, restaurants, and hotels largely maintain cash acceptance policies, automation within the retail sector is quietly reducing the convenience of physical banknotes and coins. Central bank officials warn that without proactive policy measures from regulatory authorities, the gradual phase-out of cash-friendly terminals could distort consumer perceptions and isolate populations that rely on physical currency.
The survey captured data from 8,205 businesses across the 21 euro countries between February 23 and April 10, 2026, detailing a rapidly modernizing commercial landscape. While 92 percent of respondents reported accepting cash at the time of the poll, businesses are increasingly reconfiguring their point-of-sale infrastructure to prioritize digital transactions. According to the data, one-quarter of surveyed firms have invested in automated checkouts or reduced the number of staffed registers that handle physical money.
Self-Service Kiosks Block Cash Payments
Furthermore, 13 percent of businesses have installed self-service kiosks. Among those automated checkout systems, nearly half—48 percent—refuse cash entirely, restricting consumers to card or digital device payments. As reported by t-online.de, the central bank cautioned that even when companies officially claim to accept cash, limiting its use at modern automated terminals diminishes the overall convenience of physical payment, potentially signaling to shoppers that banknotes are unwelcome.
The central bank’s analysis emphasizes that maintaining a diverse ecosystem of payment options is vital for financial inclusion. “To ensure a broad acceptance of cash, it is crucial to ensure that the increasing automation of payment transactions does not unintentionally hinder or undermine cash as a viable payment option,” the European Central Bank stated.
Deep Regional Divides Emerge Across the Euro Area
Regional variations highlight stark differences in how merchants view the future of physical currency. While 92 percent of businesses accepting cash intend to continue doing so over the next five years, certain nations display a much higher inclination to phase out banknotes. In Cyprus, 51 percent of survey participants indicated they might stop accepting cash in the coming years. Similar hesitation appeared in Greece at 23 percent and Bulgaria at 18 percent. By contrast, in Germany—where 904 companies participated in the study—fewer than 10 percent of businesses reported plans to abandon cash acceptance.
Mobile Payments Double as Card Use Holds Steady
Data regarding alternative payment methods reveals stable card acceptance alongside a massive surge in mobile device transactions. Traditional card payment acceptance remained steady at 88 percent, mirroring figures from a previous European Central Bank study conducted in 2024. Meanwhile, businesses allowing mobile payments via smartphones or smartwatches nearly doubled, jumping from 36 percent in 2024 to 68 percent in 2026.
To counteract the risk of cash marginalization, the central bank has called on policymakers to implement safeguards. “The competent authorities must act proactively with their policies and measures to ensure that euro banknotes and coins remain an attractive and accepted means of payment in all countries and sectors in the coming years,” the central bank urged.