The financial technology and payments sectors have been under pressure this year as growth normalizes. Concerns also remain that competition may pressure margins. Nevertheless the trend toward digital finance continues. For instance, in the EU, despite the prevalence of smart phones and debit cards, cash remains the most frequent payment method at point of sale. According the European Central Bank, in 2022 cash was used in 59% of transactions, down from 72% in 2019. Adjusting for the value of transactions at point of sale, cash accounted for 42% of sales versus 47% in 2019. Within the EU, payment trends vary widely with cash accounting for 65% of payment value in Malta versus 12% in Finland.
Source: European Central Bank, December 2022