The Rising Trend of Debit Cards Over Cash

This article was last updated on March 18, 2024

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A World of Debit Cards: Shunning Cash in Favor of Plastic

In the Netherlands, the trend of using debit cards over cash is increasingly becoming the norm at parking garages, pharmacies, and cinemas. A study conducted by the Locatus agency on behalf of De Nederlandsche Bank (DNB) has revealed that more and more of these establishments are adopting the policy of ‘pin-only’ or debit card-only transactions. Despite this rising trend, the total number of pin-only stores has remained relatively the same over the past year. The study was conducted at the end of the previous year and involved more than 5,100 shops, service providers, and market stalls. Findings show that around 25 percent of parking facilities switched from accepting cash to debit cards as the only form of payment, up from 16 percent the year before. Pharmacies showed a similar increase, rising from 12 to 16 percent. Cinemas were the highest on the list, with 27 percent of establishment enabling debit card-only transactions.

A Slight Shift in Libraries

An interesting observation from the study, however, is reverting to accepting cash in libraries. In 2022, around 16 percent of libraries had shifted their payment method back to accepting cash, up from 14 percent the previous year.

Security Concerns Driving the Debit-Card-Only Policy

The main force driving this trend towards a pin-only policy is the concern for security. Approximately four percent of entrepreneurs, which include retailers and service providers, have refused to accept cash due to the risk of robbery or burglary. Storeowners want to avoid having cash on hand for safety reasons. Another significant finding from the study reveals that about 30 percent of business owners fear their employees potentially stealing money from cash registers or safes. Moreover, 16 percent of these owners have stated that their customers favor paying via card, hence their decision to quit accepting cash.

Customer Friendliness: A Case for Cash

Despite the rising trend of debit card payments, many Dutch businesses acknowledge the need to provide excellent customer service, and this includes offering consumers choices such as the option to pay in cash. A majority of respondents pointed out that cash remains legal tender, and therefore, they should continue to accept it. Furthermore, the DNB expressed its concern over the rising number of pin-only stores last year. Several organizations, which include the big four Dutch banks and the Dutch Payments Association, echoed this sentiment. They promised to commit to preserving cash as an available payment option for at least the next five years, setting agreements on the number of ATMs and anti-money laundering measures.