Irish use of cash highest in EU

Irish people are still much fonder of cash than their European counterparts.

Irish people withdraw almost twice as much cash from ATMs as the average European.

However, a report from the Irish Payment Services Organisation also shows the popularity of cheques is continuing to decline, as card payments take their place.

Over €21bn was withdrawn from Irish ATMs in 2011. Although somewhat down from its peak during the height of the Celtic Tiger, Ireland remains the highest per capita user of cash in the EU.

The average European withdraws €2,600, while Ireland’s was just under €5,000.

The use of cheques peaked in Ireland in 2005 with almost 132m written, but since then their use has fallen by 36% to just 84m issued in 2011.

IPSO chief executive Pat McLoughlin said payment methods have been revolutionised over the last five years as all sectors of the economy moved to modern methods.

“Consumers, businesses and the public sector are continuing to move to modern payment methods.

“The cumulative impact of these changes over the past five years has been very significant. 40m fewer cheques are being issued per annum, the number of debit card transactions has increased by 14% and by 140% in the five years since 2006, while the number of credit card transactions climbed steadily with 340m transactions taking place, worth €23bn,” he said.

Part of the reason for the reducing cash figure may be down to the continued rise in the popularity of debit cards.

The number of debit card transactions increased by 14% in 2011 and have risen by 140% since 2006.

The number of debit cards issued is now 3.8m, up from less than 1m in 2006. The rise in the use of cards is expected to increase as Ireland’s two largest banks prepare to introduce contactless cards.

“These contactless cards allow lower value transactions [up to €15] to be processed by simply placing or waving the card near a payments terminal.

“This will significantly speed up point-of-sale transactions and give greater convenience to cardholders, reducing the need to carry coins and low denomination notes for day-to-day payment transactions,” IPSO said.