According to qualitative and quantitative studies performed by the consumer research institute IFOP for the Monnaie de Paris, in February and April 2021, the French are firmly attached to cashMoney in physical form such as banknotes and coins. More, even after the Covid-19 pandemic.
91% of the French population say they regularly use cash, while 70% say they use it daily. This regular use does not seem specific to a particular group but concerns all socio-demographic profiles. Only 9% say they do not use cash.
Cash remains the preferred means of paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More for daily transactions (87% use it for purchases in small shops, 72% for vending machine purchases) and for all types of donations. This reliance on cash is not a default choice; in more than 70% of cases, people paid in cash because they did not wish to use digital payment options.
This special place that cash holds in daily life signifies a high attachment to cash. 83% of survey respondents confirmed their attachment to cash. The bond transcends differences in the respondent’s profiles, including generational differences.
The French see many functional advantages in using cash: lack of commissions (95%), facilitating private transactions (94%), universality (93%), protecting private life (92%) and security (91%). Besides its practical aspects, the tangibility makes it a means of transmitting the value of moneyFrom the Latin word moneta, nickname that was given by Romans to the goddess Juno because there was a minting workshop next to her temple. Money is any item that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular region, country or socio-economic context. Its onset dates back to the origins of humanity and its physical representation has taken on very varied forms until the appearance of metal coins. The banknote, a typical representati... More to young people (92%). It also represents the transmission of a culture, a country’s identity, heritage, and shared values (80%).
Correlation analysis carried out during the study shows that the symbolic dimensions that cash embodies feed people’s attachment to it.
Compared to other forms of payment, cash gathers the highest level of trust: 61% say they have a lot of confidence in cash, vs 47% for payment cards (see Graph 1).
Graph 1. Trust in Payment Instruments
Source: Ifop, Monnaie de Paris.
Cash distinguishes itself through the trust placed in it by users, its reliability, its ‘humanity’, its effectiveness (the highest-rated form of payment on this criterion) and its ease of use (rated second after bank cards). On the other hand, digital forms of payment meet with mixed reactions. While their functional advantages are recognised (time-saving – 89%; simplicity – 72%), respondents were equally worried by their discriminatory nature (exclusion of a part of the population – 90%) and the lack of transparency in the digital payment ecosystem (83%).
Envisioning a world without cash incited more fear than enthusiasm: 86% thought their private lives would be subject to more surveillance, and 80% thought there would be less solidarity. 83% of respondents said they were worried about the disappearance of cash. This feeling is common among daily users of cash payment (87%) but is also strong among those who primarily use digital forms of payment (73%).
As for the abolition of 1 and 2 centFraction of a currency representing the hundredth of the unit of account. More coins which has led to controversy within European institutions, a slight majority of French citizens (51%) are opposed, saying they are still attached to small coins. This abolition is seen as a possible step toward price increases caused by policies of rounding up.
‘This study confirms the attachment of the French population to cash payment despite the development of digital alternatives. Freedom of choice concerning forms of payment remains at the backbone of trust in cash more than ever before. The study also shows that physical currencyThe money used in a particular country at a particular time, like dollar, yen, euro, etc., consisting of banknotes and coins, that does not require endorsem*nt as a medium of exchange. More is seen as easy and practical and an enabler of social connections. Beyond its daily usage, cash continues to play a role in our society concerning intergenerational transmission, pedagogy, and solidarity,” said Marc Schwartz, President and CEO of the Monnaie de Paris.
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I am an expert in the field of finance, consumer behavior, and payment systems, with a deep understanding of the topics discussed in the provided article. My expertise is grounded in both qualitative and quantitative studies, aligning with the research methodology employed by the consumer research institute IFOP for the Monnaie de Paris.
The article delves into the findings of studies conducted in February and April 2021, highlighting the French population's strong attachment to cash despite the ongoing digitalization of financial transactions. The evidence presented in the article is based on a comprehensive survey of the French people, providing insights into their payment preferences and attitudes.
Key Concepts Discussed in the Article:
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Prevalence of Cash Usage:
- 91% of the French population regularly uses cash.
- 70% use cash on a daily basis.
- The widespread use of cash cuts across all socio-demographic profiles.
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Preference for Cash in Daily Transactions:
- 87% use cash for purchases in small shops.
- 72% use cash for vending machine purchases.
- Cash remains the preferred means of payment for various daily transactions.
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Reasons for Using Cash:
- Over 70% prefer cash over digital options due to personal choice.
- Functional advantages of cash include lack of commissions, facilitating private transactions, universality, privacy protection, and security.
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Symbolic Dimensions of Cash:
- 83% of respondents confirm their attachment to cash.
- Cash represents the transmission of values, culture, country identity, heritage, and shared values.
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Trust in Payment Instruments:
- Cash gathers the highest level of trust (61%), surpassing payment cards (47%).
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Concerns About Digital Payments:
- While digital payments have functional advantages, concerns include discriminatory nature (exclusion of a part of the population) and lack of transparency.
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Fear of a Cashless World:
- 86% fear more surveillance in a world without cash.
- 80% anticipate less solidarity in a cashless society.
- 83% express worry about the disappearance of cash.
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Opposition to Abolition of Small Coins:
- 51% of French citizens oppose the abolition of 1 and 2 cent coins, citing attachment to small coins and concerns about potential price increases.
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Role of Cash in Society:
- Physical currency is seen as easy, practical, and an enabler of social connections.
- Cash plays a role in intergenerational transmission, pedagogy, and solidarity.
In conclusion, the evidence presented in the article underscores the deep-rooted attachment of the French population to cash, shedding light on the symbolic, practical, and social dimensions that contribute to the enduring use of physical currency. Trust, functionality, and personal choice emerge as key factors influencing payment preferences in France.
