Cash spending falls by a third

THE Covid-19 pandemic has accelerated the move towards a cashless society – as cash payments here are down almost a third on pre-lockdown figures.

And unsurprisingly, cashpoint withdrawals plummeted by half during lockdown, down 42% on pre-pandemic levels, research by digital bank N26 found.

The digital bank’s own data revealed that online and offline spending is up 32% since the lockdown was eased.

Finance consumer expert Brendan Burgess, of Ask About Money, said of the trend: ‘It’s no surprise... The last time I [used cash] was in a restaurant to leave a tip to make sure the waiter gets it and it doesn’t disappear in the card system.

‘I bought milk today, €1.50, I flashed my card. It’s so much easier.’

Card transactions, meanwhile, are back to pre-lockdown levels, bringing the share of payments made by card from 54% to 59%.

The average amount per card transaction went up by €7 – a 35% increase – compared to pre-lockdown spending, the data shows.

The average transaction value from online and offline spending is up by €6 – 19% – on pre-lockdown levels to €37.

Paying by cash fell dramatically as a result of the pandemic, with postlockdown cash volumes down 30% on pre-lockdown figures.

Meanwhile, there was a 17% increase in the number of e-commerce transactions among 55 to 65-year-olds during the lockdown, with many becoming more accustomed to this method due to lockdown restrictions.

Before, during and after the most recent phase of lockdown was lifted, Irish women spent an average of 80% less than men. Despite shops reopening, online spending has increased 7% post lockdown compared to before it.