Dutch cash payments fall sharply, DNB says

The Netherlands Bank says contactless payments have risen sharply in the country in the first half of 2020, as banks respond to the Covid-19 pandemic.

In April, cash payments fell to just 13% of total transactions, according to a study by the DNB and the Dutch Payments Association. At the start of 2020, cash accounted for 30% of total payments. By the end of June, it had partially recovered lost ground, but at 23% it was significantly below the levels recorded in late 2019.

The DNB says Dutch banks have facilitated contactless transactions by increasing the limit on them above which consumers must submit their personal identification numbers.

The decrease in cash usage is recorded among all age groups. However the trend is stronger among those between 12 and 34, and those over 65. The decline in cash usage has been less acute among those between 35 and 64.

The study also shows that total Dutch payments have recovered strongly in recent months. Although payments plummeted in the initial weeks of the pandemic, they rapidly increased.

By May the value of aggregate point-of-sale and online payments had recovered to 2019 levels, and in June it was recorded 15% above the values recorded in June 2019, says the study.