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Cash is used for just 12% of purchases in Ireland now, down from 33% before the pandemic

Bank of Ireland noted that this was a ‘stark’ change from the period preceding Covid19, during which cash accounted for one third of all transactions.

CASH MAKES UP just one in every eight euros spent in Ireland, new research has found. 

Figures from Bank of Ireland show a “stark” change from the period preceding the Covid-19 pandemic, during which cash accounted for one-third of all transactions.

The figures show a drop from 33% of all transactions being cash to just over 12%. 

The bank also said that ATM withdrawals have continued to decline. They were down 3.6% in the year to June.

Elsewhere, credit and debit card spending by Bank of Ireland customers was up 5.7% in June compared to the same month last year. This is well ahead of Consumer Price Index inflation at 1.8%.

The credit and debit card data suggests that consumer spending is expanding faster than Bank of Ireland’s current forecast for a 2.4% real gain, closer to the upwardly revised 2.9% seen last year. This reflects Ireland’s “rapid pace of job creation and pay growth” are driving consumer spending upwards.

“The figures indicate substantial real price adjusted gains for Irish households and little spending impact from US-tariff related uncertainty and the recent dip in consumer confidence,” a spokesperson for Bank of Ireland said. 

Holiday related spending and electrical goods have driven expenditure higher. Services spending grew by 5.6% in June year on year, while accommodation spending was up 4.3% on the year, and car rentals by 16%. Electrical goods sales were up 16%.

Clothing sales were down 2.1%.

Bank of Ireland’s Chief Economist Conall Mac Coille said of the figures, “Despite global uncertainties and a dip in consumer confidence, Irish households continue to spend confidently, supported by solid job creation and income growth. The shift away from cash also continues, with ATM withdrawals down and digital payments now dominating everyday transactions.”

The Central Statistics Office’s annual revisions to Ireland’s national accounts data revealed that consumer spending expanded at a substantially sharper 2.9% pace in 2024 (or 7% in nominal terms) than the 2.3% initially estimated.

The revision is consistent with other indicators such as the 7.3% rise in VAT receipts to €23bn in 2024 and 7.5% rise in gross household disposable incomes.

Household savings also remain strong – the latest Central Bank data shows household deposits grew by 6.5% to €165 billion in May, close to the fastest pace in seventeen years (excluding the pandemic period).

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