Ireland Set to Embrace Digital Euro Adoption, Despite Cash Usage Remaining High

BearingPoint Study Reveals 48% of Irish consumers set to use Digital Currency for online shopping purposes

While cash remains the most frequently used payment method in Ireland, a new BearingPoint study reveals a significant shift towards digital payment solutions.  In particular, nearly a quarter (24%) of Irish consumers are already indicating their willingness to embrace the digital euro initiative, with multiple transactions expected per week when introduced.  This finding comes from the latest BearingPoint European Payment Study, which surveyed over 10,000 consumers across nine countries, including Ireland.

The study highlights Ireland's position at the forefront in its willingness to adopt the digital euro, particularly for online shopping. 48% of Irish respondents identified online shopping as their primary use case for the digital euro, surpassing the European average (37%) and placing Ireland ahead of countries like Germany (38%).

Despite the rise in digital payment adoption, cash remains a dominant force in Ireland, reflecting a trend seen also in German-speaking countries. The study does however indicate a gradual decline in cash usage in Ireland, from 61% in 2023 down to 59% in 2024, creating an opportunity for digital currencies like the digital euro to gain traction.

Overall, the use of cash is declining in Europe as the survey reveals that the frequency of cash usage has declined in almost all surveyed countries compared to the previous year. Awareness of the digital euro has been on the rise, both in Ireland (up 3 % on 2023) and across other European countries surveyed, with an average of only one-in-three respondents having never heard of it. Respondents primarily view the digital euro and the central bank digital currencies (CBDCs) as a complement to existing payment methods.

Notably, trust in banks to handle digital euro transaction data is ten times higher than trust in technology companies. At 55%, respondents have a high level of trust in the banking sector to collect and store digital euro transaction data, compared to only 5% for technology companies such as Apple, Google, and Amazon.

On a country average, one in three respondents would use the digital euro, with one in five ready to use it multiple times a week. The survey results highlight that countries with high cash usage are more likely to use the digital euro more frequently.

Gillian O’ Sullivan, Partner and Country Lead of the Irish practice at BearingPoint: “Cash usage remains at a high level compared to other payment methods in European countries. It is currently unforeseeable that cash will lose its significant role in Europe, even though the frequency of cash usage has decreased compared to the previous year. What’s interesting is that awareness of the digital euro continues to grow. The fact that the digital euro would be used regularly by an average of one in three people highlights the potential of this payment method.”

As in the previous year, online shopping remains the preferred use case for the digital euro or CBDC, with an average of 37% across all countries. Ireland is the leader with 48%, followed by Austria with 42% and Germany at 38%.

In-store shopping is cited as the second most important use case with an average of 28% across countries, with Ireland reporting 38%. The use of the digital euro for money transfers to friends would be most prevalent in Ireland (36%) than in Finland (34%).

On a country average, the ranking of criteria for using the digital euro/CBDC has remained the same compared to last year. Being free of charge (43%) and accepted everywhere (37%) are still the leading objective requirements.

Martin Deere, Head of Finance and Risk, BearingPoint Ireland said: “The survey shows that more and more Europeans are getting involved with the digital euro and there is a growing interest in Ireland, especially for online transactions. Expectations for its use are becoming more concrete but vary from country to country. While cash remains important, Irish consumers are clearly looking towards the future of payments.”

He continued, “The banking sector is clearly favoured for storing and recording transaction data. When it comes to central bank digital currencies, the banking sector could leverage this momentum to strengthen its position with end customers.”