Czechs Open To New Payment Methods, But Still Like Using Cash
In the Czech Republic, 82% of people prefer contactless payment while a fifth of the population pays using a mobile phone. Two-thirds of Czechs have already tried out immediate payments and more than half of the population would be interested in trying out the new mobile payment method. Photo Credit: Freepik / Illustrative Photo.
Czech Rep., June 25 (BD) – According to a survey recently published by the Czech Banking Association (ČBA), more and more Czechs are choosing “smart” payment methods, though the traditional modes of payment remain in use.
The ČBA survey was conducted in March with thousands of respondents. According to the results, 82% of people prefer contactless payments, while a fifth of the population pays using a mobile phone. In addition, two-thirds of Czechs have already tried out immediate payments and more than half of the population would consider mobile payments as a beneficial novelty.
Despite their openness to modern payment solutions, Czechs still value traditional means of payment. The most widespread payment method remains debit cards, which are used by 69% of Czechs, followed by cash payments, used by 55%. Although Czechs are open to innovation, they are not ready to give up cash altogether. Of respondents to the survey, less than a third of people think that moving away from cash would make their life easier, while two-thirds would consider this a restriction of freedom.
Graph: Survey results on payment methods in the Czech Republic. Credit: Czech Banking Association (ČBA).
Contactless payments by mobile phone are becoming more and more popular in recent years. Almost a fifth of Czechs use this method, and the number is still growing. “The positive attitude of people to payment innovations was partly supported by the coronavirus pandemic, during which our lives moved to the online world and most people had to adapt to a number of things they were not used to,” commented Tomáš Hládek from the ČBA.
Among those using mobile payments, 58% pay using Google applications, a third prefer Apple Pay, and one in ten have their own special payment application. In addition to the increase in “smart” payments, the pandemic has influenced Czech habits for withdrawing money. People are now withdrawing more money but less often than before, according to data provided by SBK stating that there were 36 million fewer withdrawals last year, while the average amount withdrawn increased by more than CZK 500 year-on-year.
Graph: Survey results on payment methods while shopping online in the Czech Republic. Credit: Czech Banking Association (ČBA).
Regarding online transactions, payment by card continues to be the most popular method while cash on delivery and placing an order via internet banking are in decline. According to Hládek, the decline in the use of cash on delivery does not mean that this method will completely disappear, as this method provides safety when ordering from unknown retailers or retailers with negative reviews. While shopping online, 68% of Czechs prefer using their computer or laptop, as it is the most convenient way to view the information clearly.
Immediate payments are already known and used in the Czech Republic, with a growing number of shoppers using them. Almost two-thirds of the population have already had experience with immediate payments. So-called mobile payments are still in the preparation phase and are currently being negotiated by the ČBA, selected member banks, and the Czech National Bank (ČNB). The survey conducted by the ČBA indicated that 45% of survey participants would be interested in the new service.