More contactless, less cash on delivery: Crisis impacting Czech payment methods, report shows

28-05-2020

Czechs’ payments methods have been affected by the coronavirus crisis, with people increasingly preferring to use bank cards when making online purchases, rather than paying cash on delivery, according to a report released by the Czech Banking Association on Thursday.

Photo: Steve Buissinne, PixabayPhoto: Steve Buissinne, Pixabay

Consumers in this country are making online purchases more frequently – and buying things on the internet that they hadn’t previously.

What’s more, there has been a decline in the use of ATMs. Five percent of respondents in the Banking Association’s study said they had been afraid of handling cash in view of the Covid-19 pandemic. One-quarter said they had needed less cash.

Photo: Filip Jandourek, Czech RadioPhoto: Filip Jandourek, Czech Radio The most popular means of payment for Czechs are bank cards. Some 77 percent of respondents in the survey said they use debit cards when making purchases in stores, while 20 percent use credit cards.

Seventy percent pay in cash, with one tenth – especially elderly people – only ever using cash.

Increasing numbers of Czechs are making contactless payments via mobile phone or watch.

Thirty-five percent of respondents in the study said they had not used the option before but had begun contactless paying in recent months.

Unlike in some other European countries, Czech banks did not increase the limit for contactless payments when no PIN is required. The report found that that almost 60 percent of people were satisfied with the current limit of CZK 500.

When it comes to cash Czechs most frequently withdraw it from ATMs, with 59 percent of respondents in the report saying they do so one a month. Twenty-one percent do so once a week.

Photo: JESHOOTS / Pixabay / CC0Photo: JESHOOTS / Pixabay / CC0 Intervals between ATM withdrawals have increased with the gradual digitisation of Czech society and rise in the number of places accepting cards.

The survey suggests Czechs would find the total abolition of cash to be more an infringement on their freedom than something that would simplify their lives.

Some 65 percent of those surveyed said they never lodged money via ATM.

Thanks to the closure of brick-and-mortar shops and restrictions on free movement during the coronavirus lockdown, 3 percent of Czechs said they tried online shopping for the first time.

Six percent said they had begun buying things on the web that they had never purchased in that way before.

28-05-2020