Issue link: https://maltatoday.uberflip.com/i/1534549
DIGITAL and card-based pay- ments are gaining ground across the board but cash remains the payment method of choice for everyday transactions such as gro- ceries, particularly among older consumers. The information comes from a new study by the Central Bank of Malta, which offers a snapshot of payment preferences across dif- ferent types of purchases. Authored by Stefano Savo and Brenda Lee, the study is based on telephone interviews with 1,416 individuals conducted in February and March 2024. Cash remains the dominant payment method for groceries in Malta, with 39.5% of respondents preferring it for everyday shop- ping. However, debit card usage is on the rise, accounting for 34.2% of grocery payments. This repre- sents a radical change from a sim- ilar study held in 2020, in which 86% reported using cash for gro- ceries. The move away from cash is even more evident in other cat- egories. For consumables like clothing, shoes and books, 41.1% of respondents now use debit cards, compared to 29.2% who still use cash. Nearly 20% use a credit card for these purchases. Similarly, 36.9% of respondents pay for non-consumables — such as electronics and furniture — us- ing debit cards, with just 22.2% us- ing cash. Less than a fifth are using credit cards for such purchases. This marks a significant reversal from 2020, when cash was still the dominant method in both catego- ries. Utility bill payments are increas- ingly made online, with 34.2% of people opting for digital methods. Still, 23.9% continue to use cash, particularly where post offices — which only accept cash — are the payment venue of choice. Despite a drop from 95.6% in the 2020 survey, cash still accounts for 61% of payments to hairdressers, beauticians and gyms. Services such as cleaning and repairs are also largely cash-based, at 71.4%. These sectors are often dominat- ed by self-employed individuals, many of whom lack access to tra- ditional POS terminals. New mo- bile POS technologies that allow card payments via smartphone may drive change, but adoption remains slow. Peer-to-peer transactions are another area where cash domi- nates, with 56.8% of people prefer- ring it to other payment methods. But mobile payments are gaining traction — 36.5% now use them — but their spread is limited by the inability to transfer funds in- stantly between accounts held at different banks. A forthcoming EU regulation mandating instant interbank payments could signif- icantly change this. Age divide The study also exposes a digital divide between older respondents who see cash as the safest option, while younger people view it as the least secure. Interestingly, it is the younger demographic that re- ports a higher incidence of fraud, likely due to greater use of online payment platforms. Only 14% of those over 55 said they had used fintech services like Revolut, compared to nearly half (49.5%) of 16- to 34-year-olds. Older participants also expressed greater concern about the transi- tion away from cash, often citing lack of technological know-how. The study also shows that 74.4% of Maltese have access to a debit card, 58.6% have access to mo- bile banking, 51.9% have access to a credit card and 34.9% have access to a cheque book. A small fraction amounting to 4.9% of re- spondents, claimed that they do not have access to any alternative payment instrument to cash. JAMES DEBONO jdebono@mediatoday.com.mt Cash is a dying breed, new study shows Big on Quality, Lidl on Price Even though every effort has been made to ensure adequate supplies, these items may sell out quickly. Prices do not include decorative material. Prices are valid save errors or omissions. THURSDAY 24 TH APRIL from Thursday 24/04 to 4/05 ZBG9014 Triq L-Mdina NEW Opening PARKSIDE® Multi-Purpose Tool Oscillation technology for sawing, cutting, scraping and sanding Variable oscillation speed Attachment for external dust extraction Per pack Per pack 11. 99 -60% 29.99 Includes: bag, paddle, dry sack, pump, seat and leash, footpegs and repair kit Per pack Per pack 199. 00 € 100.00 OFF 299.00 -33% -33% Stand-Up-Paddle Board 3-fin system, 2 air chambers and 2 carrying handles Anti-slip surface and reinforced material Paddle, adjustable for length (165-215cm) Max. 150kg 5 adjustable backrest positions LIVARNO home Aluminium Sunlounger With removable cushion and mesh pocket Weatherproof, UV-resistant Dimensions (without sun shield): 193 x 67 x 32cm (L x W x H) Per pack Per pack 49. 00 € 50.00 OFF 99.00 -50% -50% Can be folded up to save space, with handle Rated no-load oscillation speed: n0 15,000-21,000opm 310W Includes: 2 plunge saw blades, segment saw blade, scraper blade, delta sanding plate, 18 sanding sheets and dust extractor (2 pieces) max. KG 110 ©2023 F2 FUN&FUNCTION GmbH Germany, All rightsreserved 3 maltatoday | SUNDAY • 20 APRIL 2025 NEWS