Cash, the most common payment method in Spain, becomes the alternative in emergency situations such as the massive power outage on April 28 or in the event of a possible cyberattack or system or network failures that prevent card payments.
The latest data from the Bank of Spain confirm the increasingly evident trend of the growing use of digital payments and a decrease in the use of cash; however, cash remains the most common payment method.
In Spain, in 2024, more than half of the transactions in physical establishments were made in cash, 57%; moreover, the platform Denaria assures that cash withdrawals at ATMs have recovered to pre-pandemic levels.
Even so, according to the supervisor's data, nearly six out of ten consumers state that their preferred payment method in physical stores is a card, compared to the 26% of consumers who prefer to pay in cash.
A coveted good
That explains why last Monday, during the blackout, cash became a coveted commodity and the alternative when card payments were no longer possible because the card readers or point-of-sale terminals (POS) stopped working.
In a normal situation, the main advantages that consumers associate with the use of cash are anonymity and privacy, but in emergency cases, it becomes much more appreciated because it positions itself as the most viable payment option for acquiring basic products and services.
Millions of people were unable to make digital payments last Monday due to the collapse of electrical and telecommunications networks, which affected point-of-sale terminals, mobile applications, and ATMs.
Purchases through electronic payment systems decreased by 55% that day, amounting to 400 million euros, as reported by the Minister of Economy, Carlos Cuerpo.
Although the power outage may seem like an isolated incident, the truth is that, on previous occasions, electronic payments have also been affected for hours due to internet or payment network failures, leaving the option to complete purchases only to those who had physical cash.
A cash reserve
From Denaria, the platform that advocates for the use of cash, it is advised that the population always keep a small reserve of cash as a basic preventive measure.
At the same time, it urges the competent authorities to ensure access to cash through a solid and distributed network of ATMs, with sufficient coverage for all citizens.
"The recent system crash has made it clear, as we have been warning for years, that the digital world has evident fragilities," they argue.
Cash, they argue, is not a relic of the past, but a strategic necessity to ensure the functioning of the economy and fundamental rights under any circumstances.
They also remember that the appearance of elevators did not mean the disappearance of stairs.
Denaria emphasizes that cash does not depend on batteries, mobile networks, or digital connections; and that it represents a key tool in emergency situations like those recently experienced.
Cash is essential for national security and, consequently, the authorities should guarantee and support the use of this citizen right.
Denaria also reminds us that the use of physical cash is a citizen's right protected by current legislation, and that any measure that limits it, directly or indirectly, poses a risk to freedom of choice, financial privacy, and the resilience of the economic system.
Source: El Economista