The main difference between cash and cashless is access. When paying with bank or with credit card, a card issued by a credit card company is required. The same applies for mobile phone payments, as it is based on the card added to the app.
During and after the COVID-19 epidemic, there has been a noticeable increase in the use of cashless payment methods. Without a doubt, the epidemic had a big impact on the move to cashless systems. Nonetheless, over the past 20 years, there has been a longer-term, general decrease in the use of cash in Finland and a commensurate rise in card payments (Harju & Snellman, 2021).
However, the adoption of cashless payment systems differs by nation, which is why it is worthwhile to take a closer look at the developments in Europe. In 2024 more than half (52 %) of the payments are still made with cash in physical locations in Euro zone. However, the percentage has decreased significantly since 2016 when it was 79 %. Of the countries surveyed, cash was the most widely used method of payment in Malta (67 %). In Finland, the corresponding percentage was 27 % and even lower in the Netherlands (22 %). Interestingly, both Finland and the Netherlands were the only countries where the use of cash increased from 2022 to 2024. Despite changes in payments, 62% of euro area residents see the possibility of paying in cash as very important or fairly important. (European central bank 2024.)
Accelerating instant payment
One issue that the European Union has recently placed great emphasis on is instant payment systems. Instant payment is a type of retail payment method that operates continuously, allowing for credit transfers to be executed in real-time, 24/7, throughout the year. Consequently, the transferred funds are immediately available for use by the payee. (Suomen Pankki 2024.) The European Commission has also made a proposal to ensure that the availability and acceptance of euro banknotes and coins as a means of payment is safeguarded by legislation throughout the euro area. (European central bank 2025.) The use of cash is reduced, the methods of payment are becoming more diverse, but despite this, it looks like the position of cash is still wanted to be maintained.
Observations at Helsinki Airport
Mohib Uddin (2024) conducted a study on how customers feel about paying without cash at a restaurant at Helsinki Airport. Research data collected in the summer of 2024, during the busiest time of year at Helsinki Airport and lasted for two weeks. Of the 125 respondents, 58 (46.4%) were in the 18-24 age group and 23 (18.4 %) were in the 25-34 age group. This indicates that, a majority respondents belong to “generation Z”.
In a fast-paced setting like an airport, study identified three key reasons why people prefer cashless payments: ease of use, quick transactions, and overall efficiency. Since businesses must balance both speed and quality in customer service, 85.6 % of survey participants agreed that cashless payments not only made transactions faster but also freed up staff to focus on other aspects of customer service, ultimately improving the overall dining experience.
With 64 % of respondents selecting debit or credit cards for their dependability, security, and broad acceptance card payments emerged as the most popular option. With 30.4 % of respondents favoring Apple Pay, demonstrating the growing acceptance of mobile payment methods, especially among Apple customers. However, 18.4 % of respondents said they still prefer using cash. Even though cashless payments are commonly accepted due to their effectiveness and simplicity, not every user has flawless experience. According to the study, 16 % of participants said they frequently had trouble with cashless transactions, frequently because of system failures or technical problems.
Looking ahead, the way financial transactions develop in the future is probably going to be greatly influenced by the ongoing development of digital payment systems. As payment technologies develop, companies need to concentrate on enhancing system dependability, resolving security issues, and guaranteeing accessibility for all clients.
Authors
Md Mohib Uddin graduated as a Bachelor of Business Administration in December 2024 from the LAB University of Applied Sciences.
Tatu Saarinen works as a Senior Lecturer at LAB University of Applied Sciences at the Faculty of Business and Hospitality Management.
References
European Central Bank. 2024. Study on the payment attitudes of consumers in the euro area (SPACE). Payment behaviour. Cited 25 Feb 2025. Available at https://www.ecb.europa.eu/stats/ecb_surveys/space/html/ecb.space2024~19d46f0f17.fi.html#toc5
European Central Bank. 2025. Access to and acceptance of cash. Cited 25 Feb 2025. Available at https://www.ecb.europa.eu/euro/cash_strategy/acceptance-cash/html/index.en.html
Harju, A. & Snellman, H. 2021. The future of cash in Finland – a basic service secured by law? Bank of Finland Bulletin. Finlands Bank. Cited 5 Dec 2024. Available at https://www.bofbulletin.fi/en/2021/articles/the-future-of-cash-in-finland-a-basic-service-secured-by-law/
Obsahovka. 2020. Eet, Sähköistä kirjaa, Myynti. Pixabay. Cited 18 Mar 2025. Available at https://pixabay.com/fi/photos/eet-s%C3%A4hk%C3%B6ist%C3%A4-kirjaa-myynti-4764501/
Suomen Pankki. 2024. Moving Towards Instant Payments in Finland. Money & Payments. Cited 10 Dec 2024. Available at https://www.suomenpankki.fi/en/money-and-payments/pikamaksamisen-edistaminen-suomessa/
Uddin, M. M. 2024. Impact of cashless transactions on customer experience and efficiency : a case study of restaurant at Helsinki Airport. Thesis. LAB University of Applied Sciences. Cited 5 Mar 2025. Available at https://urn.fi/URN:NBN:fi:amk-2024121134926
