Cash is losing ground and is holding out

"#OnPayeCash." The slogan spread across social media as September 10 approached, amidst the many calls for mobilization by the "Block Everything" movement. A straightforward slogan for a simple idea: by stopping the use of bank cards for cash payments, the movement's participants would deprive banks of "billions of euros" in commissions and fees paid to support merchants, even—some admit it—which means allowing them to avoid reporting these transactions to the tax authorities.

The potential damage to the banking sector is very difficult to assess. The last major national call for a banking boycott, echoed by former footballer Eric Cantona in 2010, among others, had almost no effect. But the target is clearly identified. The fees paid by merchants are far from negligible, between the "interchange fee" (set by the card network, CB, Visa, and Mastercard mainly in France), capped at 0.3%, the "network fees," which cover the bank's guarantee of the merchant's payment, and the bank's margin.

The total, which varies from one merchant to another, can be around 2% of the transaction amount. This is the price to pay to prevent fraud, speed up checkouts, and reduce the risks associated with handling cash, argue banks.

Cash is taking on a protest role at a time when its place in French life continues to decline. In 2024, for the first time, the number of cash payments in local shops was lower than that of bank card payments, falling to 43% of the number of transactions, compared to 48% for cards. The share of cash in France is thus lower than the eurozone average (52%). In terms of amount, coins and notes still represent around 20% of point-of-sale purchases, compared to a third in 2012.

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