Cash Payments Surge in Latvia, Highlighting Risks of Sole Reliance on Digital Systems
riga, Latvia – A recent study by the Bank of Latvia reveals a significant shift in payment preferences, with cash transactions jumping to 74% of all payments in August - a marked increase from February’s historic low of 22%. The rise underscores the vulnerability of exclusively digital payment systems and the continued importance of cash as a reliable alternative.
This trend comes as recent events across Europe demonstrate the potential for widespread disruption to electronic payment infrastructure. in April, a prolonged power outage impacted Spain and Portugal, rendering non-cash payments unavailable. The Latvian data suggests consumers and businesses are factoring in such possibilities, or simply responding to seasonal factors. The Bank of Latvia’s Payment radar study highlights a return to cash levels not seen as August 2023, when cash accounted for 27% of transactions.
Analysts attribute the August surge to increased activity at summer fairs and in rural areas, where cashless payment options are often limited. However, the data also serves as a reminder that complete dependence on digital payment methods carries inherent risks. “Cash has regained its oldest positions,” the Bank of Latvia emphasized, signaling a potential recalibration in payment habits.
The full article is available in the October 10th edition of Diena newspaper and online at Diena.lv. The article costs €0.40.
