Whether cash in Poland will vanish forever. There'll be changes

For respective years, the subject withdrawal of cash and full digitization of payments in Poland gives emergence to heated discussions. Although the government and financial institutions see many benefits in specified changes, Poles stay attached to conventional forms of payment. What can it mean to introduce a non-cash strategy for citizens, businesses and the economy as a whole?

Cash versus digital payments – what is the current situation?

According to the study of the National Bank of Poland (NBP), in 2023 Poland was in circulation above PLN 380 billion cash. Although this number is constantly increasing, more transactions are made utilizing payment cards, mobile applications or BLIC. In 2023 until 66% of Poles It regularly utilized non-cash payments, an increase of 8% compared to the erstwhile year.

However, studies show that about 30% of the population inactive prefers cash, especially older people and residents of smaller towns.

Government cash simplification plans

The introduction of a full non-cash strategy in Poland would be consistent with trends seen in another European countries. Sweden, which already works almost completely cashless, is 1 of the models to follow. In Poland, however, specified changes require not only time but besides crucial social education.

The government plans to gradually reduce the usage of cash by:

1. Reduction of cash payment limits:
   Currently, entrepreneurs can make cash transactions up to the amount PLN 15,000but it is planned to reduce this limit to 8 1000 PLN in the coming years.
2. Promotion of digital payments:
   Cooperation with banks and fintechs to facilitate access to bank accounts and mobile payments, specified as BLIK, which served over 2023 1.2 billion transactions in Poland.
3. Obligatory payment terminals:
   Programs specified as Non-cash Poland support entrepreneurs in the installation of terminals, which has already allowed increased availability of card payments in smaller stores and service outlets.

However, the introduction of specified a strategy is not without challenges. deficiency of access to cash can be a problem for those digitally excluded, which in Poland are inactive About 13% of the population. Moreover, Poles fear the failure of privacy – until 42% of respondents considers that the digitisation of payments increases government control over their finances.

What do the Poles think?

Although the number of non-cash payment supporters is expanding until 67% of Poles declares that they would like to be able to choose between cash and digital payment methods. Many fear that the full elimination of cash can lead to dependence on banking systems that are not always immune to cyber attacks or method failures.

An example of a BLIC failure in 2022 that prevented thousands of users from making payments for respective hours shows how crucial it is to diversify the payment system.

Despite the government's plans, the full withdrawal of cash in Poland seems improbable in the coming years. Instead, we can anticipate a gradual simplification in its function in the economy and further promotion of digital payment methods. However, it will be crucial to find a balance to take account of the needs of all social groups.