A recent survey conducted by KB SmartPay has revealed a significant shift in payment preferences among Czech customers. More than half of the respondents stated that they would decline to make a purchase if the seller did not accept card payments and they did not have enough cash on hand. While the amount of cash carried by individuals has decreased compared to the previous year, there has been a remarkable increase in the adoption of mobile payments.

The survey findings indicate that in 57% of cases where sellers do not accept card payments and customers lack sufficient cash, the transaction is abandoned, leading the customer to seek out a competitor that supports their preferred payment method. Only a few months ago, this figure stood at 48%, indicating a substantial shift in consumer behavior.

Moreover, only 40% of respondents today are willing to make the effort of going to the nearest ATM, withdraw cash, and return to complete their purchase. In the past, this number was notably higher at 52%, signifying a growing preference for the convenience and efficiency of digital payment methods.

The study also highlighted that over 67% of Czech citizens now exclusively rely on non-cash payments, and the amount of money carried has slightly decreased. Approximately one-fifth of the respondents stated that they carry no cash at all, or at most, up to CZK 300. The majority (48%) carry between CZK 300 to 800, which remains a consistent long-term trend. Additionally, 28% of respondents carry more cash, ranging from CZK 800 to 2000, which has only experienced a marginal decrease of two percentage points compared to the previous year.

Regarding non-cash payments, while card payments remain the most preferred option, mobile payments have experienced significant growth. Nearly one-third of Czechs now opt for mobile payments, demonstrating the appeal of this method, particularly among the younger generation.

Jitka Palatová, CEO of KB SmartPay, noted that the popularity of mobile payments is driven by the desire among the younger demographic to have their phones with them at all times. The convenience and reduced risk of losing a phone compared to a physical card have contributed to the surge in mobile payment usage.

Luboš Kastner, a founding member of the Czech Gastronomic Institute and a member of the Board of Directors of the Association of Small and Medium-Sized Enterprises and Entrepreneurs, emphasized that businesses should adapt to the increasing preference for non-cash payments. He argued that accepting non-cash payments is an unstoppable trend and a profitable decision compared to cash transactions.

As mobile payments continue to gain momentum, businesses in the Czech Republic should prioritize offering non-cash payment options to meet customer demands and prevent losing potential revenue to competitors who have embraced this evolving payment landscape.

Article by Prague Forum