Cash is the most popular payment method in Spain. But consumers have recorded a change in payment habits, coupled with restrictions on the use of cash during the pandemic, so that digital media (cards or mobile devices) have increased their presence. Banks are aware of this, and there are fewer and fewer companies that do not accept card payments. For this reason, the commissions they have to pay for using a POS (trading terminal) have been reduced by 76% in 20 years.

According to the data of the Bank of Spain on card statistics, The average commission charged by banks to businesses for using POS terminals is 0.37%. in the last quarter of 2022. Quite a low percentage compared to the 2002 average of 1.59%. In 2002, the business paid the bank for a purchase of 50 euros 0.79 cents, but now the payment has been reduced to 18 cents for the same purchase.

The decrease in fees is largely due to the fact that the use of cards in business has increased significantly.. Payment by cards at points of sale increased by more than 645%. In 2002, according to the supervisory authority, 991 million card payments were made in stores. 20 years later, at the end of 2022, POS transactions are $7,390 million.

This is a figure that grows exponentially every year. The figure for 2022 is 21% higher than the previous year. Actually, 2021 was the year that recorded the highest growth in POS transactions since records were set., 28.83%. The main reason is that in 2020, despite the growth of digital payment methods, the restriction has reduced consumption.

The collection of fees by banks means that many businesses set a minimum amount for card payments. This information must be visible. However, The 0.37% commission rate makes it affordable for merchants. There is currently no regulation obliging businesses to have a data phone that can be used to make card payments. Institutions can choose whether to have a POS or not. However, there are some exceptions in regulated sectors such as taxis.

The ease of paying with cards means that cash withdrawals from ATMs remain at a minimum as there are entries. In 2022, 681 million cash were withdrawn, that, despite being 4.34% more than a year ago, 33% less than in 2008, when the record was set, a total of 1,018 million ATM withdrawals. In this case, the pandemic was also relevant, as in 2020, these transactions decreased in just one year by 31.25%.

Cards in circulation

In 2022, there were 88.42 million cards in circulation in Spain, representing a slight increase of 0.5% from the previous year. This small increase is due to the fact that the number of debit cards in circulation decreased by 4.79%, to 47 million cards. The amount that makes it the most used card. On the other hand, there were 41.36 million credit cards in circulation in 2022, up 7.28% from the previous year.

While there are still more debit cards in circulation than credit cards, last year’s trend clearly shows how customers choose the latter. This phenomenon is largely due to the fact that banks started issuing credit cards charging fees for issuing or servicing debit cards. On average, the fees charged by banks for servicing and issuing a debit card range from 20 to 36 euros per year.