A European coalition of retailers and wholesalers is pushing back against a proposed EU rule that would require businesses to accept cash.
In a statement, the industry group EuroCommerce responded to ongoing EU payment discussions taking place as consumers across Europe continue shifting toward contactless cards, mobile wallets, and other digital payment methods.
While merchants say they support continued access to cash, they are urging policymakers to include exemptions in any new regulation. They argue that mandatory cash acceptance could drive up costs, increase security risks, and disrupt digital retail models.
Exemptions Sought
The exemptions outlined by EuroCommerce are broad and, in practice, could allow many retailers to opt out. In its position paper, the group highlights scenarios such as unmanned environments, situations where safety is at risk, and cases where accepting cash could impose disproportionate costs. It also calls for the ability to display “no cash” signage.
“Businesses want to meet customers where they are and accept however they want to pay,” said Don Apgar, Director of Merchant Payments at Javelin Strategy & Research. “The trend toward no cash is largely driven by the move toward cards and digital payments. When cash becomes a very small percentage of sales, most merchants are comfortable eliminating it entirely, because new customers that the business will attract are likely to pay digitally as well.”
The Cost of Cash
At the core of the debate is the cost of handling cash. In markets where digital payments dominate, maintaining the infrastructure to process cash can become disproportionately expensive.
These costs are not linear. If cash accounts for only 10% of sales, that doesn’t mean handling expenses fall by 90%. Much of the operational burden is fixed, and merchants can’t reduce it unless they’re permitted to stop accepting cash altogether.
“From the sellers’ perspective, digital payments offer not only cost savings, but better safety and security for employees who no longer have to handle, control, and transport cash, especially in challenging environments like overnight store hours, air transport, etc.,” Apgar said. “Not accepting cash enables merchants to eliminate those functions and the associated hardware from their businesses, streamlining operations and overhead in the process.”
“The concern for merchants is that once the government steps in and disrupts this free market trend with legislation that mandates cash, merchants will be stuck with the fixed cost of cash acceptance even though it’s no longer benefitting their business or customers,” he said.
