The Use of Cash and Electronic Payment Instruments in the Economy

This study provides an overview on the literature regarding the benefits from the/an increased use of electronic payments. Although these payments are steadily gaining ground in Europe, considerable cross-country differences remain in terms of relative cash usage or the choice among alternative payment instruments. Empirical evidence suggests that the promotion of more efficient payment instruments is considered to contribute to economic and social welfare. Other estimates show that the social cost of payments in the economy should not be ignored and that this cost is higher for countries with a lower share of electronic payments usage. In Greece, the use of electronic payments remains very low, suggesting that there is scope for further improving efficiency in this area