Pandemic Payment Patterns in the Netherlands

The Dutch National Bank (DNB) studied how an external shock, the COVID-19 pandemic, affected payments in the Netherlands, using an extensive payment diary that ran from January 2018 to October 2020.

Contactless debit card usage increased sharply at the expense of cash, but the stated preference for paying with cash only reduced slightly. Older people were the big movers to debit card payments. The change did not follow infection levels but appears to reflect the restrictions introduced to limit the virus.

The Netherlands has been a big user of debit cards for some time, with cash usage steadily decreasing. In 2019 cash made up 32% of point-of-sale (POS) payments, while debit cards were responsible for 67% (contactless 43% and using a PIN code, 24%). 90% of debit cards are enabled for contactless payments.