.IE Tipping Point Report 2022

.IE Tipping Point 2022: Irish e-commerce and digital business in the post-Covid era | 5 3. Prepare for cash irrelevance Cash as a means of transaction has been in steady decline for a number of years, but pandemic lockdowns and concerns around hygiene, as well as the Government’s decision in 2020 to increase the maximum contactless payment limit to €50, has accelerated this trend. 62% of consumers say they are using cash ‘significantly’ or ‘slightly less often’ since the beginning of the pandemic. When asked about their typical use of cash, 16% said they do not use cash for any purchases, while 41% said they used it for purchases under €10. Just 22% used it for purchases above €50. Surprisingly, this decline is universal among all age groups - and the least cash-friendly are the eldest . 66% of Baby Boomers are using cash less often, compared to 58% among Gen X and 62% among older Millennials. SMEs have been generally responsive to increased demand for non-cash payment options, although there is no overwhelming majority in any one area: exactly half of SMEs accept contactless payments and exactly a third chip-and-pin. Just 29% accept payments from a digital wallet, such as Apple Pay or Google Pay. However, as many as 25% of all SMEs still only accept cash, a number that rises to 35% among businesses with 1-5 employees and 38% among SMEs with a premises in Dublin. While cash may be an attractive short-term solution for smaller businesses, it is clearly in decline as a viable platform for long-term business growth. Preparing for the post-Covid era [continued] How SMEs protect customer data 38% Don’t know 24% Don’t take any particular action 20% Use encrypted software 15% Use a firewall/antivirus 11% Use two-factor authentication 11% Use a website security certificate 9% Back up customer data 7% Use a dedicated server 6% Use a password manager 4% Train staff in cybersecurity best practice 3% Use a VPN 1% Other Base: 502 SMEs