Holidaymakers heading to Majorca this summer are being advised to be cautious when spending, as the central bank is set to withdraw certain notes from circulation over the coming months. Spain’s central bank has issued a warning against using old or damaged €50 notes, which are being phased out in an effort to curb fraud. From July onwards, only pristine €50 notes will be accepted by Spanish retailers.
Those in possession of worn-out €50 notes can exchange them at banks. Tourists may also encounter difficulties when attempting to use €500 notes, which were discontinued in 2016 but remain in circulation. Spain continues to have a high proportion of cash transactions, particularly in comparison to other European nations. While debit card usage has seen a decline in recent years, credit cards and mobile payments have gained popularity.
Currently, cash represents nearly 40% of all payments in Spain, followed by credit and debit cards. E-wallets account for approximately 10%.
Predictions suggest that while cash will continue to be widely used in Spain in the foreseeable future, digital wallets are expected to gain momentum. A survey indicates that Britons tend to favour cash over credit cards whilst on holiday.
Research by ABTA Travel Money has disclosed that a significant number of British holidaymakers prefer to use cash when abroad, compared to their spending habits at home.
According to ABTA’s data, 44% of UK holidaymakers admit to using more cash while on foreign holidays, in contrast to the mere 7% who claim to use less.
The primary reason for this preference, as cited by 44% of respondents, is that cash is often the only accepted form of payment at their chosen destinations.
Consequently, ABTA advises travellers to carry some cash to avoid resorting to costly cash withdrawals or finding themselves without any means of payment.
Nearly one-third (28%) of those who opt for cash during overseas holidays do so to evade bank charges and ATM fees.
This concern is valid, considering that individuals can incur between €2 and €6 per withdrawal in countries like Spain, Greece, and Italy, with additional currency conversion charges.
Other reasons for favouring cash include managing expenditure (37%), fear of card details theft (21%), and apprehension about card acceptance issues (20%).