Irish consumers have dramatically shifted away from cash payments, with physical currency now accounting for only one in eight euros spent across the country, according to new Bank of Ireland data.
The figures represent a “stark” transformation from pre-Covid times, when cash made up one third of all transactions. This digital payment revolution continues to accelerate, with ATM withdrawals declining 3.6% in the year to June.
Meanwhile, Irish consumer spending shows robust growth, with Bank of Ireland credit and debit card transactions up 5.7% in June compared to the same month last year. This spending surge significantly outpaces the 1.8% Consumer Price Index inflation rate, suggesting genuine increases in purchasing power.
The strong spending patterns are driven by Ireland’s “rapid pace of job creation and pay growth,” with consumers showing resilience despite global uncertainties and recent dips in confidence surveys. Holiday-related purchases and electrical goods led the charge, with services spending growing 5.6% year-on-year, accommodation up 4.3%, and car rentals surging 16%.
Electrical goods sales jumped 16%, though clothing sales fell 2.1%, indicating selective consumer behavior.
Bank of Ireland Chief Economist Conall Mac Coille noted that Irish households “continue to spend confidently” despite international pressures, supported by solid employment and income growth.
The spending data aligns with revised Central Statistics Office figures showing consumer expenditure expanded 2.9% in 2024, substantially higher than initially estimated. This growth is consistent with VAT receipts rising 7.3% to €23 billion and household disposable incomes increasing 7.5%.
Despite increased spending, Irish households maintain strong savings habits, with deposits growing 6.5% to €165 billion in May.