"Record High for Non-Cash Transactions in Latvia: Cashless Payments Dominate the Market"
Updated Payment Radar Report for Latvia: Spring 2025 (Written in a casual, straightforward style)
Latvia's most recent Payment Radar report, published by Latvijas Banka, reveals some intriguing insights about the country's payment habits. Here's a breakdown of the key findings:
- Non-cash payments now make up 78% of all transactions, surpassing cash for the first time, with a 1% increase from the previous year.
- In February 2025, the average Latvian made around 14 payments per week, including 11 non-cash transactions and 3.1 cash transactions.
The data comes from a public survey conducted by SIA Latvijas Fakti, and the Payment Radar is published semi-annually on Latvijas Banka's website (https://www.bank.lv/en/operational-areas/payment-systems/payment-radar). It offers a glimpse into Latvia's payment landscape, providing valuable insights for businesses and policymakers.
A snapshot of non-cash payments
Since the first measurements began in 2017, we've seen a gradual rise in non-cash transactions, reaching a plateau at 77%-78% over the past few years.
fun fact: Did you know that in 2017, non-cash payments only accounted for 58% of the market? 🤔
Rise of modern payment technologies
While the overall usage of modern payment technologies has plateaued, there are some interesting shifts worth noting:
- Contactless card usage dropped slightly to 62%, from 67% and 68% in August and February 2024 respectively.
- Smartphone payments increased from 22% to 24%, showing a bit of a surge.
- 1% of the populace now uses a smartwatch for payments.
Instant payments and security
34% of the population uses instant payments daily, down from 35% in August 2024. However, awareness of the instant payment feature remains high, with 51% yet to adopt it. 📈
When it comes to security, the latest statistics on currency counterfeiting for 2024 show a 30% decrease in the value of counterfeits. Despite this decline, the perceived security of the euro remains high, with 59% of respondents considering it difficult to counterfeit. 🛡️
The fight against payment fraud
Regarding the battle against fraud, a Verification process will come into effect across Europe on October 5th, 2025. This system will require payees' details and account number consistency checks before initiating any payment. 🚫
The future of the digital euro
As the October 2025 deadline approaches for the European Central Bank to decide the future of the digital euro project, Latvia's population was surveyed to gauge their interest in adopting this new form of currency. Of those surveyed, 26% expressed willingness to use it, while 42% opted not to. 🤔
For more details on the Payment Radar report and other relevant insights, head over to Latvijas Banka's official website. 🔗
(Enrichment Insights* Latvia follows broader trends: While specific data for Latvia is not available, Latvia likely follows similar trends observed in neighboring countries or the euro area as a whole, including an increase in non-cash transactions and a decline in cash use.* Economic context: Latvia's economic performance can influence payment trends, but without specific data from Latvijas Banka, it's difficult to pinpoint exact changes in the non-cash to cash payments ratio.
- The 2025 Payment Radar Report for Latvia shows that business operations may need to adapt to the average Latvian's personal-finance habits, as non-cash payments now comprise 78% of all transactions.
- As technology continues to evolve, it seems that average Latvians are increasingly using modern methods like smartphone payments for their day-to-day financial transactions, with a 2% increase since last year.
- The banking-and-insurance industry should take note of the rise in instant payments, with 34% of the population using them daily, but only 51% aware of the feature.
- In the near future, finance and business practices may incorporate stricter verification processes to combat payment fraud, as a new system will come into effect across Europe on October 5th, 2025.
- The digital euro project is under consideration by the European Central Bank, and a sizable portion (26%) of Latvians have shown interest in adopting this new form of currency when it becomes available.
- While Latvia's payment trends closely resemble those of its neighboring countries and the euro area, the economic performance of the country can also influence these trends, providing valuable insight for policymakers and the industry.
