Data from Visa, one of the leading payment processors, tells a tale of travelers using cash less and less in their travels, with as many as 97% of travelers in the Asia Pacific region not bothering to bring cash along.
Overall, Visa says, 31% of travelers brought cash to their destinations in 2023, down from 79% in 2020.“We are witnessing a significant shift in travellers’ behaviours and payment preferences post-pandemic, with many opting for safe, digital, and touch-free payment methods, ” according to Visa officials.
Although the study doesn’t track how many travelers draw cash from ATMs on arrival, the conclusion seems solid: throughout the world, the growth of tap-and-pay on a variety of devices, combined with a merchant willingness to take cards for even very small transactions, has changed the picture sharply in only a short time.
Call me old-fashioned, if you want, but I always like to have the safety net of cash in my back pocket (or wherever it seems safest). There have been many situations where I have had to rely on that – and it often gives you a better chance of striking a bargain.
On my last two trips to Europe I took cash, but used very little, except.for street vendors. As for the ATM, I changed money at my bank in the U.S. because ATM fees and exchange rates are just awful.
Like ProfessorAbe, I still carry some cash, although in my last two trips to Europe, totaling about 6 weeks, I spent only about €150 in cash.
But for that cash, I’m going to disagree on buying Euros from a U.S. bank; that’s generally one of the worst rates and annoying fees. ATMs in Europe (bank ATMs, not ones run by currency exchanges) use an exchange rate a tiny fraction above the interbank rate. The exception is if you allow ‘dynamic currency conversion,’ meaning that you agree to have your account debited in dollars rather than Euros.
Also: Charles Schwab, the brokerage and bank company, allows you to open a no fee, no minimum balance checking account that has no ATM fees, no foreign transaction fees and repays any ATM fees charged by other banks.