Cash Usage, Financial Inclusion, and Uneven Development in Transition Economies: Evidence from Romania and the European Union
|
|
|
| Authors: |
|
| Pages: | 103 : 119 |
| Abstract: | The rapid digitalisation of financial services has transformed payment behaviour across the European Union, but the transition towards cashless transactions remains uneven. This paper examines the relationship between cash usage, financial inclusion and uneven development, with particular emphasis on Romania in comparison with the European Union. The study asks whether persistent cash use should be interpreted only as delayed financial modernisation or also as a response to structural inequalities in income, financial accessibility, digital capabilities and territorial development. The analytical framework combines evidence from the European Central Bank, Eurostat, the World Bank Global Findex and the National Bank of Romania with an extensive review of recent peer-reviewed research. Descriptive benchmarking shows that cash remains relevant even in advanced European payment systems: in the euro area it accounted for 52% of point-of-sale transactions in 2024. Romania combines rapid macroeconomic convergence with important inclusion gaps. In 2024, 69.9% of Romanian adults had a financial or mobile-money account, compared with 86.3% in Poland, 88.2% in Portugal and 99.3% in the Netherlands. Only 28% of Romanians aged 16–74 had at least basic digital skills in 2023, compared with 56% in the EU. Romania’s GDP per capita nevertheless reached about 78% of the EU average in 2024. The findings support the concept of asymmetric financial modernisation: technological and income convergence can advance more rapidly than convergence in the capabilities and infrastructure required for universal participation in digital finance. The paper concludes that inclusive payment policy should combine digital innovation with financial and digital education, territorial accessibility and continued access to cash for groups at risk of exclusion. |
| JEL classification: | E42, G21, G28, O16, O52, R11 |
|
|
E42, G21, G28, O16, O52, R11
