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“Would you like to pay with cash or card?”
It is a question asked countless times across Malta every day, yet the answer increasingly reveals a deeper story about how the Maltese economy is evolving.
Malta stands out as one of the more cash-reliant economies within the Euro Area. Cash accounts for 54% of transactions by value and 67% by number, compared to significantly lower shares across the euro area. This suggests that, despite the steady rise of digital channels, cash remains deeply embedded in everyday transactions.
Cash continues to dominate in service-based activities, particularly those characterised by interpersonal interactions or smaller-ticket transactions. For example, 71% of payments in services transactions are made in cash. Activities such as visiting a hairdresser, or settling informal transactions often preserve a preference for physical money, mainly driven by habit and universal acceptance. In contrast, cards tend to be used in more formalised or higher-value transactions. Payments for consumables (41%), non-consumables (37%), and utility bills (34%) are more likely to be made through cards, which offer greater efficiency and traceability.
While cash remains widely used, its dominance is gradually being challenged, particularly among younger cohorts. Among individuals aged 18–39, around 50% prefer card or other cashless payments, compared to only 37% among those aged 65 and over. The share of individuals carrying cash remains high among older cohorts but has noticeably decreased among younger individuals, indicating a gradual shift in habits over time.
Digital payments are also growing steadily in value. The total monthly value of card payments increased from approximately €310 million in January 2022 to €500 million in January 2025 - a 34% increase over three years. Debit cards and e-money instruments now account for nearly 90% of all cards in Malta. This composition reflects a structural characteristic of the Maltese payments landscape: a relatively limited reliance on credit. Unlike in some larger economies where credit cards are more widely used for consumption smoothing, Maltese consumers tend to favour debit-based transactions, paying directly from available funds. This points to a more conservative approach to spending, where, rather than driving higher borrowing, the shift towards digital payments in Malta seems to reflect a move towards easier, faster and more controlled day-to-day spending.
Looking ahead, the trajectory is clear but not uniform. Continued investment in digital infrastructure, changing habits and younger generations will keep pushing payments further into digital. At the same time, the potential introduction of a digital euro could bring something new into the mix - a form of digital cash - shaping how people in Malta balance the familiarity of cash with the ease of digital payments.
This article was written by:
- Glenn Fenech, Senior Manager - EY Malta Economic Advisory
- Kylie Attard, Senior Associate - EY Malta Economic Advisory
- Antonella Nevola, Associate - EY Malta Economic Advisory
