Cash still king in Malta as card and mobile payment acceptance trails euro area

Cash remains widely accepted among Maltese businesses, while the uptake of card and mobile payments falls below the euro area average, according to new European Central Bank (ECB) data.

The ECB’s 2026 survey on the use of cash by companies shows that 91 per cent of Maltese small and medium-sized enterprises (SMEs) selling at physical locations accept cash, broadly in line with the 92 per cent average across the 21 euro area countries.

However, a more pronounced difference emerges when looking at other payment methods. Around 81 per cent of Maltese SMEs accept cards, compared with 90 per cent across the euro area, while 43 per cent accept mobile payments, considerably below the euro area average of 67 per cent.

Cash acceptance varies considerably by sector

While overall cash acceptance in Malta is close to the euro area average, the results show substantial differences between sectors.

Around 99 per cent of Maltese retail businesses surveyed accept cash, above the euro area rate of 93 per cent. Cash is also accepted by 93 per cent of businesses in accommodation and food services, matching the euro area level.

However, the rate falls to 67 per cent among Maltese businesses in arts, entertainment and recreation, compared with 84 per cent across the euro area.

The picture is almost reversed when looking at card acceptance. Only 56 per cent of Maltese retail businesses accept cards, substantially below the euro area average of 89 per cent. By contrast, card acceptance stands at 94 per cent in arts, entertainment and recreation, compared with 87 per cent across the euro area, while the underlying data shows that all accommodation and food service businesses in the Maltese sample accepted cards.

Mobile payments remain less widespread across all three Maltese sectors. They are accepted by 41 per cent of retail businesses, 45 per cent of arts, entertainment and recreation businesses and 43 per cent of accommodation and food service businesses. The respective euro area rates are 67 per cent, 63 per cent and 69 per cent.

Most Maltese businesses have no preferred payment method

Despite the high level of cash acceptance, the majority of Maltese SMEs do not express a preference over how customers pay.

Some 68 per cent reported having no preferred payment method. Cash was the preferred option for 17 per cent, followed by credit cards at 8 per cent, debit cards at 5 per cent and mobile payments at 2 per cent.

This differs from the euro area as a whole, where preferences are more evenly distributed. Across the euro area, 33 per cent of SMEs have no preference, while 24 per cent favour debit cards, 21 per cent cash, 14 per cent credit cards and 4 per cent mobile payments.

The Maltese figures also show relatively little variation in attitudes towards cash between sectors. Cash is preferred by 18 per cent of retail businesses, 17 per cent of accommodation and food service businesses and 14 per cent of those operating in arts, entertainment and recreation.

Maltese companies see advantages to cash

The survey also asked SMEs accepting both cash and cards to compare cash with digital payments across a number of areas.

Nearly half of Maltese respondents – 49 per cent – considered cash either “much better” or “slightly better” in terms of transaction speed, while 47 per cent said the same when it came to reliability and sensitivity to malfunctioning.

On overall costs, 44 per cent regarded cash as better than digital alternatives, although 32 per cent considered it slightly worse.

The strongest result was recorded for security. Some 55 per cent considered cash “much better” and another 11 per cent “slightly better” than digital payments in terms of security, which the survey framed around risks including hacking and robbery.

Cost and security weigh more heavily than customer preference

The factors Maltese businesses consider when deciding which payment methods to accept also differ markedly from those reported across the euro area.

Security was identified as the most important criterion by 24 per cent of Maltese SMEs, while 15 per cent cited overall costs and another 15 per cent privacy.

Only 5 per cent identified consumer preference as the most important consideration. Across the euro area, by comparison, consumer preference was the leading factor at 28 per cent, followed by security at 20 per cent and ease of handling at 16 per cent.

Mistakes and safety among main concerns with cash

Despite widespread cash acceptance, Maltese businesses reported several concerns associated with handling it.

The risk of making mistakes when giving change was cited by 59 per cent of respondents, almost twice the euro area rate of 31 per cent. Safety was identified by 46 per cent, compared with 29 per cent across the euro area.

Almost a third – 31 per cent – said counting and managing cash takes staff time away from other tasks, against 18 per cent across the euro area.

Cash-related costs also appear to weigh more heavily on Maltese companies. Some 25 per cent identified the expense of depositing or withdrawing cash as a concern, compared with 10 per cent across the euro area, while 23 per cent cited the cost of transporting cash, again compared with 10 per cent across the bloc.

Meanwhile, 23 per cent identified the risk of internal fraud as a concern, against 17 per cent across the euro area.

The ECB survey's Maltese sample consisted of 97 SMEs, including 58 retail businesses, 24 operating in accommodation and food services and 15 in arts, entertainment and recreation.

By company size, the sample included 80 micro businesses, 13 small businesses and four medium-sized enterprises.