Cash or digital payment?

By: Trademagazin Date: 2025. 08. 04. 09:50

Hungarian youth are increasingly using digital payment methods – be it mobile apps, smartwatches, smart bracelets or bank cards – and they consider their security to be equivalent to cash. The latest data from the K&H Youth Index clearly shows the generational divide: they are already living in the future in their minds, but in practice many still cling to traditional solutions.

The rise of digital devices – the bank card is being pushed into the background

Two-thirds (66 percent) of the 19-29 age group are already certain that mobile devices will take over the role of bank cards within a few years. 74 percent of respondents consider mobile app payments to be just as secure as bank card solutions – this is an increase of a few percentage points compared to recent years. Moreover, 70 percent believe that the convenience of mobile payments is as good as card purchases.

The declining role of bank cards is also well indicated by the fact that cash withdrawals without a physical bank card have quickly become popular at K&H. In January, 41 percent of ATM transactions were carried out with digital identification, without a card, and by March, 48 percent.

Cash that cannot be written off

While 61 percent of young people believe that the time for cash is over, they no longer consider it the only reliable form of payment in terms of security. The vast majority of respondents also classify cash (86 percent), bank card (83 percent) and smartphone payments (79 percent) as low-risk solutions – meaning that they increasingly consider the security of digital payment methods to be equivalent to cash.

Technology is natural – yet tangible money is safe

Payment with a smartwatch or smart bracelet is now a given: 70 percent of young people consider it reliable. QR code payments were considered safe by 60 percent, while using a bank card for online purchases was considered safe by 58 percent. Although the latter share is lower, bank card payments are still among the safest solutions – especially thanks to modern security features such as strong customer authentication and transaction notifications.