The debate over cashless payments in Czech pubs has reignited in recent years, spurred by issues at festivals in Karlovy Vary and other summer destinations. Many establishments still refuse to accept card payments, blaming high transaction fees and some suppliers’ refusal to accept cards. However, the reluctance to go cashless is proving to be a long-term, unsustainable practice for many businesses.
Statistics reveal that one-fifth of Czechs no longer carry cash, and nearly three-quarters of businesses now accept card payments. This shift in consumer behaviour puts pressure on pubs and restaurants to adapt. Despite the high transaction fees, businesses that accept card payments have seen an average increase in revenue by almost 20%.
According to Luboš Kastner, a restaurateur and gastronomy expert, the reasons cited for not accepting cards include resistance to fees, a defence of personal freedom, and a reluctance to change practices established in the 1990s. These reasons, however, are more prevalent among less reputable establishments. In contrast, businesses that have embraced digital payments are reaping the benefits.
Lukáš Kovač, co-founder and CEO of Qerko, notes that most bank fees for card transactions range between 1.3% and 1.8%. He argues that not accepting other payment methods is unsustainable for restaurants, as it drives customers to competitors that accept cards. The idea that customers will go to an ATM just to dine out is unrealistic for modern consumers.
Moreover, some business owners have locked themselves into unfavourable contracts with high fees, which can reach up to 4%. However, the market is competitive, and there are offers with fees as low as 1%. Tomáš Prouza, President of the Czech Confederation of Commerce and Tourism, highlights a project called “Czechia Pays by Card,” which allows entrepreneurs to try card payments for six months free of charge.
Another challenge is some suppliers’ reluctance to accept card payments. For instance, Plzeňský Prazdroj, a major beer supplier, offers three payment methods: cash, invoice, and online cashless payments. To use these services, businesses must have a commercial account with Česká spořitelna.
In conclusion, the shift towards digital payments is inevitable. Businesses that fail to adapt risk being left behind as consumer preferences evolve. The trend suggests that digital payments will become even more prevalent in the coming years, and signs saying “Cash Only” will become a relic of the past.