Latvia has reached a definitive milestone in its transition toward a digital economy, with the share of cashless payments hitting a record high of 79%. According to the latest “Payments Radar” report from Latvijas Banka, the ratio of cashless to cash transactions stood at 79% to 21% in February 2026.
This figure edges past the previous record of 78% set in February 2025 and represents a significant jump from the autumn of 2025, when cashless payments accounted for 74% of all transactions. The trend highlights a steady, decade-long migration away from physical currency, reflecting broader European shifts toward digitized finance and mobile-first commerce.
The evolution is stark when viewed through a historical lens. When the central bank first began measuring these ratios in February 2017, cashless payments represented only 58% of the total. In less than ten years, the habit of carrying a wallet full of banknotes has transitioned from a necessity to a secondary preference for the vast majority of the population.
The anatomy of weekly spending
Beyond the percentages, the data reveals the granular habits of the average Latvian consumer. In February 2026, the average resident conducted 15.1 payments per week. Of these, 11.9 were cashless and 3.2 were made in cash.
A deeper analysis suggests a diversified digital approach. The typical adult now splits their weekly activity into roughly seven card payments, five internet transactions, and three cash settlements. This distribution indicates that while physical cards remain the primary tool for in-person shopping, e-commerce has turn into a fundamental pillar of daily life.
| Metric | February 2017 | February 2026 |
|---|---|---|
| Cashless Share | 58% | 79% |
| Cash Share | 42% | 21% |
| Avg. Weekly Payments | Not specified | 15.1 |
From plastic to screens: The smartphone surge
The nature of “cashless” is itself changing. There is a noticeable migration from contactless plastic cards to smartphone-based wallets. Daily use of contactless cards dipped from 58% in August 2025 to 55% in February 2026.
Conversely, smartphone payments saw a sharp increase, climbing from 21% in August 2025 to 32% in February 2026. This shift is most pronounced among the younger demographic; the majority of respondents under the age of 34 now rely on their phones as their primary payment method.
Security upgrades and the fight against fraud
As the volume of digital traffic grows, so does the focus on security. A key development is the “Zibpārbaude” (Quick Check) service, a mandatory verification system that ensures a recipient’s name matches their account number before a transfer is completed. This system aims to neutralize “invoice fraud,” where scammers swap account numbers while keeping a familiar name on the bill.
Between October 2025 and February 2026, the service processed 57.4 million verification requests. The practical impact is evident: 68% of residents noticed the check during their transfers, and half of those respondents reported that the service prevented them from making an incorrect or fraudulent payment.
Simultaneously, the risks associated with physical currency are declining. In 2025, Latvia detected 1,040 counterfeit euro notes and coins—a 20% decrease from 2024. The total value of these counterfeits fell by 24% to 21,085 euros. Aleksandrs Antiņš, head of the Money Technology Department at Latvijas Banka, noted that the euro remains a highly secure currency, with the chance of encountering a fake note remaining minimal.
The Digital Euro: Legislative bottlenecks
While the infrastructure for a Digital Euro is being built, its arrival in consumer wallets remains delayed by political friction in the European Union. Reinis Vecbaštiks, a modern payments expert at Latvijas Banka, explained that the project is split between technical development by the European Central Bank (ECB) and legislative drafting by EU institutions.
The primary hurdle has been the European Parliament, where debates over the design of the currency—specifically whether to prioritize an offline-only version to avoid competing with private banks—have slowed progress. While a February 10, 2026, vote confirmed support for both online and offline versions, complex negotiations regarding holding limits and compensation models continue. If regulations are finalized in 2026, the actual issuance of the Digital Euro may not begin until 2029.
Crisis readiness in a digital age
Despite the rush toward digitization, there is a growing emphasis on “financial resilience” during crises. Ilze Posuma, a member of the board of Latvijas Banka, has highlighted the importance of maintaining access to funds during telecommunications failures or natural disasters.
Awareness of offline payment solutions—which allow card payments at specific pharmacies, gas stations, and stores even without a network connection—rose to 29% in February 2026. However, the central bank continues to advocate for a hybrid approach to safety. Currently, 66% of Latvians follow the recommendation to retain enough physical cash at home to cover basic needs for one week in the event of an emergency.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice.
The next major milestone for the region’s payment landscape will be the potential finalization of the Digital Euro regulations by the European Parliament in May 2026, which will determine the technical roadmap for the coming years.
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