Is it better to use cash or card in Spain?

If you’re getting ready for a holiday in Spain, you’re likely busy packing and planning the perfect español itinerary. However, another thing you should consider is doing some research in order to work out your travel budget. Specifically, getting to know the difference in financial habits between the UK and Spanish locals.

Cash is the leading payment method in Spain, but credit cards are a close second. However, cash use is slightly declining, so it can be hard to determine what payment method you should rely on. In this article we’ll dive into more detail to help answer the question - Is it better to use cash or card in Spain?

We’ll also show you a cost-effective way to manage your spending in Spain. For any international purchases, whether online or in person, you can rely on the Wise card. You can even withdraw cash like a local for low fees* at the mid-market exchange rate.

How cash-centric is Spain?¹

Spain is known for still having a high share of cash payments, especially when compared to other European countries. The usage of debit cards has dropped in the past few years, but the popularity of credit cards and mobile payments has grown.

At the moment, cash accounts for almost 40% of POS payments in Spain. It’s followed by credit cards and debit cards, while e-wallets follow at around 10%. Some predictions say that cash will remain widely used in Spain in the next few years, but digital wallets will gain traction.

Cash etiquette in Spain²

Tipping isn’t compulsory in Spain and it’s not considered rude not to tip. However, it’s appreciated if you do, since it’s seen as a reward for good service rather than an obligation.

Locals tip in cafés, restaurants, hotels and taxis. The usual amount is an additional 5-10% or just rounding up the bill. However, it’s uncommon to tip for small orders so if you’re only buying a coffee, you don’t need to worry.

You can usually include a tip when paying by card, but it’s best to leave it in cash. This way, you’re making sure that the person that served receives it.

Cash or card in Spain - the comparison

We’ve listed some situations where you’ll be paying for things in Spain. Here’s whether you’ll be able to pay by card, in cash or both:

Paying for…	Card 💳	Cash 💶
🚕 Taxis3	Usually, but check with the driver beforehand	Yes
🏪 Convenience stores	Yes	Yes
☕Coffee shops	Yes	Yes - often preferred, especially coins
🚌 Public transport4	Depends on the transport	Yes
🍽️ Restaurants	Usually, yes	Yes
💃 Flamenco show5	Usually, yes	Yes

Using your card in Spain at an ATM⁶

There are over 53,000 ATMs in Spain and they’re called cajero automático or just cajero.⁷ If you’re going to a big Spanish city, it will be easy to find them everywhere from shopping malls, train stations, and, of course, in banks.

Spanish ATMs usually accept all foreign cards. Withdrawal limits at Spanish ATMs vary, but they’re usually between €300 and €1,000 per transaction. Some ATMs don’t even have any additional fees for foreign cards.

It’s always recommended to choose to withdraw in the local currency without a currency conversion. This will mean you get a better rate, as the conversion will be done by your bank or card provider instead of the ATM provider.

Check out the latest GBP to EUR conversion rates below:

Will my UK debit card work in Spain?

Yes, your UK debit card will likely work in Spain. However, keep in mind that some places might not accept cards at all.

Can I use my UK credit card in Spain?

As long as you go to a place that accepts cards, you’ll be able to use your UK credit card. Credit cards are the most popular payment method after cash, so chances are you’ll be able to use them pretty much anywhere.

Reasons to use cash in Spain

Cash is still the number one payment method in Spain. You’ll be able to use it everywhere and you most likely won’t find a place that doesn’t take cash. If you visit the Spanish countryside, this might be the only payment method available.

Keeping some euros on you is also important for leaving cash tips. Card tips are sometimes not possible, so this is a better option. Besides that, you can miss out on some authentic experiences if you go cashless, like buying from street vendors.

Reasons to use credit or debit cards in Spain

One of the primary reasons for using cards on your trip to Spain is safety. You’ll be able to enjoy yourself more since you won’t have to constantly think about pickpockets.

Also, some credit and debit card benefits include travel insurance, so check with your provider whether that’s the case.

Are contactless card payments common in Spain?⁸

Yes, they are fairly common among Spaniards. The limit for contactless card payments in Spain is 50 euros, the same as it is in other Eurozone countries.

Your Wise card can also be used for contactless payments in Spain. If you don’t want to carry cards with you, you can get the Wise virtual card with the same features.

Other payment methods in Spain

Besides traditional credit and debit cards, other payment methods are also available in Spain.

Mobile payment⁹

Some globally popular digital wallets such as Apple Pay and Google Wallet are used in Spain as well. If you use one of these apps, make sure they’re updated before your trip to avoid any issues.

Spaniards also use other mobile payment options, such as QR codes. This is particularly popular with young and digitally-savvy people. Essentially, customers scan a business’s QR code and pay via a bank transfer or a digital wallet.

For an additional layer of security, you could add your Wise virtual card to your wallet. It has all the benefits of a regular Wise card, but it exists in your phone only. You can freeze your Wise virtual card after every transaction, too.

Buy now pay later options (BNPL)¹⁰

BNPL is a payment method that’s gaining popularity in both Spain and the rest of the world. The locals are beginning to use foreign and Spanish apps that allow them to split their purchases into monthly instalments.

Some of the most popular BNPL options are Clearpay and Klarna, but many banks also offer this service.

What is the best way to pay in Spain: cash or card?

If you had to pick only one option between cash or card in Spain, it would be best to rely on cash. It’s a method that’s accepted everywhere, including small businesses and street vendors. It’s also the best way to leave tips.

However, it would be best to use both cash and cards on your trip to Spain. Each option has its advantages and you could choose which one is most convenient for each situation.

Spend like a local in Spain with the Wise card

Want to spend like a local in Spain without worrying about exchange rates and hidden fees? The Wise card might be just the option you were looking for.

The Wise card can be used for international payments, from your accommodation costs to daily expenses. It automatically converts your pounds at the mid-market exchange rate with only a small, transparent currency conversion fee*.

You can also use it to easily withdraw cash from the ATMs in Spain. Each month, you can make 2 withdrawals of up to 200 GBP for free. After that, there is a charge of 0.5 GBP per withdrawal. There’s also a 1.75% fee on any amount you withdraw above 200 GBP. Keep in mind, however, that additional charges may occur from independent ATM networks.

Spend like a local with Wise 💳

Cash or card in Spain - FAQs

Here are some of the most frequent questions about using cash or cards in Spain:

How cashless is Spain?

Cash is still the most popular payment method in Spain, but that might change in the following years.

Can I use my UK debit card in Spain?

Yes, you can use your UK-issued debit card in Spain.

Is it free to withdraw cash in Spain?

Most ATMs in Spain charge foreign card fees, but a handful of them offer free withdrawal. Always do your research before you withdraw.

Is it better to pay by card in euros or pounds in Spain?

It’s always better to pay in the local currency, so try to stick to euros.

Do you need cash for a taxi in Spain?

Taxis in big cities usually accept cards, but if you’re going off the beaten path, try to have some cash on you.

Can you pay using your phone in Spain?

Yes, mobile payments are becoming more popular in Spain.

Please see the Terms of Use for your region or visit Wise fees & pricing for the most up-to-date information on pricing and fees.

Sources used:

1. Statista - biggest payment methods in Spain
2. Forever Barcelona - tipping in Spain
3. Madrid Official Tourism Website - getting around Madrid by taxi
4. TMB Barcelona - public transportation payment methods
5. Seville Tickets - flamenco show ticket prices
6. ATM Fee Saver - cash and ATM fees in Spain
7. Statista - ATM count in Spain
8. Global Payments - contactless limits in Spain
9. Stripe - payment methods in Spain
10. Pay.com - top payment methods in Spain

Sources last checked on date: 17-Oct-2024