Card Payments Are Catching Up to Cash in Bulgarian Retail

Cash payments still account for the largest share of Bulgarian retailers’ revenue, but the trend is gradually reversing. Businesses expect card payments to surpass cash in the coming years, and the number of POS terminals in the country has already grown by 30% over the past three and a half years, according to data from Payments Europe and Visa.

Cash continues to be a significant part of daily commerce in Bulgaria, but its share is gradually declining. Currently, cash payments account for 46% of the turnover of the surveyed merchants, while card payments account for 37%. The business community, however, expects this ratio to reverse: in five years, the share of cash is expected to drop to 29%, while that of card payments is expected to reach 48%.

This is one of the clearest signals in a new study by Payments Europe on the Bulgarian payment market. The data paints a picture of an environment in transition– traditional habits remain strong, but the preferences of businesses and consumers are increasingly shifting toward digital payments.

This change is already evident in the infrastructure. According to Visa, from the launch of its “Bulgaria BezBroy” program in December 2022 through June 2026, the number of POS terminals in Bulgaria has grown by 30%. As of December 2025, merchants participating in the initiative accounted for 10% of all active POS terminals in the country, the company reports.

Cash Leads in Turnover, Cards in Preference

The paradox is that cash still accounts for the largest share of sales, but when merchants are asked how they prefer to be paid, cards come out on top. 76% of them list card payments among their preferred methods, compared to 71% for cash.

The reason isn’t just convenience. For 82% of the merchants surveyed, accepting cards reduces the risk of fraud and theft, and 80% associate card payments with higher sales. Two-thirds also appreciate the elimination of some of the costs associated with handling cash.

The issue of cost also turns out to be less clear-cut than the traditional debate over bank fees would suggest. 84% of merchants say they understand what fees they pay for accepting cards, and 75% consider them justified given the benefits. More than half believe that handling cash ultimately costs them more.

The expansion of the POS network in recent years has sought to remove one of the practical barriers to this transition—the lack of terminals among smaller merchants. This is precisely the focus of the “Bulgaria BezBroy” program, which Visa has been developing with banks, payment institutions, public organizations, and NGOs since late 2022.

Expanding the capabilities for accepting digital payments means much more than just adding new POS terminals,” commented Petar Krilchev, Visa’s manager for Bulgaria.

Bulgarians aren’t quick to give up cash payments

From the consumers’ perspective, the picture is similar. Cards and cash practically coexist—over the past year, 90% and 86% of respondents, respectively, have used them to pay.

When it comes to choosing a payment method, however, cards have a clear advantage. 71% of consumers say they would pay with a card in a store even if they were carrying cash. And when the various methods are ranked by convenience, 62% choose cards and only 20% choose cash.

Bulgaria, however, retains one particularly persistent cash habit – paying for online purchases upon delivery. 41% of consumers prefer to pay for their online purchases in cash in advance or upon receipt. This is nearly double the reported 22% average for the other European markets in the study. When paying directly to a courier, 78% continue to choose cash over cards.

Thus, the digitization of payments is much more advanced in brick-and-mortar shopping than in the final stage of e-commerce.

The Most Important Factor

Trust remains a key factor in choosing a payment method. For 49% of consumers, security is the top priority, and cards excel in this area – 74% trust them more than other payment methods.

With newer solutions, however, uncertainty is higher. When it comes to instant payments, 79% are concerned about the irreversibility of transactions, and 56% are concerned about fraud, even though 70% expect to use them more often. Interest among merchants is also high, but mistrust of large tech companies persists: only 21% of consumers consider them reliable when it comes to handling personal and financial data.

Translated with DeepL.