Changes in interest rates below the zero lower bound could have potential effects onthe payments market by making cash more attractive for consumers as a medium ofpayment and wealth storage. This paper studies how cash usage has been affected bythe recent introduction of negative interest rates in European countries. Using a difference-in-differences methodology over the period 2006 - 2018, results show anincrease in cash usage in negative interest-rate environments. We also find that theincrease in cash usage was less pronounced in countries with superior monitoringcapacity of banks (i.e. high levels of financial intermediation).