Comment by tuetuopay

Well, yes, we pay "cash" in the sense we pay direct debit. So literally the same as you, we tap the card. Except we don't have to keep track of the credit balance at the end of the month: money's taken directly from the account. The bank app shows you have enough? You're set.

As to how, in the financial term: we europeans don't really have the credit culture the US has. Having a credit is something very last resort, especially for "trivial" stuff (e.g. christmas shopping, to keep your example). Most europeans will have one or two credits tops: real estate loan, and sometimes car loan. Companies (mostly US) start offering payments spread over multiple months, but it does not really have a high penetration (at least in France), being in small useless debts is something we avoid like the plague.

And how do we have enough money in the bank? We just shop after payday, not after. Or, for most people, we keep a somewhat constant amount in the daily account. It's just another way of managing your own money.