Earlier quoted context omitted.
No. You are not misunderstanding me. You are right that there are several European countries with a well spread normalization of using credit cards. In the European countries that I've spent most of my life, and which are also some of the biggest ones (Germany, France, Spain) have still IMO a poor acceptance of credit cards. -- In contrast, for example, in London you can pretty much live without cash whatsoever.
What is so bad to pay with Cash? It's anonymous and sellers don't pay extra charges to any US company (Visa, PayPal, etc.). Also most of the restaurants hide their revenues from tax authorities (it was recently in the news) - otherwise the prices will be much higher, like our neighbors have (France, Italy).
The EU also recently introduced and controls on credit card fees (that a merchant pays) with the aim of making it as cheap to transact as cash. That is of course only true if cash isn't being used to avoid taxation.