Hardly any cash any more - contactless payment is encouraged now, especially since Covid-19 made cash so filthy (I was a cash carrier by habit - always preferred to feel real money before I spent it). You don't even have to put your PIN in for anything under 50 euros. But the automatic egg-and-potato shop machine near the windy miller's windmill (the BEST eggs - you can wave to the chickens in the orchard as you drive past) still takes only cash. If I need small change (for example to leave the right amount of cash for my cleaner) I feed my bank notes from the ATM into the egg machine and get eggs and coins in exchange. Don't ask me about ApplePay - that's beyond my knowledge. Probably more common in the cities but I don't go there any more. And as I think I've said, you can hire a car with a credit card - I would imagine. Never tried it here.
But that won't put a lien on future responsibilities like a trashed hotel room or a dinged-up car. That's why Avis etc want to run a card here. And I wouldn't be caught dead using a phone to pull my cash out of my bank account. Two whole levels of potential screwery in one transaction - that could be the bank's problem instead. Matbe I'm super-sensitized from reading all the uckfups in the trade papers, but phone payments against a bank account? Madness.
According to This web site "Hiring a car in Netherlands is a must in order to get around. Debit card car rental can be tricky to find as it’s rare that you come across a company that will let you hire a car without a credit card in Holland. "
Which suggests that Holland is like anywhere else in that the norm is you need a credit card to hire a car (but that this company might let you do so with a debit card; restrictions apply). I knew Steve Martin couldn't be that wrong.