The Rise of digital payments over cash

The world is rapidly changing and the payment system along with it, especially lately. More and more consumers opting for digital payment methods over traditional cash transactions. But is this true?

According to European Central Bank, cash remains the most widely used payment instrument in the eurozone, accounting for about two-thirds of all transactions by value, but digital payment method increased by 12.5%.

Cash remains the most widely used payment instrument in many countries, particularly in developing nations and some parts of Europe.

For example, in many African countries, cash is still widely used, while digital payment methods just gaining popularity.

- Sweden: cash has been declining rapidly in recent years, and many businesses and consumers have adopted digital payment methods instead. According to a 2019 report, only 1% of all transactions in Sweden were conducted with cash.

- United Kingdom: A 2020 report revealed that almost two-thirds of all payments in the country are made with cards, while only 21% are made in cash, because consumers increasingly choose the convenience and security of digital payment methods.

- Canada: A 2019 survey found that more than three-quarters of Canadians said they used cards for most of their purchases, while only 17% said they used cash.

- Australia: the use of cards is also widespread, and cash is used less frequently. A 2020 report found that cards were the preferred payment method for most consumers, accounting for nearly three-quarters of all transactions by value.

Here is a fact: Canada is the most card-using country in the world, and Afghanistan has the lowest value of cards payments (2011–2021 data)

Despite the rapid growth of digital payment methods, cash remains crucial in many areas worldwide. But, most likely, cash usage will decline in the near future.