Going cashless seems inevitable, doesn’t it, but which countries are leading the way?
Let’s take a look at countries that are already largely cashless and how they are incorporating cashless behaviour into their daily lives. According to a report by GlobalData, some markets including Sweden, the UK and several Asian countries have rapidly shifted to cashless payments in recent years. Countries like Denmark and Norway were the first to introduce cashless payments, but the Scandinavian leader in becoming the first cashless country is clearly Sweden.
Interestingly, the Netherlands is the leading European country for cashless smartwatch payments, accounting for over 33% of all smartwatch transactions in Europe. The Scandinavian countries represent four of the 10 most cashless countries in Europe, with Finland in third place behind Switzerland. The way the Scandinavian countries are rapidly moving towards a cashless lifestyle is in stark contrast to the southern European countries, where cash is still a strong form of payment.
In this regard, the Scandinavian countries clearly stand out, and in most countries the use of cash is actually on the rise. The levels of cash in circulation can vary greatly between two countries with the same volume of non-cash transactions. A generally accepted indicator of how close a country is to a “cashless society” is the number of cashless payments or transactions between people that take place in that country.
In Germany, a third of all payments are made by non-cash, and a score of 4.14/10 put the country in eighth place. The countries (out of 46 participants in the survey) where people were least supportive of cashless payments were the Philippines and Egypt at 33% each and Morocco at 34%. Cash was used in 68-87% of payments in Japan, potentially implying the inability to pay by card or other non-cash means for certain goods and services.
After the news that Sweden already intends to become the first cashless company, only 11% of the participants did not look shocking. The only reason Sweden didn’t come out on top is that despite the government’s very aggressive cashless policies, Finland, Norway and South Korea have slightly higher internet banking penetration or credit/debit card usage. .
The second group of countries have above-average spending on cash, but first they need to increase their digital readiness and become more “digitally inclusive” before they can realize value by moving away from cash. Next, we propose to focus on those countries that are digitally most ready to move to a cashless alternative. GlobalData, a leading data and analytics company, has predicted which countries are most likely to lead the way in the transition to a truly cashless society.
More and more countries are using cashless payments these days, including credit card purchases, contactless payments, mobile banking apps, and digital options like Apple Pay. Countries most likely to support a cashless society The number of people making cashless payments has risen sharply over the past decade, with the number of Britons paying in cash falling from 63% to just 34%, according to the Cash Access Survey.