Cash Economy Trends and Analysis, Usage by Region and Future Outlook to 2028

Reasons to buy the ‘Cash Economy Trends and Analysis’ report:

• Get a comprehensive overview of the global cash economy in 2024.
• Explore the global trends impacting the usage of cash.
• Access the proportion of cash transactions by volume in key regions and countries.
• Obtain insights into the future of the cash economy to understand it better.

How is our ‘Cash Economy Trends and Analysis’ report unique from other reports in the market?

• Understand how cash is being used across the globe today.
• Identify key trends influencing the decline in cash usage over time.
• Learn about the role cash will continue to play in society in the future.

We recommend this valuable source of information to anyone involved in:

• ​​​​Banks, Bankers – Banking Valuechain
• ​Digital Payment Companies/Insurance Companies/​Retail Banks
• Financial Service Technology Leaders and Startups
• Business Development and Market Intelligence
• Investment Analysts and Portfolio Managers
• Professional Services – Investment Banks, PE/VC firms
• M&A/Investment, Management Consultants, and Consulting Firms

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Cash Economy Trends and Analysis Report Overview

Cash plays an important role in the economy, especially for the underserved population and individuals who are not tech-savvy. However, innovations including contactless cards and mobile wallets have made digital payments easier, safer, and more convenient than ever, leading to the declining use of cash. The COVID-19 pandemic further accelerated the decrease in cash usage. Both the public and private sectors made a concerted effort to promote digital payment methods to reduce virus transmission.

The “Cash Economy Trends and Analysis, Usage by Region and Future Outlook to 2028” report examines the factors that have motivated the shift from cash towards digital payments. It also looks at countries that still heavily rely on cash transactions and the reasons for this. Finally, the report provides a forecast of the payments landscape through to 2028 and examines the factors influencing cash usage in the coming years.

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Global Trends in Cash Usage

Declining cash usage, the popularity of digital payments, and financial inclusion initiatives are a few of the global trends influencing the cash economy currently.

• Declining cash usage: Growth in digital payments including debit and credit cards, mobile wallets (such as Apple Pay and Google Wallet), and online payment platforms (such as PayPal and Venmo) have made transactions faster and more convenient compared to cash. Innovations in the banking sector through tools such as online and mobile app banking, and features such as sending money to friends give customers greater control over their money without the need to use cash. Furthermore, contactless payment technologies, which saw a surge in usage during the COVID-19 pandemic since they reduced physical contact, have also been major drivers in the decline of cash.
• Popularity of digital payments: There has been a steady increase in the number of digital payments over the last decade, and they now account for the majority of all transactions. This is the result of continued investment in telecommunications infrastructure and technological advancements. Growth in the proportion of the population with access to the internet makes it easier for businesses to begin accepting digital payments in areas that were previously inaccessible. In turn, this fuels consumer demand for digital payment solutions to use more efficient and convenient payment methods.

Volume and Growth Rate of Cash Transactions, 2013-2028f

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Cash Usage in 2024

A large number of cash transactions are still occurring every year as cash offers advantages to individuals who prefer it as a payment method. It is universally accepted and can be used from urban to remote rural areas without the need for electronic infrastructure. Additionally, there is no need for technology, such as smartphones, which makes it accessible to all demographics. Cash also provides more anonymity than digital transactions since it does not require personal information to be shared or stored. Finally, cash can offer consumers greater control over their spending, since the physical act of handling money feels more tangible.

Several Western countries such as Italy, Spain, and Germany have much higher levels of cash usage compared to other countries. Factors such as consumer preferences, privacy concerns, and engrained spending habits are driving the reliance on cash in these economies.

Proportion of Cash Transactions by Volume in Western Economies

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The Future of Cash

Cash will remain an important payment method for the underserved and unbanked populations, especially the elderly and those living in rural areas. As a result, governments will need to protect access to cash, as well as the right for consumers to pay using cash. There have already been examples of such regulation in countries with high levels of digital payments.

For example, the UK has enacted several measures to protect consumer’s access to cash. The Financial Services Act 2021 allowed traders to offer cashback without a purchase, without needing to be authorized by the Financial Conduct Authority (FCA). This allows customers to use their card in exchange for cash up to a certain amount without needing to purchase any items.

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Key Highlights

• Cash is being replaced by mobile wallets and card transactions around the world. India is a pre-eminent example in this regard as the country has more than doubled the volume of mobile wallet transactions every year between 2012 and 2020.
• Instant payments are skyrocketing in countries such as Brazil and India.