General

According to a report by the Spanish website on August 17, cash is rapidly losing ground, but is its end imminent? As alternative payment methods such as credit cards, payments via apps or mobile phones continue to evolve, fewer people continue to use cash. The latest survey data from the Bank of Spain shows that 35.9% of citizens believe that cash is their most commonly used payment method, while 54% choose bank cards. Some economies are even close to saying goodbye to paper money.

Sweden From 2011 to 2020, the use of cash among Swedes has dropped from 39% to 9%. The problem is that while most people are ready for a cashless Sweden, there are also rural areas that resist phasing out cash. As a result, the Swedish government is seeking to slow down the transition, lest this major change leave parts of the population behind. Even so, Sweden has not given up on the ultimate goal of full digitization, leading the world in the field of digital currency (“e-krona”).

Norway According to Norges Bank, Norwegians only use banknotes or coins in 3 to 4 percent of transactions. While they are one step closer to full digitization, they are currently releasing the gas. Since the outbreak of the new crown epidemic, Norway's consumer rights protection agency has received complaints about situations such as being unable to pay for public transportation or buy coffee with cash, and the country's association of pensioners has expressed dissatisfaction and concern over the trend.

According to data from the Netherlands Payment Association, the usage rate of bank cards has exceeded 75%, and it is estimated that by 2024, bank card payments will reach 196.3 billion euros. In addition, mobile payments are growing strongly, with this type of transaction increasing by 30% last year. Banks in the Netherlands are trying to push customers to quickly switch to digital banking to save on structural costs such as office space and ATMs. The Netherlands already has 89% digital customers, compared to the European average of 60%.

Seoul, South Korea is a city where cash is a thing of the past. The Asian country is aggressively advancing the government's roadmap for digital payments, with cash in circulation at just 40% of the total, a record low. Cash also only accounted for 17% of total national transactions. South Korea is driving this shift with a powerful mobile payment company and a digital currency experiment called S-Coin.

Canada America also has an example of a move towards the end of cash: Canada. Visa says Canadians are "ready to stop cash" because the country has "one of the highest credit card payment penetration rates (70 per cent) in the world." In 2021, credit, debit and prepaid cards together account for 60% of all transactions in the country. Electronic payments accounted for 12%.

Australia Australia is also a good example. The RBA's June Consumer Payments Survey showed that the proportion of personal cash payments nationally fell from around 75 per cent in 2007 to around 30 per cent in 2019.