A recent study by the IMF shows that in some countries, electronic payments are now surpassing cash payments. During 2015, 50% of purchases were made with credit cards and debit cards, and only 5% were made with cash. According to the report, the Dutch banks and retailers want this ratio to rise to 60% by 2018. The main reason is that these methods are cheaper and easier to use than cash. Here are some examples of countries where the ratio of electronic payments is approaching 60 percent.
In the Nordic countries, the number of people using online payment services exceeded the number of people using cash. Some cities have even banned on-board cash payments on public buses. However, in other countries, the number of consumers making online payments exceeds the number of people using cash. This is because of privacy concerns. Central banks consider the supply of paper money as one of their core activities and regulate the industry heavily, deterring foreign firms from investing.
The number of people who use cash varies by country. In countries like the Nordics, about 97% of the population has an account. In some countries, the share of cash has fallen from 89% in 2013 to 77% in 2016. In contrast, in the US, the proportion of cash payments has increased, with online purchases exceeding the number of cash transactions in some countries. This trend is not confined to the Nordic region, where the average internet penetration is 97 percent.
Another factor affecting cashless payment rates is the use of contactless digital payment systems. In these countries, the use of digital payments has increased in the past few years, and e-commerce initiatives are increasing the amount of cash consumers spend. In the UK, the proportion of cash transactions in the UK has increased by nearly two-thirds, indicating that online payments have become the preferred method of payment. In the Nordics, the number of card users has increased by over 40%.
The use of cash in some countries is declining. However, the usage of credit and debit cards in the UK is growing, while the use of cash in the US is on the rise in other developed nations. There are many differences between these two types of payments, and different countries have different views on privacy. In Sweden, for example, more than 50% of people use a smartphone to make payments. The use of credit and debit cards is mandatory, while the adoption of debit cards is optional.
The use of cash is a major issue in some countries. In Sweden, people’s fundamental rights to privacy are protected by cash, and in some places, it is against the law to accept credit cards. In other countries, the use of cash is a sign of discrimination. In Japan, many residents consider cash to be a form of discrimination for people who do not have a bank account.
In addition to online payments, some countries have banned cash payments on public transport. In Estonia, for instance, on-board cash payments on public buses have been banned. These changes have made cash-free societies more comfortable with new technology and sharing data with each other. The country’s cash-free culture has made it popular with young people. Further, the countries with high internet penetration have a lower use of cash than less digitized societies.
Cash isn’t an entirely outmoded payment method. In some countries, it’s a good way to pay for goods and services that you need infrequently. In other countries, there are restrictions that restrict the amount of cash a person can pay with cash. In these cases, using cash may be problematic for some people. In these circumstances, the use of cash is often discouraged.