Shawn Bradley 
Today, we seem to be moving further and further away from cash payments – sinking deep into the diverse universe of digital currency instead. The introduction of digital payment to the world has created so many opportunities for industries and individuals alike that it seems cash may no longer matter. Let’s look into how often people are still using cash as a form of payment.
Cash Use
The answer, like most things in economics, is nuanced. While many do believe – from the looks of it – that cash use is declining, it’s far from dead. Some regions have experienced a rise in the use of cash. The UK had a 7% rise in cash payments in 2022 – probably due to concerns about inflation and budgeting. Many other countries are still using cash daily. Africa, Latin America, and the Middle East are among the world’s top users of cash.
Recent studies from the International Monetary Fund have begun showing a shift towards electronic payments, particularly among younger demographics. In the US nearly 40% of people report using no cash in a typical week, a huge difference from 24% just a decade ago.
Some governments have also taken steps to encourage a shift to digital payments. Brazil, India, and Thailand are among those that are looking to step away from using cash. Other governments are against a complete changeover from cash to digital payments because of financial inclusion. Not everyone will have access to the facilities that make digital payments possible.
Online Payments Take Center Stage
Though governments have differing opinions and while cash continues to be a viable form of payment, the digital world is growing. People are making the shift to digital or maintaining a balance between cash and online payments. E-commerce is booming, and many new ways of making payments that didn’t exist some years ago are making headway. Many industries have now taken to the internet and have embraced online payments. Here’s what they’ve done:
- Online Gambling: Betting sites typically offer a mix of traditional and digital options. While credit cards are a common choice, some online casino players prefer e-wallets because of faster processing and better security. Crypto is also gaining popularity in some online gambling platforms. Players can now enjoy any online casino with real money games and the possibility to take their very real earnings out into the real world to make use of them. Vlad Grindu explains that these sites typically accept credit cards, debit cards, bank transfers, and a variety of crypto options. There are even a number of dedicated Bitcoin casinos that have completely done away with traditional banking systems and only accept crypto deposits and withdrawals.
- Transportation: Public transportation systems worldwide have welcomed contactless payment with open arms. Riders now tap their bank cards, or mobile wallets on fare readers at stations or on buses. Gone is the needless fumbling with cash, the futile hunt for loose change, or purchasing separate paper tickets.
- Food Delivery: Food delivery apps are all about convenience, and what better than a super convenient way to pay for your delivered meal? With a few taps, customers can complete their orders without manually entering any details. No more rummaging for wallets or remembering credit card numbers, making the checkout process a breeze.
- Streaming Services: Most streaming services like Netflix and Disney+ rely on their users paying a monthly or annual fee to enjoy a library of movies, TV shows, documentaries, and more. To give their customers an uninterrupted viewing experience, most of these services use recurring payments. Once users link their credit cards to their accounts, they can forget about the money and just seamlessly enjoy the endless entertainment.
- Financial Technology: Apps like Venmo and Zelle are popular because they allow users to send and receive money quickly and easily. Gone are the days of writing checks, waiting for transfers, or needing cash to settle a debt with a friend. P2P apps offer instant and seamless transactions, perfect for splitting bills, paying for group outings, or sending quick gifts.
- Business-to-Business: While checks are still used sometimes, online payment gateways are the next level for faster, more secure business payments. Some businesses have also begun using credit cards, which allow them to have extended payment terms.
- Travel and Hospitality: Online travel agencies depend on online payments, allowing users to reserve flights or hotels with a few clicks, and to pay directly through the platform using bank cards, or digital wallets – think of TripAdvisor and Booking.com. Many hotels now offer contactless payment options at check-in and check-out. Guests can use their mobile wallets or tap their credit cards on designated terminals to complete the transaction quickly and efficiently.
- Non-Profits and Donations: Non-profit organizations now offer online donation options because receiving payments online is much more convenient and it makes each payment easier to track. Supporters also find it more suitable because they can contribute to a cause they care about at any time, from their computers or smartphones. This removes all kinds of barriers and hurdles, leading to an increase in overall donations.
Why Cash Matters
The world is shifting from physical interactions to digital ones every day.
Even the nature of work has changed from on-site jobs to hybrid positions and even completely remote ones. This has opened doors to digital payment all over the world. Despite these changes, cash remains necessary. Besides the obvious issue of financial inclusion, there are some disadvantages to having money online.
- Security Concerns: Anything on the internet can be hacked and ransomware attacks are more popular now than ever. Hacks and cyber attacks usually happen quickly and unexpectedly. In the blink of an eye, all your savings could be lost forever.
- Privacy: Using cash helps leave a certain degree of anonymity. When one makes digital payments, your name and details are always included with that information.
- Crises: Sometimes power outages, technical glitches in the system, or internet disruptions can leave you stranded if all you have is digital money. Cash on hand provides an adequate backup.
