How Countries Are Moving Away From Cash

Cash is still legal tender almost everywhere, but in many countries it is quietly becoming a minority choice. Card payments, phone wallets and instant bank transfers have taken over everyday purchases, and the pandemic accelerated the shift as people avoided handling money. Whether a country is heading toward being cashless depends on very different paths, so the clearest way to see where things are going is to look at a few countries that have moved in different directions.

Sweden: almost there

Sweden is often cited as the world's most cashless society. According to Sweden's central bank, the Riksbank, only a small share of Swedes said they had used cash for their most recent purchase in recent surveys, and many shops, cafés and even some banks no longer handle cash at all. The mobile payment app Swish, launched by Swedish banks in 2012, is used for everything from splitting restaurant bills to paying at market stalls. The rapid decline has also raised concerns. The Riksbank and the Swedish government have warned about vulnerability to outages and cyberattacks, and about people who struggle with digital payments, such as some older people. Sweden has since required major banks to continue offering certain cash services, and authorities have encouraged households to keep some cash for emergencies.

China: the super-app model

In China, mobile payments jumped from cash almost directly to phones, largely skipping the credit card era. Alipay and WeChat Pay, used by scanning QR codes, became part of daily life for paying in shops, restaurants, taxis and even street stalls. The ease of these apps also created problems for visitors and older residents without them, and in recent years Chinese authorities have pushed businesses to keep accepting cash and to make it easier for foreign visitors to link international cards to the apps.

India and Brazil: instant public payment systems

India's Unified Payments Interface, known as UPI, was launched in 2016 and lets people send money instantly between bank accounts using a phone number or QR code, typically at no cost to users. It now processes billions of transactions every month, and small vendors across the country display QR codes. Brazil followed a similar approach with Pix, an instant payment system launched by the central bank in 2020, which was adopted by a large majority of Brazilian adults within a few years. Both show how a public, low-cost payment network can rapidly change how people pay, including people who previously relied on cash.

The United States: gradual decline

Cash use in the US has fallen steadily but more slowly. The Federal Reserve's annual Diary of Consumer Payment Choice has found cash's share of payments declining over the past decade, with cards dominant and mobile wallets growing. Cash remains important for some groups, particularly lower-income households, older adults and people without bank accounts. Concerns that cashless businesses exclude these customers have led several states and cities, including Massachusetts, New Jersey, New York City, Philadelphia and San Francisco, to require most retail businesses to accept cash.

Why the shift is happening

Convenience: tapping a card or phone is faster than counting change, and online shopping requires digital payment.
Cost for businesses: handling cash involves counting, storing, transporting and insuring it, although card fees are a cost too.
Record keeping: digital payments create automatic records for budgeting, expenses and taxes.
Security: carrying less cash reduces the risk of theft, and lost cards can be cancelled.

The case for keeping cash

Inclusion: millions of people have no bank account, poor internet access or limited digital skills.
Resilience: power cuts, network outages and cyberattacks can stop digital payments, while cash keeps working.
Privacy: cash payments leave no data trail, while digital payments are recorded by banks, payment firms and sometimes advertisers.
Budgeting: some people find it easier to control spending with physical cash, which is the idea behind the cash envelope method.
Fees: card acceptance fees are often passed on to customers through higher prices.

Central bank digital currencies

Many central banks have studied issuing their own digital currency, a digital form of cash backed directly by the central bank. The European Central Bank is preparing a possible digital euro, and China has piloted a digital yuan, known as e-CNY. Supporters argue a public digital currency could keep payments in public hands as cash declines, while critics raise privacy and banking-stability concerns. In the United States, an executive order signed in January 2025 directed federal agencies not to develop a central bank digital currency.

What it means for you

Few countries are likely to abolish cash entirely in the near future, but having fewer places that accept it seems likely to continue. Practical steps include keeping a small amount of cash at home for emergencies and outages, setting up a backup payment method in case a card or phone fails, and turning on transaction alerts so you notice fraud quickly. When traveling, check which payment methods are common at your destination, since a card that works everywhere at home may not work with a local QR code system.