Are cash transactions, especially smaller ones, almost a thing of the past in the US and in many countries?
It appears that this may be the current state of affairs. In one recent study appearing in Global Payments Report 2024, the data shows that the number of cash transactions undertaken in the US and in many countries continues to fall. (See Global Payments Report 2024.)
In this Report as stated in Visual Capitalist, more and more transactions are undertaken by means other than the payment of cash.
As noted in the above Report:
“Digital wallets retain global supremacy in
e-commerce, reaching 50% of global transaction
value in 2023. Wallets are the fastest growing
e-commerce payment method with a projected
15% CAGR through 2027.
Credit and debit cards share of e-commerce
transaction value as a direct payment method are
projected to decline slightly through the forecast
period to 2027.”
The Report went on to state:
“Consumer attraction to digital wallets isn’t a turn
away from cards. In card-dominated markets,
card spend is simply shifting to digital wallets
like Apple Pay, Google Pay and PayPal. Viewed in
total, card transaction values are at an all-time
high and continue to rise.”
Consumers in the US will continue to use digital wallets and credit/debit cards to pay for items as opposed to carrying cash.
The implications of these type of payments as compared with the use of cash remains to be seen. There is no doubt that we are moving to a cashless society.
By
Professor Mark Lee Levine, University of Denver
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