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Cashless Society from Around the World

DIGITAL VENTURES October 31, 2017 3:16 AM

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We recently discussed overviews and updates of the cashless society in different areas such as Europe and Asia. Today, we will share the path towards a cashless society from countries around the world. The infographic below makes it easy to understand the facts, figures, and movements on how cash is gradually fading away.

cashless-society_1.png

 

Cashless Society Updates Around the World

Top 10 most cashless countries

Credit Card Users

  • Canada - Over 2 credit cards/person

  • USA - Over 2 credit cards/person

Debit Cards Users

  • Australia - An average of 1.75 debit cards/person

Contactless Card Usage

  • France - 39% of cards in France are contactless

  • Japan - 26% of cards in issue now are contactless

*Contactless Cards function without having to swipe or insert into the card reader.

Cashless Payment Growth Rate

  • China - Highest growth in cashless payment

Cashless Payments

  • Sweden - 59% of transactions are completed through non-cash methods

  • Germany - A third of all consumer transactions are completed using cashless methods

Awareness of Cashless Payment Methods

  • Russia - 57% of Russians are aware of the smartphone payment methods available

  • UK - 47% of people in the UK are aware of the smartphone payment options they can use

Europe vs. Asia

Europe - It is forecasted that by 2020, only 0.5% of the value of all transactions in Sweden will be in cash.

Sweden is using cash in stores at 18% of transactions, half the number 5 years ago.

5 years ago

  • Convenience and speed -  Safety from theft

Asia – India, Singapore, China

Indian government demonetized 500 and 1,000 rupees banknotes which accounted for 86% of the total banknotes circulated in India’s cash economy.

 

Singapore prepares to allow contactless credit or debit cards to be used for payment on public transportation by 2018.

 

In China, fast food restaurants are outlets where mobile payments are mostly being used.

 

Digital Wallet Landscape in Europe and Asia

Shows digital wallet services launched in different countries as of June 5, 2017.

Information from ForexBonuses.org and The Strait Times

  

Top 10 most cashless countries

ForexBonuses.org used several metrics to measure the country that ahead of the trend in becoming a cashless society. The examine the number of credit cards per person, amount of debit cards per person, cards in issue with contactless functionality, the growth of cashless payments, payment transactions made using non-cash methods, and people aware what options they have available to use. Here are the top winners.

Canada and USA – There are over 2 credit cards per person.

Australia – There are an average of 1.75 debit cards per person.

France – 39% of cards in France have contactless technology.

Japan – 26% of cards in issue now have contactless technology.

China – They have the highest growth in cashless payment.

Sweden – 59% of transactions are completed through non-cash methods.

Germany – A third of all consumer transactions are now completed using cashless methods.

Russia – 57% of Russians are aware of the smartphone payment methods available.

UK – 47% of people in the UK are aware of the smartphone payment options they can use.

Cashless Society in Europe and Asia

In Europe, Sweden is at the forefront and is clearly moving towards a cashless society.

  • It is forecasted that by 2020, only 0.5% of the value of all transactions in Sweden will be in cash.

  • At present, Sweden is using cash in stores at barely 20% (18%) of transactions, half the number 5 years ago.

  • Most Swedish agree that the cash-free trend makes transactions faster and makes them safer from thefts. Nevertheless, there are people who prefer using cash due to concerns regarding cybersecurity, the proportion is around 3 of 10 of the people.

In Asia, several cashless society incidents and movements have occurred. Outstanding players in the past 2-3 years are China, India, and Singapore.

  • In 2016, the Indian government’s significant movement was demonetization or cancellation of the 500 and 1,000 rupees banknotes which accounted for 86% of the total banknotes circulated in India’s cash economy. The main reason was to eliminate corruption.

  • In 2017, Singapore prepared to allow contactless credit or debit cards to be used for payment on public transportation such as buses and subways. It is expected to fully launch in 2018.

  • In China, fast food restaurants are outlets where mobile payments are mostly being used. The usage is at 74% with cash and credit card at 16% and 6% respectively.

  • Also in China, in terms of retail stores, convenient stores have the highest frequency of mobile payment at 68% followed by supermarkets (63%) and department stores (62%).

Digital Wallet: An option for the new generation in Europe and Asia

The digital wallet is a new payment method that doesn’t require banknotes. Both online and offline, users can combine every type of payment methods such as credit cards and bank accounts into a smartphone. The technology used to connect the smartphone to the reader is the NFC system and barcode reader. Therefore, when users use the digital wallet on smartphones, simply turn on the application and place it near the reader to complete the transaction. This is one type of contactless that involves the security of tokenization that transcribes the actual card number into a virtual one to prevent fraud.

The infographic shows the 3 popular digital wallet providers, Apple Pay, Samsung Pay, and Android Pay in different countries as of June 5, 2017.

UK offers Apple pay, Samsung pay, and Android pay

Sweden offers Samsung pay

China offers Apple pay, Samsung pay, and Android pay

Thailand offers Samsung pay

Singapore offers Apple pay, Samsung pay, and Android pay

India offers Samsung pay

Find out more about FinTech and updates from all over the world at the DV blog.

 

References:

ForexBonuses.org

The Straits Time