The shift toward a cashless economy is accelerating around the world. In the U.S., digital payments are reshaping how consumers and businesses interact. In retail and transportation, mobile wallets and contactless taps are fueling efficiency and convenience. Meanwhile, government-backed digital payment systems are boosting financial inclusion in emerging markets. Explore below how the numbers tell the story of a world steadily moving beyond cash.
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- 86.9% of U.S. point‑of‑sale transactions were cashless in 2024.
- Worldwide, 85.0% of POS payments went cashless in 2024.
- In 2025, digital payments in the U.S. are expected to reach $3.15 trillion, up from $3.073 trillion in 2024.
- Globally, digital payment transaction value is projected to hit $20.09 trillion in 2025.
- By 2025, mobile wallet usage is expected to cover over 55% of all global e‑commerce payments.
- 4.8 billion users, nearly 60% of the world’s population, are forecast to be using mobile wallets by 2025.
- Japan’s cashless payments reached 42.8% in 2024, surpassing its target early.
Recent Developments
- U.S. national parks are shifting to cashless operations. The Guadalupe Mountains Visitor Center stopped accepting cash in late 2024.
- Japan exceeded its government goal of 40% cashless transaction rate by reaching 42.8% in 2024, prompting acceleration of payment infrastructure modernization, including CBDC pilots.
- In Sweden, only 10% of transactions use cash, yet security concerns have prompted authorities to urge citizens to keep some cash for emergencies.
- Australia saw cash payments drop to 13%, down from 70% in 2007, and projections suggest functional cashlessness by 2030.
- The Reserve Bank of Australia foresees a 10‑year path toward cashlessness, signalling widespread acceptance of digital payments.
Adoption of Digital Wallets Among Gen Z in the U.S.
- 93% of Gen Z adopted P2P payment apps in both 2023 and 2025.
- Mobile wallet adoption rose from 85% in 2023 to 91% in 2025.
- In 2023, only 24% of Gen Z used digital wallets 5+ times per month.
- By 2025, frequent usage jumped to 40% for P2P payments and 41% for mobile wallets.
Global Cashless Payment Adoption Rates
- Globally, 85% of POS transactions were cashless in 2024.
- In the U.S., the corresponding figure was 86.9%.
- From 2018 to 2023, global cashless POS share grew at a CAGR of 2.85%.
- By 2027, forecasts project cashless POS will reach 94.1% in the U.S. and 89.0% globally.
- By 2024, 1.9 billion people worldwide had used mobile payment apps, a 17% growth over the year.
- In urban Asia‑Pacific, 85% of adults already use cashless methods.
- In Europe, 67% of transactions were cashless in 2023, expected to rise to 75% by 2025.
Regional and Country Comparisons
- Japan: cashless payments at 42.8% in 2024, up from 13.2% in 2010.
- Australia: cash share fell to 13%, down from 70% in 2007.
- Sweden: only 10% cash usage in transactions by 2025.
- Europe: cashless adoption at 67% in 2023, with a projected 75% by 2025.
- Asia‑Pacific: 85% of urban adults use cashless payments.
- Global: U.S. leads with 86.9% cashless POS, ahead of many regions.
- India (UPI system): Over 500 million active users in 2025, 19.47 billion transactions processed in July, worth ₹ 25.08 trillion (~$293 billion).
Mobile Wallet and Contactless Payment Usage
- Mobile wallets are expected to represent over 55% of global e‑commerce payments by 2025.
- Forecasts extend to 4.8 billion mobile wallet users, nearly 60% of the global population, by 2025.
- In 2024, 1.9 billion people globally had used mobile payment apps, a 17% increase year over year.
- UPI in India handles more than 7,000 transactions per second in mid‑2025.
- Europe’s new mobile wallet Wero, launched in 2024, had 14 million users and conducted 8 million transactions by November.
- Across ASEAN, an integrated QR code payment system is under development, including the Philippines among participating countries.
Common Issues with Cashless Payments
- 68% of users reported network issues as the biggest challenge in cashless transactions.
- 26% face delays in payment acknowledgements, causing frustration during purchases.
- 5% cited high rent of POS machines as a barrier for merchants.
- Only 1% mentioned other issues, showing that most concerns are concentrated on connectivity and delays.
Cash Decline and Cashless Transaction Shares
- In the U.S., 84% of payments were made digitally in 2025.
- The average American carried $67 in cash and stored $306 at home, with cash still accounting for 14% of transactions.
- Among American demographics, low‑income individuals used cash for 24% of transactions, versus 10% among higher‑income groups.
- In Sweden, only 10% of transactions were cash-based in 2025.
- Security concerns prompted authorities in Sweden and Norway to encourage keeping cash on hand for emergencies.
- In Europe, cash usage is expected to shrink by 2 percentage points annually, reaching an 11% share by 2030.
- While digital payments dominate, cash persists as a fallback.
Digital Payment Market Size and Growth
- The payments market is projected to reach $18.6 trillion by 2025.
- The digital payment market is expected to hit $132.7 billion in 2025, growing to $588.9 billion by 2033.
- The global digital payment market may reach $140.6 billion in 2025, expanding to $853.0 billion by 2034.
- Total digital payments exceeded $170 billion in 2025, projected to reach $618.5 billion by 2033.
- The market may reach $32.1 trillion by 2033, up from $10.18 trillion in 2024.
- Two-thirds of adults worldwide now use digital payments, with 89% adoption in the U.S.
- In 2023, the global digital payments value stood at $9.47 trillion, growing toward $14.79 trillion by 2027.
The Impacts of Cashless Businesses on Retailers
- 37% of impacts were reported on streets and highways, highlighting accessibility issues in transit areas.
- 20% fell under miscellaneous categories, showing diverse challenges outside traditional retail.
- 16% of impacts occurred at residences, reflecting cashless adoption in home-based transactions.
- Another 16% were linked to buildings of commerce, affecting formal retail outlets.
- 7% were tied to convenience stores, where cash is still commonly used for small purchases.
- 3% of cases occurred at gas or service stations, pointing to payment flexibility issues.
- Only 2% were reported at banks, showing minimal disruption in formal financial institutions.
Cashless Trends in Retail and Consumer Behavior
- Digital wallets already represent 49% of global ecommerce sales, while credit cards hold 21%.
- E-commerce is expected to make up 24% of global consumer spending by 2026.
- In India, cash on delivery still dominates, accounting for 75% of e‑retail activity.
- Embedded finance is growing rapidly, with 41% annual growth.
- Buy Now, Pay Later (BNPL) soared by 30% in 2023, reaching $291 billion in global transactions.
- The payments industry handled 3.4 trillion transactions valued at $1.8 quadrillion, generating $2.4 trillion in revenue in 2023.
- Projected revenue may exceed $3.1 trillion by 2028.
Financial Inclusion and Cashless Solutions for the Unbanked
- India’s UPI generated 19.47 billion transactions in July 2025, totaling ₹25.08 trillion (~$293 billion).
- UPI had 500 million active users in 2025.
- The Philippines’ GCash wallet serves 81 million users.
- In Latin America, digital payments could triple to $300 billion by 2027.
- QR and instant payment networks are bridging gaps for underserved populations.
Impact of Cashless Economy on Businesses
- Global Payments’ acquisition of Worldpay for $22.7 billion expands capacity to 94 billion transactions and $3.7 trillion in volume.
- Indonesia’s QRIS added 50.5 million users, 32.7 million merchants, and Rp 42 trillion (~$2.57 billion) in transactions.
- Embedded finance is growing at 41% annually.
- BNPL allows merchants to offer flexible terms and increase cart value.
- UPI and GCash support small enterprises and retailers in going digital.
Public Perception and Preferences Toward Cashless Payments
- In the U.S., 41% make no weekly cash purchases, but 59% still use it occasionally.
- 65.7% of respondents prefer cashless payments.
- 55% of UK consumers are unlikely to adopt new payment methods.
- 70% of Gen Z want to keep cash available.
Security and Fraud in Cashless Payments
- Digital systems must balance efficiency with resilience.
- Sweden’s authorities encourage retaining cash for emergencies.
- Real-time systems like UPI and QRIS raise expectations and risks.
- Investments in fraud detection, disaster readiness, and user trust are critical.
Government Policies and Regulatory Developments
- The OECD (2025) promotes legal safeguards for cash access.
- Sweden and Norway legally require some businesses to accept cash.
- Australia mandates cash acceptance for essentials starting in 2026.
- Japan exceeded the 40% target for cashless payments, prompting CBDC discussions.
- Sri Lanka launched GovPay, aiming to cut 1.5% of GDP spent on cash logistics.
- In the U.S., stablecoin regulation is evolving with bipartisan bills.
Technological Innovations Driving Cashless Payments
- Mastercard is developing a blockchain-based “Venmo of crypto”.
- Blockchain is transforming B2B and commercial payments.
- QRIS (Indonesia) saw a 226.5% surge in transactions in 2024.
- SoFi launched a cross-border crypto remittance service.
- Biometric payments represented 5% of digital transactions in 2023, projected to double by 2025.
- Bank apps handled 55% of digital payment volume in 2023.
- Super-apps like WeChat and Grab serve over 1 billion users.
Cryptocurrencies and Blockchain in Cashless Transactions
- 8–10% of global adults now own cryptocurrency.
- About 25% of online retailers accept crypto.
- Leading banks and fintechs are entering the stablecoin market.
Environmental Impact of Going Cashless
- In Germany, cash has 6 times the environmental impact of digital payments.
- Digital systems reduce infrastructure burdens.
- Some experts say the impact is minor at scale, similar to a Google search.
Future Outlook and Predictions for Cashless Societies
- Cashless payment volume may increase 80% from 2020 to 2025, reaching 1.9 trillion transactions.
- The digital payment market may reach $10.9 trillion by 2025, and $23.1 trillion by 2030.
- Some studies suggest that increasing digital payment adoption may contribute to GDP growth, with effects varying by country and context. Expanding digital finance could increase GDP by up to 6% in emerging economies over time.
Conclusion
The cashless economy today is powered by regulatory evolution, technological breakthroughs, and rising consumer adoption, but frictions remain. While digital wallets, blockchain, and CBDC pilots are expanding, issues like equity, trust, infrastructure, and even public safety signal that cash still plays a role. Environmental gains are promising, though moderate, but the economic upside, including GDP growth and efficiency, is substantial. As policy, tech, and user behavior continue to converge, we move closer to a predominantly digital payment world. Yet the journey remains human-centered, requiring inclusive design and safeguards for all.
