Cash Will Only Be Used for 10% of Transactions by 2025, Digital Wallet Usage on the Rise

Cash has been undergoing a steady but certain decline, and the pandemic kicked this into high gear by making the transferring of cash from one person to another a distinctly dangerous endeavor because of the fact that this is the sort of thing that could potentially end up exposing them to the dangerous virus. Cash usage decreased by a massive 32.1% in 2020, and while its 2021 decrease was only 12.2%, the fact that it continued despite the receding pandemic is quite telling.

According to a new report that has been put out by EMarketer, cash will only be used in around 10% of global transactions by 2025. It’s currently used in around 18% of transactions around the world. With all of that having been said and now out of the way, it is important to note that digital wallets are quickly picking up steam and replacing cash in several contexts, with their expected share of transactions by 2025 projected to be around 39%.

Credit cards are still an ever present aspect of transactions on a global scale, but in spite of the fact that this is the case cash has still retained some popularity. It’s still used in almost one out of every five transactions, but digital wallets allow a level of transactional ease that only cash can provide without requiring people to carry physical cash or wallets with all things having been considered and taken into account.

The biggest drop in cash usage will be seen in the regions of the Middle East and Africa. Cash is used in 44% of transactions there due to a lack of adequate digital mobile wallet options, but the proportion of transactions that use cash is going to decrease to 31% if current trends are followed. The regions of North America and Asia Pacific are going to go almost entirely cashless by 2025, with expected proportions of cash usage being 8% and 6% respectively in these areas. Interestingly, Europe uses more cash than either of these regions, although their cash usage is also going to decrease to 17% by 2025.

Read next: Global Automotive Industry Woes Continue Despite Favorable 2022 Predictions
Previous Post Next Post