Digital payments surge, cash in circulation holds steady
Global cashless payments continue to increase, driven by credit transfers in emerging markets and card payments in advanced economies. Despite declining withdrawals, cash in circulation remains largely stable, underscoring its enduring relevance.
Digital Surge, Diverse Drivers
The use of cashless payments continued its global expansion in 2024, albeit with distinct regional drivers.
In emerging market and developing economies (EMDEs), annual cashless payments per capita surged by 21% to 242, primarily propelled by a growing adoption of credit transfers, particularly fast payments.
Conversely, advanced economies (AEs) recorded a slower 6% increase, reaching 579 payments per capita, with growth predominantly fueled by card payments.
On average, AEs saw 361 card payments per person in 2024, significantly higher than the 95 in EMDEs.
While the value of cashless payments as a percentage of GDP generally plateaued in AEs, it saw a modest 3% rise in EMDEs.
Credit transfers consistently constituted the largest share of total cashless payment value, accounting for 86% in AEs and 94% in EMDEs.
Instant Payments Gain Traction
Fast payment systems, enabling near real-time fund transfers, continued their expansion in 2024, particularly within EMDEs.
The volume of fast payments as a percentage of total cashless payments in EMDEs grew from 43% to 49%, while remaining around 10% in AEs.
Significant jurisdictional differences persist in per capita usage and average values.
Brazil recorded the highest use per capita (298), while average values were highest in Japan (USD 3,380) and lowest in India (USD 21).
System enhancements, such as Türkiye's increased transaction limits and India-Singapore's cross-border link, coincided with these developments, broadening reach and use cases and contributing to a 12% decline in average fast payment values in EMDEs.
Cash's Quiet Resilience
The report confirms the accelerating shift towards digital payments, particularly the rise of fast payment systems in emerging markets.
However, the stabilization of cash in circulation, despite declining withdrawals, highlights its persistent role, not merely as a transaction tool but as a store of value.
This suggests a nuanced payment landscape where digital innovation coexists with the enduring relevance of physical currency, challenging narratives of an imminent cashless future.