While no country is fully cashless to date, populations in Norway, Denmark, Finland, Sweden, South Korea, and China use the least amount of physical cash in their payment transactions. Mobile payments and other digital payment solutions have gained considerable popularity as the main way consumers pay for goods and services.
Their transition to digital-first payment methods was gradual and continues to evolve. These countries in Northern Europe and East Asia serve as practical examples for the U.S. and other countries considering adopting a digital-first payment landscape.
Leading Countries in Low Cash Usage
Sweden and Norway
Consumers in Sweden and Norway are no strangers to digital payment methods (or the cold weather)! Most consumers use digital payment methods for everyday purchases, including access to debit and credit cards, national payment apps, and mobile payment solutions.
Cash remains in circulation, though its usage is minimal. Both governments have implemented laws requiring cash acceptance for vulnerable populations and for emergency use.
Denmark and Finland
Denmark and Finland are tech-forward countries making significant strides in transitioning to digital-first payment societies. Their strong banking infrastructures and sky-high digital payment card adoption rates have drastically reduced their cash acceptance rates, especially in the retail and transit industries. Both governments prioritize financial inclusion, requiring brick-and-mortar businesses to accept physical cash during specific hours.
South Korea
Digital payment methods dominate the payment landscape across South Korea. Consumers are using mobile payments and other contactless payment technologies to maintain a convenient and secure payment experience nationwide.
Physical cash has gone by the wayside because of the speed and convenience of digital payment methods. While public transportation, such as buses, is almost completely cashless, many markets and independent shop owners still prefer cash.
China
WeChat Pay, Alipay, and other mobile payment platforms have played a significant role in making China’s payment landscape digital-first. Consumers can quickly and easily make payments via QR codes, without waiting in long lines, encouraging more frequent spending.
Of course, cash still exists and is often used by populations with limited-to-no access to payment technologies, as well as for small purchase transactions. Digital payment methods dominate in major cities, however, and across retail establishments.
Denmark, China, and other digital-payment-first countries are lighting the way as trailblazers for how other countries can become digital-first without eliminating cash or excluding cash-only consumers.
The transition to a cashless-first business is gradual and requires planning and flexibility. Ready Credit’s inclusive digital payment solutions ease that transformation, helping businesses meet consumer demand for convenient payments without leaving a single cash-paying customer behind.