The Future of Cash in a Digital Economy

This report explores the use of cash in regions across the world, particularly as a tool for financial inclusion and during times of crisis. In an increasingly digital landscape, the report also discusses the future of cash, with several markets-having previously considered the prospect of going cashless-now looking to maintain its accessibility in order to protect consumer welfare and ensure economic resilience.

Cash usage continues to drop around the world, both as a share of total volume and total value of transactions, due to consumers switching to digital payment methods. While many governments and regulators predicted the imminent arrival of the cash-free era in the early 2020s, global events since that time have prompted these bodies to scale back the push for a fully digital payments ecosystem. Thus, cash remains a vital and valuable payment tool for large numbers of consumers across the globe, and easy access to the payment tool-as well as its acceptance-must be enforced to protect consumer welfare and ensure the resilience of the economy during times of crisis.

Report Scope

• Cash plays an important role in the economic lives of several consumer demographics, including those of lower affluence, those with low financial education, those unable to use technology, rural populations, and more. The lack of banking and payment infrastructure in developing markets means consumers continue to rely on cash in local economies, while those of lower affluence may be excluded from the system and have no alternative but to use cash as their main payment tool.
• Cash remains a highly valuable asset in times of crisis and uncertainty. Global events such as war, natural disasters, climate change, and technological outages have all affected financial infrastructure in the past and will continue to do so in the future at an increasing rate. When these digital systems fail, consumers are left in the dark, unable to pay using digital systems. As a manual, physical store of value, cash presents a compelling alternative to electronic payments in emergencies.
• Governments and regulators around the world are reining in plans to eliminate cash from the payments ecosystem, realizing the importance of the tool to many consumers.

Reasons to Buy

• Develop an in-depth understanding of historical and current trends of cash usage.
• Understand the key drivers of cash usage and its strategic value for consumers.
• Gain insight into the future of cash and how stakeholders should manage its continued usage.