Cashless payments are the future. Some experts even believe that cashless societies may exist as soon as 2022. We have compiled a list of countries which are considered as most cashless in the world. There are some factors which are important to be considered while evaluating the amount of cashless economy of the country.
A cashless country means that a majority of the people in the country are aware of the mobile payments options available at their disposal to use, the amount of credit cards and debit cards per person, the cards in issue with contact less functionality. It obviously takes into consideration the payment transactions made using non cash methods and the growth of cashless payments over the past 5 years.
Worlds’ Most Cashless Countries!
Canada is the world’s most cashless country. This can be ascertained from the fact that the average number of credit cards for every Canadian is 2. Majority of the payments in Canada are made using cashless methods like credit cards and debit cards. Almost 57% of the payments are made using non cash methods.
Sweden is the most cashless country of Europe. In Sweden, more than 59% of all the Swedish consumer transactions are done through non cash methods. It is the highest of the top 10 cashless countries of the world. 85% of the people in Sweden have access to online banking. In Sweden, the total value of the transactions consisting of cash is only 2%.
3. United Kingdom
The people of the United Kingdom, just like any other developed country, are very well aware of the alternative methods of payment available to them. In UK, around 47% know what smart phone payments options are and that they can use them. Around 41% of the cards have contact less functionality. The average number of debit cards per British consumer is 1.48. A little more than half of the consumer transactions are done using cashless methods in the United Kingdom.
France is another developed nation which is in the lead in the race to become a cashless society. In France, 39% of the cars already have the contact less technology. Though the per capita credit cards and debit cards in France is less than expected, the proportion of the consumer transactions using non cash methods is nearly as much as 59%.
5. The United States Of America
The American way of life has always been associated with plastic cards. The per capita credit cards in the United States equal 2.9. It is the highest of the countries in the list of top 10 cashless countries. Not only is this, in terms of cashless payments, the per capita debit cards in the Unites States is 0.94.
China has registered a growth of 100% in the last 5 years in terms of cashless payments. It has the second highest debit cards per capita number in the list of top 10 cashless countries, next to only the other Asian giant Japan, at 3.28. The country is, however, let down by a lack of usage of credit cards. Also, cash is prevalent at many consumer transactions considering that only 10% of all the transactions are made through cashless methods.
Australians are firm fans of the cashless society. They prefer to use debit cards as their primary payment method. Australians have an average of 1.75 debit cards and an average of 1 credit card per person, which is one of the highest in the world.
When talking about future and economy, how can we leave Germany behind! Germany is number 8 on this list primarily because the Germans do not prefer using credit cards. They have high per capita debit card number at 1.25. Almost a third of all the consumer transactions in Germany are completed using cashless methods. Not only this, most of the cashless payments are made trough contact less and mobile devices.
Japan can be considered a little new to this craze of contact less. Japan has the highest debit cards per person at 3.3. Almost 26% of the cards in issue in Japan have contact less functionality.
No list of countries with achievements is ever complete without Russia! Russia is not as advanced as other countries in this list but they surely are prepared and better poised than others to lead the cashless world. More than 57% of the Russians are very aware of the mobile payment methods available to them.
History And Future Of Going Cashless
In the past, the closest the society was to being cashless was during the time of the barter system. In modern times, a cashless society is one where the legal tender is exchanged and recorded in digital electronic format. This way, the payments are faster and more secure too.
In the 1990s, electronic banking became popular in the technologically advanced countries like the US, the UK, Russia, Nowadays, the online digital payments and digital wallets have made cashless transactions available to the general public too.
Consumers nowadays want convenience, which the cashless modes of payment give them. Making payment through apps in their mobile phones is far more convenient than holding and carrying around cash with themselves.
While we have talked about the past and the current state of the cashless society, we must also be aware of the state of the cashless society in the future. Currently, all the countries are cashless partially, but there is one country which is set to be completely cashless, and that country is Sweden. The physical cash is being phased out at a rapid rate. The decline in transactions made through cash could drop to as low as half a percent by 2020 from the already low of 2%.