A cashless society is one where financial transactions are carried out entirely through digital means without the use of physical cash.
In 2024 alone, global non-cash transaction volumes are estimated to have reached nearly 1,685 billion, with projections suggesting they’ll hit 3,540 billion by 2029, signalling a major shift in how people pay.
In this article, we’ll explore what a cashless society is, how it is evolving in the UK and Europe and what it means for consumers and businesses.
What is a cashless society?
A cashless society is a country or region that no longer accepts cash but instead relies on credit and debit cards and alternative payment methods (APM’s). While fully cashless societies are extremely rare, many countries are rapidly reducing their reliance on cash.
Based on consumer preference, shopping at a cashless store can either improve or impair the user experience. Some consumers may value the personal interaction that comes with handling cash and feel excluded when it is not an option, particularly if they do not have access to a bank account, a card or a digital payment method. On the other hand, Millennials and Gen Z expect to pay with a quick tap of their card, phone or wearable device and may be frustrated if their preferred method is unavailable.
However, the divide is not always generational and economic inequality is a large factor, with those who are unbanked not being able to partake in a cashless society. Although the move towards a cashless society is often a signal of progress, indicating a high standard of technology and related infrastructure, it isn’t always an inclusive process. Below, we will look at the countries involved in the race to become cashless.
Is the UK a cashless society?
The UK is moving rapidly towards a cash-light society, with digital and contactless payments becoming the norm in everyday transactions. While cash has not disappeared entirely in the UK, its use is declining sharply, particularly for higher value and online payments. Since 2015, 6,300 bank and building society branches have closed, reflecting a structural shift towards a more digital and less cash-reliant economy.
In 2024, cash was used in just 9% of all payments in the UK, down from 12% in 2023 and far lower than in previous years. Projections suggest that by 2033, cash might account for only 6% of payments in the UK.
Looking at eCommerce and in-store purchases, cash on delivery for eCommerce purchases has nearly vanished, accounting for only 1% of total online shopping in the UK. However, for in-store payments, cash still holds around 10%, a reminder that physical currency retains a role in certain contexts.
Contactless payments take the lead
Contactless is now the norm for in-store card payments. In 2024, 94.6% of all eligible in-store card transactions were made using contactless methods. That same year, there were 18.9 billion contactless transactions in the UK, an increase of 3.4% over 2023. The average contactless transaction was for about GBP 15.86, up slightly from GBP 15.59 the year before. Almost all UK-issued cards are now contactless-enabled. As of 2024, there were over 150 million contactless cards in issue, representing about 93% of all debit and credit cards in the UK.
Cash still matters in certain UK regions
Despite this trend, cash remains important for many. Research from Finder in 2025 reports that 13% of UK adults use cash every day and 61% use it at least once a week. Only 9% of people say they never use cash. People often use cash for occasions when merchants prefer it or to help with budgeting.
Regional disparities in cash usage are evident. Cash is used most frequently in convenience stores and supermarkets, but the areas with the highest dependence on cash are in Northern Ireland and rural parts of the North of England and the West Midlands. Northern Ireland is the ‘cash heaviest’ part of the UK, with the average adult still withdrawing GBP 2,274 in 2024, compared to the national average of GBP 1,424.
There are signs of both momentum and caution. On the momentum side, consumers are adopting digital and contactless methods rapidly and merchants are adapting accordingly.
In summary, while the UK is not completely cashless, it is already largely cash-light. The trend is strong, contactless and digital payments are dominant and cash is increasingly the exception rather than the default in many everyday transactions.
What is the state in Europe?
Europe is moving steadily towards a more digital and hybrid payments landscape, but it is not yet a cashless continent. According to the ECB’s 2024 SPACE survey, cash was still used in around half of all point of sale transactions by number, although card payments accounted for the largest share of value. This illustrates a clear shift: when consumers reach for their wallets for higher value purchases, they increasingly choose digital methods, while cash remains most common for smaller everyday spends. Online payments have surged to account for more than a fifth of transactions overall, showing how eCommerce is accelerating the move away from physical money.
The picture across Europe is highly diverse. In countries like Slovenia, Malta and Italy, more than 60% of in-store transactions are still made with cash. By contrast, in the Netherlands and Finland, the share has fallen below 30%, making them some of the most cash-light economies in Europe.
Nordic countries lead in digital adoption
The Nordic countries continue to lead Europe’s digital payments transformation. Sweden, Norway, Denmark and Finland have some of the highest adoption rates of digital payments globally. In Sweden, 51% of consumers use mobile phones for in-store payments when the option is available, having one of the highest digital wallet adoption rates in Europe. Furthermore, Denmark also exhibits high digital payment adoption, with nearly 90% of payments in physical stores conducted digitally. Similar to its Nordic neighbours, the Bank of Finland has predicted that Finland will be entirely cashless by the end of 2029, with 97% of Finnish people owning debit cards.
Yet even in Sweden, the narrative of total cash disappearance has been tempered. Once projected to become fully cashless, the country has reversed parts of that trajectory amid concerns about resilience and inclusion. In fact, the Swedish Central Bank encourages citizens to retain and occasionally use cash to stay prepared for emergencies.
Cash for resilience and inclusion
Despite these differences, consumer sentiment is clear: the majority of Europeans still value having the option to pay in cash, with more than 60% saying it is important that merchants continue to accept it. According to the ECB’s survey, cash was the most frequently used payment method for small-value payments at the POS in 2024. For payments over EUR 50, cards were the most frequently used payment method.
Digital payments gain momentum
At the same time, digital payments are gathering powerful momentum. In Europe, credit and debit cards now account for more than half of all non-cash transactions (66%), with contactless payments becoming the standard. Digital wallets and instant payments are also expanding, creating new expectations for speed and convenience at checkout. This is shown in statistics, where in 2024, 33% of eCommerce transactions and 14% of POS transactions were completed by digital wallets. This is projected to grow to 46% for eCommerce and 27% for POS transactions by 2030.
The state of payments in Europe is defined by a clear duality. While digital methods are increasingly preferred for higher value and online transactions, cash continues to play a significant role, particularly for small-value, everyday payments and in certain regions. This mix reflects both technological adoption and deep-rooted consumer habits, making Europe a hybrid payments environment rather than a fully cashless one.
As a business, what does this mean for me?
For businesses, the shift toward a cashless society is reshaping how payments are accepted, processed and reconciled. On one hand, it offers opportunities to streamline operations, improve customer experience and unlock new data-driven insights.
Digital payments make transactions simpler and more convenient for both in-store and eCommerce purchases. In physical stores, contactless cards, mobile wallets and other digital methods allow customers to pay quickly and securely without the need for cash handling. Online, digital payment options streamline the checkout process, enabling faster payments, reducing errors and lowering cart abandonment rates, which helps merchants convert more sales.
Adopting digital payments can also open the door to new business models and value added services. Subscription billing, recurring payments and Buy Now Pay Later solutions become much easier to offer when a robust digital infrastructure is in place. These features can drive higher conversion rates, encourage repeat purchases and give merchants a competitive edge.
Another crucial consideration is customer inclusion. Not all customers are ready or able to go fully digital. Older shoppers, people in rural areas or those without access to banking may still prefer cash. Completely refusing cash risks alienating part of every merchant’s customer base and might damage brand perception.
The most resilient approach for merchants is to make informed decisions based on a clear understanding of their customer base, payment preferences and transaction trends. Where suitable, a hybrid payment strategy can be adopted for payments, offering customers the options they value most. At the same time, businesses can align with evolving trends and focus on the payment methods that serve their most profitable customers by partnering with a reliable payment service provider. The hybrid approach allows merchants to manage their payment processes, compliance and security risks while enjoying the benefits of digital payments without losing the flexibility and inclusiveness that cash still provides.
The benefits of a cashless society
A well-designed cashless ecosystem can deliver significant advantages for consumers, merchants and governments alike.
Speed and convenience
One of the most visible benefits is speed and convenience. Digital transactions, whether via contactless cards, mobile wallets or instant bank transfers, are completed in seconds. This reduces queues, improves the customer experience and allows merchants to process more transactions in less time.
Less complexity
Handling, transporting and storing physical cash can be expensive. By moving to digital payments, businesses cut costs associated with cash collection, counting, security and insurance. Governments may also benefit from lower costs of minting and distributing notes and coins.
Payment transparency
Cashless payments can also help curb fraud and theft. Because digital transactions leave an electronic trail, it becomes harder for criminals to move money undetected. This transparency also helps tax authorities reduce the size of the shadow economy. According to the IMF, countries with high rates of electronic payments see lower rates of unreported income compared to cash-heavy economies. However, they are not immune to fraud. Risks such as phishing, card not present fraud and cyberattacks remain, meaning merchants and consumers must implement strong security measures.
Enhanced consumer options
Digital payment systems give consumers greater flexibility and control over how they pay. Mobile wallets let shoppers pay quickly using their phones or smartwatches, eliminating the need to carry cash or cards. Subscription services enable recurring payments that are automatically processed, making it easier for consumers to manage regular expenses. Instalment options, such as Buy Now Pay Later solutions, allow customers to spread the cost of larger purchases over several weeks or months. Bank transfers and instant payment options provide an alternative for those who prefer to pay directly from their accounts.
Together, these tools give consumers more choice, convenience and control over their finances while supporting diverse shopping habits both in-store and online.
The disadvantages of a cashless society
While the transition to a cashless society offers numerous benefits, it's crucial to acknowledge the challenges and potential drawbacks that accompany this shift
.Financial exclusion
A significant concern is the exclusion of individuals who lack access to digital payment methods. This could include the elderly, low income individuals and those without bank accounts. For instance, a substantial portion of the population in developing countries remains unbanked, making it difficult for them to participate in a cashless economy. Even in developed nations, some people still rely on cash for daily transactions and moving entirely to digital payments could exclude these groups.
Fraud risks
Digital payments are susceptible to fraud, including phishing, card not present fraud and identity theft. Cash, while physically secure, can also be stolen or lost. Both payment methods carry risks, but consumers can take steps to protect themselves, such as monitoring accounts regularly, using strong passwords, staying alert to scams and educate themselves about online and financial security. With awareness and responsible financial habits, digital payments can be managed safely.
Dependence on technology
A cashless society relies heavily on digital systems, which can be challenging for some consumers, particularly older people who may be less familiar with mobile payments or online banking. These individuals often need guidance and support to manage their finances securely, set up digital wallets or complete transactions, highlighting the importance of inclusive education and assistance alongside technological adoption.
Wrapping up
The shift towards a cashless society is undeniable, with digital and contactless payments becoming the norm across the UK and much of Europe. For consumers, this transition brings speed, convenience, flexibility and greater access to financial services. For merchants, it offers opportunities to streamline operations, reduce costs and explore innovative business models. Governments also benefit from increased transparency, reduced fraud and improved economic monitoring.
Ultimately, embracing cashless payments does not mean abandoning cash entirely. The most successful societies and businesses will combine the speed and efficiency of digital payments with the choice and security that cash provides, creating a flexible, inclusive and future ready payments ecosystem.
At emerchantpay, we offer a number of payment solutions that enable merchants to go cashless. Get in touch with a member of the team today to find out how we can help you accept a range of payment methods.