A cashless society is one in which people conduct most transactions without physical currency, using digital payment methods such as cards, digital wallets, and bank transfers. In a fully cashless system, businesses no longer accept paper money or coins for everyday purchases.

Contactless payments such as tap to pay cards and digital wallets have gained popularity since the COVID-19 pandemic. In addition, mobile payment platforms such as Apple Pay and Google Pay have become more widespread, making it easy to pay without cash or cards.

And the numbers tell a striking story: in 2025, the global payments industry generated $2.5 trillion in revenue through 3.6 trillion transactions worldwide.

This shift isn’t uniform, though. In many parts of the world, cash is still the top choice. However, the direction of the shift is clear: more people and governments are moving away from cash, driven by convenience, speed, and the improving capabilities of digital technology.

Below, we’ll discuss what businesses should be aware of when considering whether cash should remain part of their payment strategy.

What’s in this article?

• What is a cashless society?
  
• How do you measure whether a country is becoming cashless?
  
• Progress of cashless initiatives in key countries
  
• Governmental policy and legal considerations around digital payments
  
• Implications for customers and businesses in a cashless world
  
• Benefits of going cashless vs. using cash
  
• How Stripe Payments can help
  

What is a cashless society?

A cashless society is a concept in which money changes hands through digital means rather than physical banknotes or coins. In practice, this would look like customers going about their day—buying coffee, paying bills, shopping for groceries—without ever touching a bill or coin. This idea is not new, but its adoption has risen, driven by the introduction of technologies such as credit cards, online transfers, and mobile wallets.

In a cashless society, all payments are processed through digital networks. Banks keep an electronic record of transactions, and people access their funds through electronic systems. The advantages to cashless societies might include reduced physical crime (since there’s no tangible money to steal), lower transaction costs, and the convenience of not needing to carry cash.

However, cashless societies have challenges, too. Not everyone has equal access to the internet or other technologies necessary to participate fully in this type of economy. Privacy is also a concern, since nefarious actors can track and record digital transactions. Transitioning to this type of system requires careful planning and widespread adoption of accessible and secure infrastructure.

Countries are at different stages of moving toward this concept. Some countries have taken significant steps—with businesses and customers readily adopting digital payment methods—while others still heavily rely on cash. The trend toward digital transactions is influenced by technological advances, governmental policies, and customer behavior.

How do you measure whether a country is becoming cashless?

The most direct measure is the share of transactions conducted without cash—whether by card, mobile payment, or bank transfer—which can be tracked through central bank payment data or consumer surveys. For example, in Sweden, around 90% of transactions are now cashless, and as of 2025, an estimated 98% of South Koreans use digital wallets in some form.

In addition, economists often monitor cash in circulation as a percentage of gross domestic product (GDP). Another useful measure is the density and usage of ATM networks. On the merchant and infrastructure side, cash acceptance rates among retailers, transit systems, or public services are notable indicators.

Progress of cashless initiatives in key countries

Some countries (and smaller jurisdictions within those countries) are moving away from cash much faster than others. In some places, cash is still widely used; in others, it’s rarely used and then only in isolated circumstances. Here’s a look at the position of cash for a few of the most developed countries:

United States: Gradual adoption

The US is moving toward cashless payments, with a substantial increase in the use of mobile wallet apps and contactless cards. Cash accounted for just 14% of all US consumer payments in 2024. This is driven by convenience and the extensive network of businesses that accept electronic payments. Challenges in the US include addressing the needs of those without bank accounts and managing concerns about digital security.

United Kingdom: Contactless acceleration

In the UK, contactless technology is propelling the transition away from cash, particularly in cities and on public transport. The government and financial sector’s support of digital payment technologies has also encouraged customers and businesses to adopt these methods. In 2024, nearly 40% of payments made in the UK were contactless. After the COVID-19 pandemic began, people became even more inclined to use contactless payments, accelerating the country’s move away from cash.

Japan: Preference for cash

Japan’s relationship with cash is characterized by its advanced technological capabilities and a cultural preference for cash. In 2024, 42.8% of payments in Japan were cashless. Efforts to promote cashless payments have intensified, and these include government initiatives to increase acceptance of electronic payments—especially in areas that experience a high volume of international tourism. These measures include subsidies for businesses that install cashless payment systems and tax incentives for customers.

Germany: Cautious acceptance

Germany’s cautious acceptance of cashless payments is due to the population’s preference for privacy and control over personal financial data. But customer habits appear to be changing: between 2019 and 2024, the number of annual debit card transactions in Germany increased from 3.9 billion to 10.9 billion. There’s a gradual shift away from cash, especially among younger demographics, who are more open to digital transactions.

Each of these countries is moving toward cashless societies at its own pace, influenced by distinct cultural attitudes, government policies, levels of technological adoption, and readiness of financial systems to support such changes.

Governmental policy and legal considerations around digital payments

Governments around the globe are creating a variety of policies and initiatives to promote digital payments. These efforts include creating digital transaction infrastructure (such as payment systems and high-speed internet access) and educating the public about the benefits and security of going cashless. Some governments incentivize businesses to accept digital payments by offering subsidies or tax rebates to upgrade their payment systems.

But policymakers face challenges in this shift to digital payments. They need to ensure that the transition to a cashless economy does not exclude certain groups, especially those without access to technology or banking services. Policymakers must also address security and privacy concerns about data protection and digital fraud.

Governments are aiming to promote cashless policies while also acting as guardians of fair and accessible financial systems for all citizens. This requires ongoing discussion and careful consideration of socioeconomic factors.

Do businesses have to accept cash?

In some countries and regions, cash acceptance is a regulatory and consumer rights topic. Rules regarding cash acceptance vary by jurisdiction, so assess the laws where your business operates before making a decision on accepting cash.

In the United States

The US government has taken a multifaceted approach to regulating and encouraging the use of digital assets. Former President Joe Biden's Executive Order on Ensuring Responsible Development of Digital Assets discusses a potential US Central Bank Digital Currency (CBDC) and how such a currency could improve payment systems and promote financial inclusion.

The federal government has also focused on improving access to financial services, advocating for instant payment systems such as FedNow. It has also worked to improve the efficiency of cross-border payments and to ensure digital assets serve all Americans equitably​​. On an international scale, the US has used its influence in global organizations to help other countries develop digital asset infrastructures that respect data privacy and financial stability.

Implications for customers and businesses in a cashless world

As cashless adoption accelerates, businesses can benefit from treating payment infrastructure as a strategic asset. That means investing in redundant, scalable systems capable of handling diverse payment methods as they emerge.

Customer segmentation is also important. Businesses should map their customer demographics against cashless readiness and customize onboarding support accordingly. Fee structures deserve rigorous modeling. Businesses should test their pricing against a range of processing-fee scenarios and evaluate whether renegotiating processor contracts or absorbing costs into pricing adjustments makes more sense for their model.

Another priority is operational resilience, which is often overlooked until a system fails. A cashless operation with no fallback plan is vulnerable to outages, so contingency protocols are important. Finally, businesses that monitor the regulatory changes around digital payments will have more room to shape their transition on their own terms.

Benefits of going cashless vs. using cash

While a cashless society could have many perks, there are also still benefits to accepting cash when needed. Here’s how each option stacks up.

The future of payments will likely involve maintaining the integrity of cash as a payment option while also expanding and improving digital payment solutions. Individuals will be able to choose how they transact based on their personal circumstances and preferences. And businesses, policymakers, and financial institutions must provide robust digital payment systems alongside a strong infrastructure for cash, in order to build an inclusive financial system that serves the needs of all participants.

Why some policymakers still protect cash access

Many policymakers are committed to preserving access to physical currency as a safeguard against macroeconomic instability. In the event of technology failures, cyberattacks, or system outages, a fully cashless society could leave people temporarily unable to access funds.

More broadly, some economists and regulators point to bail-in scenarios—where failing banks might be permitted to use depositor funds to stabilize themselves—as a reason for individuals to retain access to physical currency outside the banking system. Similarly, in environments where central banks impose negative interest rates, cash serves as a hedge against the erosion of digital savings.

How Stripe Payments can help

Stripe Payments provides a unified, global payments solution that helps any business—from scaling startups to global enterprises—accept payments online, in person, and around the world.

Stripe Payments can help you:

• Optimize your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment UIs, access to 125+ payment methods, and Link, a wallet built by Stripe.
  
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• Unify payments in person and online: Build a unified commerce experience across online and in-person channels to personalize interactions, reward loyalty, and grow revenue.
  
• Improve payments performance: Increase revenue with a range of customizable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorization rates.
  
• Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% historical uptime and industry-leading reliability.
  

Learn more about how Stripe Payments can power your online and in-person payments, or get started today.