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Measuring progress
toward a cashless society
Author: Hugh Thomas
Contributors: Amit Jain, Michael Angus
Problem
Even though the worlds population
has access to multiple payment
options, cash still accounts for
85% of all consumer transactions
throughout the world.
Solution
MasterCard Advisors created a
global study that showcases cash
usage and the conditions that lead
toward cashlessness.
Cash accounts
for about 85% of
global consumer
transactions
compendium.mastercard.com
An important distinction
MasterCard Advisors
Cashless Journey study
looks at all consumer
payments, including those
that happen beyond retail
point of sale. This is an
important consideration
to underscore, as by
including non-retail payment
categories, like housing
and bill payment, the total
number of transactions
becomes larger, while cash
share becomes smaller.
As in nearly all developed
countries, the vast majority
of non-retail payments are
done by cashless methods.
So, while cash typically
accounts for the majority
of retail payments in shops,
when these other consumer
payments (e.g. wire transfers
to buy a car, direct debits to
pay mortgage) are included,
cash share of total volume of
payments is reduced.
Figure 1: Estimated Percentage of Consumer Payment Transactions Done Using Non-Cash Methods*
0
20
40
60
Singapore
The persistence
of cash is
surprising given
its inconveniences
and risks
80
100
61
Netherlands
60
France
59
Sweden
59
0
United Arab Emirates
Taiwan
Italy
South Africa
Poland
5
4
Canada
57
Russia
Belgium
56
Mexico
United Kingdom
52
USA
40
60
80
100
Greece
Colombia
45
Australia
35
Germany
33
Korea
29
Spain
16
Brazil
15
Japan
14
China
20
10
Advanced
Tipping Point
India
Kenya
Thailand
Malaysia
Saudi Arabia
Peru
Egypt
Indonesia
Nigeria
Transitioning
Inception
Source: MasterCard Advisors analysis, 2013 | BIS CPSS, 2011 | McKinsey Global Payments Map, 2008 | World Bank, 2011
*Non-cash methods include checks and electronic payments (e.g. cards, ACH)
compendium.mastercard.com
Figure 2
20
40
60
80
100
39
Singapore
60
12
Italy
13
53
Belgium
22
Russia
19
Mexico
10
13
Greece
15
United Kingdom
55
Poland
16
Canada
16
Colombia
USA
12
11
India
Australia
10
Germany
10
51
Kenya
19
Thailand
Malaysia
21
Korea
Spain
10
30
Saudi Arabia
13
31
Peru
Brazil
Japan
100
16
South Africa
Sweden
80
65
Taiwan
14
France
40
United ArabEmirates
20
Netherlands
20
30
19
Egypt
12
23
Indonesia
100
China
Advanced
Nigeria
Tipping Point
12
Transitioning
Inception
Source: MasterCard Advisors analysis, 2013 | BIS CPSS, 2011 | McKinsey Global Payments Map, 2008 | World Bank, 2011
*Non-cash methods include checks and electronic payments (e.g. cards, ACH)
Figure 3
Pre-requisites for
Going Cashless
Access to
financial services
Measures of the
availability and
affordability of
financial services
and whether people
use bank accounts
and electronic
payment products.
Macro-economic
and cultural factors
Measures the factors
impacting preference
for cash, such as ease of
doing business and size
of informal economy.
Merchant scale
and competition
Measures indicating
the potential for
uptake of new
payment solutions
by large scale
merchants. Measures
the intensity of local
competition.
Technology and
infrastructure
Measures of access
to and uptake of
new technology as
well as innovation.
Also measures
the quality of
infrastructure.
compendium.mastercard.com
Figure 4
Readiness Scores
Indicating Presence
of Macro-Economic
Pre-requisites for
Going Cashless
Figure 4: Readiness Scores Indicating Presence of Macro-Economic Pre-requisites for Going Cashless
20
40
60
80
Singapore
100
20
40
60
80
Netherlands
88
72
48
74
South Africa
Sweden
89
Canada
91
Belgium
84
United Kingdom
88
54
Poland
52
Russia
27
Mexico
35
Greece
41
Colombia
USA
100
69
Taiwan
Italy
France
80
33
82
Australia
87
Germany
83
Korea
29
Kenya
30
Thailand
48
Malaysia
69
Spain
India
56
Saudi Arabia
69
57
Peru
Brazil
43
Japan
Egypt
75
China
Nigeria
43
Advanced
Indonesia
Tipping Point
Transitioning
33
19
24
21
Inception
Source: MasterCard Advisors analysis, 2013 | BIS CPSS, 2011 | McKinsey Global Payments Map, 2008 | World Bank, 2011
compendium.mastercard.com
Government focus
and technological
innovation can
create shortcuts to
going cashless
compendium.mastercard.com