The Global Journey from Cash to CashlessHugh Thomas |
Even though much of the world’s population has access to many different options for making payments, cash still persists. Today, around 85 percent of all retail payment transactions are done with cash, which translates into to 60 percent of retail transaction value. As a way of making payment, cash takes time to get at, is riskier to carry; and by some estimates cash costs society as much as 1.5 percent of GDP. Electronic payments on the other hand boost economic growth, while advancing financial inclusion. It is for these reasons that countries around the world are working to make their payment systems less dependent on cash.
MasterCard Advisors developed The Cashless Journey study to track progress towards more cashless economies in 33 countries, both developed and developing economies, from five regions, in total representing more than 85 percent of global GDP.
The study found that many markets have made real progress on their journeys by establishing some basic infrastructure over long periods of time. Affordable and broadly available financial products, a vibrant and competitive merchant market place, a transparent and productive business environment—all of these basics are strongly correlated with success in the cashless journey. Australia has followed this path and is now nearly cashless. Brazil, less far along in its journey, is another country putting the basics in place and reaping the benefits.
To find out more and read the full paper, visit the Cashless Journey homepage.