“Debit or credit?” is becoming a much more popular question than “Sorry, we only take cash.” After the COVID-19 pandemic, an already ongoing trend of cashless payments accelerated significantly and is now leading us to a different future in economics. Even in the Eurozone, one of the most resistant regions to abandoning cash worldwide, digital payments and mobile finance apps are gaining traction.
The global shift toward cashless economies is evident if we look at the numbers, with significant changes observed in both Asia and Europe. In China, the number of ATMs has been declining since its peak in 2018, totaling 896K units in 2022. This decline aligns with the surge in mobile payment usage: in 2023, mobile payment transactions reached approximately 185 billion in the country, 17% more than the previous year.
India has also instituted the Unified Payments Interface (UPI) to push digital transactions, making mobile payments accessible even in rural areas. Japan and South Korea, traditionally cash-heavy societies, are also embracing digital money, though at different speeds. South Korea is on track to become one of the first truly cashless nations, with card and mobile transactions vastly outpacing cash. Japan, despite its high-tech reputation, has been slower to move.
In Europe, a similar trend can be seen. The total number of ATMs grew until 2016 but has been decreasing since. For instance, Poland had over 21,200 ATMs as of December 2022, the highest among Central, Eastern, and Southern European countries. The Eurozone has seen the use of cash in total transactions drop to 52% in 2024 from 59% in 2022 and 79% in 2016, according to the European Central Bank (ECB). At the same time, card payments have increased to 39%, and mobile payments have doubled to 6%.
Challenges and barriers
But both common and specific challenges still remain. In most Asian countries, poor internet connectivity is a problem in rural areas, and virtually every market worldwide still has cybersecurity concerns. There is also growing concern about exclusion and data usage from users.
In China, a huge population of elderly citizens has struggled to adapt, and small businesses that resist digital payments risk being left behind.
As for the question of data, users are asking valid questions: who owns it, and how is it used? In the coming years, the debate will focus on whether consumers are comfortable trading financial privacy for convenience and how they can take control over their own information—something that will not happen without stronger infrastructure and regulation.
Governments and central banks are paying close attention to these questions. Some see digital currencies as a way to keep control in an increasingly decentralized financial world. Others worry about monopolies, as big tech firms play an outsized role in digital payments, with products like Apple Pay and Google Pay acquiring relevance. Regulators in Asia and beyond are walking a fine line, trying to encourage innovation while preventing excessive corporate power.
For now, cashless economies are accelerating, with no signs of stopping. Whether through private fintech solutions, government-backed digital currencies, or a hybrid model, the future of money is undeniably digital. The real question isn’t whether we’ll get there—it’s what kind of system we’ll end up with and whether it will prioritize people’s rights or industry profits.
