Finland money

Norway, Finland and New Zealand top list of countries closest to going cashless • NFCW

CASH REFUSAL: The proportion of cash payments is now below 5% in the 10 countries closest to becoming cashless

Norway, Finland and New Zealand are the three countries closest to becoming cashless, followed by Hong Kong, Sweden, Denmark, Switzerland, the United Kingdom, Singapore and the United States. -Bas, according to a study published by Merchant Machine.

The research identifies the growing popularity of digital wallets as “likely helping to reduce cash usage” and shows that Alipay is currently the most popular digital wallet in the world with 1.3 billion users, followed by WeChat Pay ( 900 million), Apple Pay (507 million), Google Pay (421 million), PayPal (377 million), Paytm (333 million), PhonePe (300 million), Samsung Pay (140 million), Venmo (52 million) and Cash App (36 million).

Close to cashless

In the 10 countries listed as being closest to becoming cashless, the proportion of cash payments is now below 5%, with Sweden, Denmark, the UK and Singapore having the lowest proportion (1%) , followed by Norway, Finland, New Zealand and New Zealand. Zealand and Switzerland (2%) and Hong Kong and the Netherlands (4%).

The research, however, lists the countries according to an overall “cash-dependent index score” which also takes into account the percentages of people with internet access, people with a credit card, people who remain unbanked and the number of ATMs per 100,000 adults.

Based on this combination of factors, Norway has the lowest cash dependence index score (1.54), followed by Finland (1.87), New Zealand (2.06 ), Hong Kong and Sweden (2.10), Denmark (2.15), Switzerland (2.21), the United Kingdom (2.22), Singapore (2.32) and the Netherlands (2.46).

By contrast, the figures show that Morocco – where 74% of all payments stay in cash and 71% of the population is unbanked – is the most cash-dependent country with an overall score of 6.96, followed Egypt (6.71), Kenya (6.56), Nigeria (6.54), Philippines (6.42), Bulgaria (6.38), Peru (6.04), Vietnam (6.03), Indonesia (5.88) and Kazakhstan (5.59).

In Europe, the countries with the highest index score after Bulgaria are Romania (6.51), Greece (6.42), Ukraine (6.26), Portugal (5.80) , the Czech Republic (5.51), Hungary (5.16), Slovakia (4.85). ), Poland (4.75) and Italy (4.74).

“Bulgaria is the most cash-dependent country in Europe, making 74% of all cash payments and offering 91 ATMs per 100,000 adults, despite over 70% of the population having a bank account,” say the researchers.

“Despite this high use of cash, only 28% of the Bulgarian population is unbanked, which means that a good number of account holders still have to use cash to make at least some of their payments.”

Focus on UK

The research also focuses on the UK and shows that card payments account for more than half of all transactions (51%), followed by those made with a digital wallet (32%), with the rest made in cash (1%), by bank transfer (7%) and “other”, including buy now, pay later (BNPL) (9%).

“BNPL currently accounts for 6.8% of the UK e-commerce payments market share and is expected to grow to almost 10% by 2025,” the researchers say.

“Sweden, Germany and Norway are the leading countries when it comes to BNPL, which accounts for more than 20% of the e-commerce payments market share in the three countries.”

“The decline in cash transactions in the UK has been accompanied by a decrease in the number of ATMs available for cash withdrawals, and increasingly closed,” the researchers add.

“Unsurprisingly, 2020 saw the biggest drop in total cash withdrawals in the UK at -39.5%, with a further drop of -5.7% in 2021.

“In light of the continued decline in cash payments and the number of ATMs in the UK, it appears that 2022 is likely to see a further decline in cash withdrawals.”

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