Countries Where Cash Is Still King In An Increasingly Cashless World

The 2020 pandemic skyrocketed the digital payments space, bringing many countries much closer to a cashless society than ever before anticipated. In the years since, many parts of the world continue to expand towards digital-led banking solutions with cash becoming evermore obsolete.

With sending and receiving money between individuals, borders, and accounts becoming more digitised, there poses the risk of cash-dependent societies being left behind. Here, our money experts have compared a number of ranking factors, including the unbanked population per country, number of ATMs, internet access, and digital payment engagement to find out which countries are still more dependent on cash in 2024.

We see thousands of customers sending money across borders on a daily basis, and a large portion of those transactions are remittance payments. As money transfers and banking in general steadily move towards a digital-first approach, there is the risk that the most cash-dependent countries will be isolated and left behind.

Our analysis shows a correlation between those countries most reliant on remittances and unbanked adult populations. The study highlights the necessity of addressing the significant challenges to ensure these nations have the essential infrastructure, without necessarily advocating for an entirely cashless world

Luke Eales, MoneyTransfers.com

Cash-Dependent Countries & Remittances

We found several common themes between the countries that receive the most remittances each year and those that are still largely dependent on cash transactions over digital currencies.

Five countries in the top 10 most in receipt of remittances also have an unbanked adult population of over 50% - while Bangladesh sits at 47%. The same five countries also have a notably lower number of ATMs per 100,000 adults.

Two exceptions in this correlation are China and Mexico, which are in the top 10 countries receiving remittances but also demonstrate a working digital banking infrastructure that can support the move towards a cashless society.

It should also be noted that while there are strong links between the countries most in receipt of remittances and those more cash-dependent, they are not the most cash-dependent countries in the world. What’s more, previous research has shown that India - the country that receives the most remittances per year - also has the most positive attitude towards becoming a cashless society.

5 Most Cash-Dependent Countries In A Cashless World

1. Niger

• ATMs per 100,000 Adults: 1.90

• Unbanked Adult Population: 88%

• Debit/Credit Card Ownership: 2%

• Digital Payment Engagement: 10%

• Wages Received in Cash: 54%

• Internet Access: 15%

Niger, with the highest unbanked population percentage (88% - just 12% have a financial account) and extremely low ATM availability (1.90 per 100,000 adults), faces significant challenges in financial inclusion.

The country's minimal debit/credit card ownership and low internet access further impedes the adoption of digital payment systems, keeping the economy predominantly cash-based for the foreseeable future.

2. Iraq

• ATMs per 100,000 Adults: 6.07

• Unbanked Adult Population: 81%

• Debit/Credit Card Ownership: 10%

• Digital Payment Engagement: 14%

• Wages Received in Cash: 75%

• Internet Access: 73%

Iraq has one of the lowest numbers of ATMs per capita - just 6 per 100,000 adults - which, combined with a high percentage of unbanked adults (81%), indicates a heavy reliance on cash transactions.

Despite higher internet access, the low levels of digital payment engagement and high rates of cash-based wage payments highlight the country's slow transition towards digital financial services.

3. Pakistan

• ATMs per 100,000 Adults: 11.11

• Unbanked Adult Population: 79%

• Debit/Credit Card Ownership : 8%

• Digital Payment Engagement : 18%

• Wages Received in Cash : 69%

• Internet Access : 30%

Pakistan, with a significant unbanked population (79%) and low ATM availability, faces substantial barriers in moving away from a cash-dependent economy.

The low percentage of card ownership (8%) and limited internet access (30%) are two key factors that further prevent the country from shifting towards digital payments, keeping the majority of financial transactions in cash until that infrastructure can be improved. 69% of the country still receive their wages in cash, while the country is also the fifth top remittance recipient.

4. Mauritania

• ATMs per 100,000 ​​Adults: 10.94

• Unbanked Adult Population: 77%

• Debit/Credit Card Ownership: 9%

• Digital Payment Engagement: 20%

• Wages Received in Cash: 48%

• Internet Access: 42%

Mauritania's financial landscape is characterised by a high unbanked population (77%) and limited ATM infrastructure, with just under 11 ATMs per 100,000 adults. Both factors indicate citizen’s are far more reliant on cash transactions than digital payments. While internet access in Mauritania is moderate, the low levels of digital payment engagement and debit/credit card ownership indicate that the majority of the population still relies on cash for transactions, including wage payments.

5. Chad

• ATMs per 100,000 Adults: 2.29

• Unbanked Adult Population: 76%

• Debit/Credit Card Ownership: 6%

• Digital Payment Engagement: 18%

• Wages Received in Cash: 40%

• Internet Access: 10%

Chad is another country that faces significant challenges in transitioning to a cashless economy, evidenced by its extremely low ATM density and high unbanked adult population. The minimal usage of debit/credit cards and low levels of digital payment engagement, combined with limited internet access, further underscore the country's heavy reliance on cash for everyday financial transactions.

Cash In Countries: Looking At The Ranking Factors

ATMs per 1,000 People

One of our key ranking factors was to look at the number of ATMs in a country per 1,000 people, demonstrating accessibility to banking services in each country. Top of the list, Uruguay (276.29 ATMs), demonstrates a robust banking infrastructure conducive to cashless transactions.

On the other end of the scale, Niger (1.9 ATMs) reflects a significant barrier to financial accessibility and reliance on cash.

Account Ownership at a Financial Institution

Next, we looked at the percentage of the adult population of each country that has an account either at a financial institution or a mobile money account. This also shows us the percentage of unbanked adults per country.

The UK indicates a fully banked population, essential for cashless economies. Niger (11.69%), once again, highlights a major challenge in achieving financial inclusion. The vast majority of the adult population are unbanked, showing a heavy reliance on cash and informal financial systems.

Cash Share of POS Transaction Value

We also looked at the percentage of cash used at point of sale transactions per country to give us an indication into the reliance on cash in day-to-day transactions. Nigeria’s reliance on cash transactions (62%) signifies a strong preference and dependence on cash for daily transactions.

At the other end of the scale, Australia relies on cash transactions just 6% of the time - with credit/debit and other digital payments being used the majority of the time.

Note: Cash POS Transaction data was not available for many countries featured in this ranking, so this should be taken as a secondary factor.

Debit/Credit Card Ownership

Another strong indication of a cash-independent society is the number of adults in the population that own a debit card or credit card - strongly tied to the number of banked/unbanked adults.

At the top end, 100% of Denmark’s adult population is estimated to own a credit or debit card, signifying a well-established card payment system. In Niger, on the other hand, just 2% of adults own a credit or debit card, indicating limited penetration of banking services and reliance on cash.

Internet Access

Moving towards a cashless society goes hand in hand with widespread internet access to make digital transactions a seamless possibility. Again, Denmark dominates here - alongside Iceland, the UK, and Canada.

With just 10% of its adult population having easy internet access, Chad’s lack of infrastructure poses a challenge to the adoption of digital financial services.

Countries Most Likely To Become A Cashless Society

Our analysis also enables us to look at the countries with the strongest indicators that they are moving towards a cashless society first.

1. Denmark

• Unbanked Adult Population: 0%

• ATM Availability: 41.03 per 100,000 adults

• Digital Payment Engagement: 100%

• Debit/Credit Card Ownership: 100%

• Internet Access: 100%

Denmark is another country that frequently tops the list for internet access, banked population, and digital-first transactions. Denmark's universal digital payment engagement and card ownership, combined with full internet access, indicate a rapid move towards being cashless.

2. Iceland

• Unbanked Adult Population: 0%

• ATM Availability: 70.43 per 100,000 adults

• Digital Payment Engagement: 100%

• Debit/Credit Card Ownership: 99%

• Internet Access: 98%

Frequently featuring at the top of all our ranking factors, Iceland is another country with a digital-first banking approach. With its fully banked population and maximum digital payment engagement, Iceland is well-positioned for a cashless future.

3. United Kingdom

• Unbanked Adult Population: 0%

• ATM Availability: 96.28 per 100,000 adults

• Digital Payment Engagement: 99%

• Debit/Credit Card Ownership: 97%

• Internet Access: 92%

The UK's fully banked population, high digital payment engagement, and widespread internet access make it a prime candidate for being one of the first countries to transition to a digital-first, cashless society.

4. Ireland

• Unbanked Adult Population: 0%

• ATM Availability: 44.91 per 100,000 adults

• Digital Payment Engagement: 98%

• Debit/Credit Card Ownership: 96%

• Internet Access: 89%

Ireland is another country well on its way to becoming a cashless society. Ireland is estimated to have a completely banked adult population, 98% of whom have sent or received money digitally and have access to the internet.

5. Canada

• Unbanked Adult Population: 0%

• ATM Availability: 212.44 per 100,000 adults

• Digital ​​Payment Engagement: 98%

• Debit/Credit Card Ownership: 98%

• Internet Access: 94%

Finally, Canada's nearly universal banking inclusion, high ATM density, and strong digital payment engagement position it as a strong contender for transitioning to a cashless economy.

Methodology

To compile an accurate ranking, we looked at a number of factors to help us assess the cash-dependency of over 60 countries. Sources for these factors include:

• WorldBank Global Findex Data (for account ownership, internet access, sending/receiving digital payments, credit/debit card ownership, wages in cash data)

• Global Economy ATM data

• FIS Global Payments Report for Cash POS Transaction data

• We also looked at the top countries receiving remittances for secondary data from Statista.

To ensure the accuracy of this ranking, data older than 2021 was not included. This is why some countries, such as the US, are not featured in the ranking.