According to a new report by Worldpay, cash payments are on a steady decline, and digital payments offering cashless transactions are a significant reason for this. The last decade has significantly boosted mobile technologies, with changes in consumer behavior—accelerated by the pandemic—and evolving security protocols transforming how people pay for goods and services.
According to this recent report and the opinion of some industry leaders, cash is no longer king. Instead, digital alternatives—from digital wallets and contactless payments to buy now, pay later (BNPL) solutions—are spearheading the payments ecosystem.
Key Takeaways
- Cash payments have dramatically decreased globally. It has dropped from 44% of in-store transactions a decade ago to only 15% in 2024. Regions vary significantly, with developed markets like North America and the UK rushing toward digital. Areas like the Middle East and Africa remain heavily cash-dependent.
- Digital payments have surged over the last decade, with digital wallets and “Buy Now, Pay Later” (BNPL) solutions showing the most significant growth. Digital wallets increased from $1.6 trillion in 2014 to $15.7 trillion in 2024.
- The pandemic has not but fueled the adoption of contactless and digital payments. COVID has prompted consumers and merchants to shift rapidly from cash due to health and operational efficiency. This has made digital solutions integral to merchant operations, driving down costs associated with cash handling.
- Investments in secure digital payment infrastructure—including encryption, tokenization, and biometric authentication—have built consumer trust and safety. However, the ongoing digital transition raises critical financial inclusion and data security issues, prompting collaborative initiatives to ensure digital payment solutions remain accessible and secure for all consumer segments.
Digital Wallets and BNPL Drive Cashless Transactions Worldwide
The Worldpay Global Payments Report vividly depicts the past ten years. Historically, cash once accounted for a significant portion of in-store transactions. For example, Digital Transactions highlights that cash usage globally has dropped from 44% of in-store spending a decade ago to just 15% in 2024, with an expected annual decline of approximately 2% compounded through 2030. In markets like North America, cash’s share currently sits around 20%.
In contrast, regions like the Middle East and Africa still rely heavily on money, with figures reaching as high as 82% of transactions. This shows that the shift to digital payments is not limited to one region but is a global trend, with regional variations driven by infrastructure, economic factors, and consumer preferences.
Digital payment growth is equally impressive. Over the past decade, digital methods—including digital wallets, account-to-account transfers, BNPL, and even cryptocurrency transactions—have soared from a modest 3% share of global in-person shopping value in 2014 to a robust 38% in 2024. For instance, the total value of digital wallet transactions surged from $1.6 trillion in 2014 to an astonishing $15.7 trillion in 2024. Similarly, BNPL, nearly negligible a decade ago, has witnessed explosive growth, with e-commerce transactions ballooning from $2.3 billion to $342 billion over the same period.
Adam Coyle, the Chief Strategy Officer at Worldpay, stated that the transformation in payment systems over the last ten years was influenced by the advancements in mobile technology and significant societal changes, especially during the global pandemic. He noted that merchants who quickly adapted to these evolving trends have succeeded wildly. Coyle also emphasized that the continued expansion of digital technologies is set to redefine the retail landscape by seamlessly integrating online and offline shopping experiences, thereby improving convenience, dependability, security, and speed.
The proliferation of smartphones and mobile apps has been one of the most significant catalysts for digital payment adoption. As consumers increasingly shop online or use mobile devices for in-store payments, digital wallets, and contactless payment solutions have become ubiquitous. Worldpay’s report notes that by 2030, mobile devices are expected to account for over half of in-person transactions, indicating that the convenience and security of digital payments are set to redefine consumer expectations.
Mobile technology has also democratized access to payment solutions. With a simple tap or scan, consumers can pay for everything from coffee to groceries without needing physical cash. This ease of use is further enhanced by features like one-click checkout, installment options, and integrated loyalty programs, which drive consumer engagement and streamline purchasing.
The COVID-19 pandemic further significantly accelerated the transition to digital payments. Social distancing measures and concerns over physical contact forced consumers and merchants to adopt contactless and digital payment methods at an unprecedented pace. According to Worldpay, the U.S. saw a more than 20% decline in cash usage from 2018 to 2020, and projections indicate that cash will account for less than 10% of point-of-sale transactions in the United States by the end of 2024.
For many merchants, the pandemic was a wake-up call to re-evaluate their payment acceptance strategies. The forced move away from cash minimized health risks and highlighted the operational efficiencies of digital transactions. Reduced cash handling translates into lower operational costs and minimizes risks associated with theft, human error, and the complexities of cash reconciliation.
Developing a robust digital payment infrastructure has played a critical role in building consumer trust in digital alternatives. Financial institutions and payment processors have invested heavily in secure transaction systems, including encryption, tokenization, and biometric authentication, making digital payments safer. Plus, many digital payment platforms offer features such as real-time fraud monitoring and instant dispute resolution, adding layers of protection that traditional cash transactions simply cannot provide.
In the United States, the decline of cash is not just a matter of convenience but an economic imperative. Worldpay’s insights reveal that in the wake of the COVID-19 crisis, U.S. merchants have experienced an accelerated decline in cash usage. With digital wallets emerging as the preferred payment method, nearly 40% of these wallets in the U.S. are funded by credit cards, debit cards, and direct bank accounts – a shift towards integrated payment solutions that offer speed, security, and seamless interoperability across online and offline channels.
Merchants in the U.S. have been compelled to adopt digital payment solutions to gain a competitive advantage and address the operational challenges of cash. Manual cash handling processes, from counting and reconciling to securing and transporting cash, can be labor-intensive and costly. The move to digital payments eliminates many hurdles, allowing businesses to focus on core operations while enjoying faster transaction times, reduced errors, and improved customer experiences.
Additionally, emerging technologies such as account-to-account (A2A) payments are beginning to influence the U.S. market. For example, innovative solutions like Walmart Inc.’s upcoming “pay by bank” option, developed in partnership with leading financial technology providers, are set to disrupt traditional payment models further and offer consumers even more choices at the point of sale.
Across the Atlantic in the United Kingdom, the payment industry has witnessed a similarly dramatic transformation. According to Financial IT, the share of cash in the UK’s point-of-sale spending dropped from 32% in 2014 to a mere 10% in 2024, amounting to a reduction of £128 billion in cash transactions. Yet, despite this dramatic decline, cash remains a part of the ecosystem, projected to account for about 8% of in-store spending by 2030.
Digital payments in the UK have experienced explosive growth. Digital wallets, for instance, have not only become a key component of online spending—accounting for an ever-increasing share of e-commerce transactions—but are also making significant inroads at the point of sale. Projections indicate that digital wallets will account for 33% of in-store spending by 2030, equaling £447 billion in transactions. Also, BNPL solutions have expanded from under 1% of online spending in 2014 to 7% in 2024, further underscoring the rapid evolution of consumer payment preferences.
Despite the surge in digital transactions, the UK’s loyalty to cards—particularly debit cards—remains strong. With total spending via cards reaching nearly £1 trillion across online and offline channels, debit cards are particularly favored by consumers mindful of budgeting and financial discipline. Around 63% of digital wallets in the UK are funded by cards, reinforcing the idea that while consumers are moving towards digital alternatives, traditional instruments like cards still play a critical role in everyday transactions.
The gradual decline in cash usage brings profound operational and strategic shifts for merchants. One of the most significant benefits of a cashless system is reduced operational costs. Handling cash is inherently labor-intensive, involving cash transportation, secure storage, counting, and reconciliation expenses. Digital payments, by contrast, are largely automated, reducing both the time and cost associated with processing transactions.
The shift to digital payments opens opportunities for enhanced analytics and customer insights for small and large enterprises. Digital transactions create a wealth of data that can be leveraged to understand consumer behavior, tailor marketing strategies, and optimize inventory management. This data-driven approach improves operational efficiency and offers a competitive edge in a rapidly digitizing market.
Plus, a digital-first payment strategy supports the development of omnichannel commerce, where consumers enjoy a seamless shopping experience online, in-store, or on mobile devices. Worldpay’s research suggests that nearly 65% of consumer spending in 2024 can be attributed to cards when digital wallet transactions and e-commerce are considered. For merchants, offering multiple digital payment options is no longer optional—it’s essential for staying competitive.
Merchants now seek providers who can offer more than just the essential infrastructure for payment processing. They require partners who understand the nuances of digital transformation, can integrate advanced security measures, and provide additional services such as loyalty program integration and omnichannel capabilities. This holistic approach to payment strategy is becoming increasingly critical as consumer expectations rise.
Looking ahead, digital payments are set to continue climbing. Projections from Worldpay forecast that global e-commerce spending will exceed $10 trillion by 2030, up from $6.8 trillion in 2024. The increasing adoption of smartphones and digital wallets underpins this growth. In the United States, it is estimated that 53% of in-person transactions will be conducted via mobile devices by 2030.
Beyond consumer convenience, emerging payment innovations such as biometric authentication, blockchain-based security, and real-time transaction analytics are set to enhance the digital payment experience further. These technologies improve security and reduce friction at the point of sale, ensuring that transactions are both rapid and reliable.
Additionally, the ongoing integration of alternative payment methods, such as account-to-account transfers and BNPL services, will continue to reshape the competitive landscape. As merchants expand their digital acceptance capabilities, they will need to adapt continuously to meet changing consumer demands. The future of payments is likely to be characterized by an ecosystem where digital and traditional methods coexist, each serving distinct segments of the market based on convenience, accessibility, and consumer preference.
While the rise of digital payments brings numerous advantages, it also poses challenges that need careful consideration. One of the most critical issues is financial inclusion. Cash has long served as a vital tool for underbanked and unbanked populations who may not have access to digital banking services. As the shift toward digital accelerates, there is a risk that these population segments could be marginalized unless targeted initiatives are implemented.
Several stakeholders—including governments, payment processors, and merchants—are working to ensure that digital payment solutions are accessible to everyone. Programs aimed at integrating electronic benefit transfers (EBT) and other social services into the digital payment infrastructure have emerged as essential initiatives. These programs are designed to bridge the gap and provide secure, efficient payment options for all segments of society.
Plus, as digital payments become more pervasive, it is crucial to address data privacy and security concerns. Consumers are increasingly wary of the potential for data breaches and misuse of personal information. Ensuring robust cybersecurity measures and transparent data governance policies will be key to maintaining consumer trust in digital payment systems.
Conclusion
The decline of cash payments in favor of digital alternatives marks a significant shift in the global payments landscape. Worldpay’s report highlights how advancements in mobile technology, changing consumer preferences, and the impact of the pandemic have accelerated the adoption of digital wallets, contactless payments, and BNPL solutions. While this transition offers benefits such as greater convenience, efficiency, and security, it also presents challenges for financial inclusion and data privacy.
The payments ecosystem will continue to evolve, driven by innovations in biometric authentication, blockchain security, and real-time transaction processing. As mobile devices become the dominant tool for in-person payments, merchants and financial institutions must prioritize seamless, secure, and versatile payment experiences. However, ensuring that digital payment solutions remain accessible to underbanked populations will be essential to avoid deepening financial disparities.
Ultimately, the ongoing decline of cash signals a broader transformation in how consumers and businesses handle transactions. For merchants, adopting digital payment solutions is not just a convenience but a competitive necessity.
