Number of digital payments worldwide 2013-2021 with forecasts to 2027, by region

The number of cashless payments in Asia-Pacific is forecast to be higher than transactions in Europe and North America combined. This is according to research from Capgemini Research Institute for Financial Services Analysis. In 2021 - the most recent year estimated by the source - 456 billion U.S. dollars in non-cash transactions were carried out in Asia-Pacific. Europe and North America followed, with 259 and 205 billion U.S. dollars in transactions respectively. From 2022 onwards - which are all forecasts - the source predicts a significant growth in Latin America (Brazil, Peru, Colombia) due to the implementation of instant payments.

What are non-cash transactions?

The major non-cash payment methods remain credit and debit cards, direct debits, and credit transfers. However, financial technology (fintech) firms have developed a variety of mobile alternatives, though these depend largely on the existing methods. For example, the money transfer and payment service PayPal accepts credit card and bank transfer, and virtual wallets such as Apple Pay, Google Wallet, and Samsung Pay simply tokenize existing credit cards for more secure transfers.

The persistence of cash

While many countries are increasing the value of cashless payments they process, some are continuing to use cash. Advocates of cash payments argue that it requires no technological investment such as a smartphone, and that cash payments protect privacy by being impossible to track. There may also be an impact of generation on payment methods, but it does not seem to indicate a significant reluctance of older generations to embrace technology.