Cash has been the king of payment options for many countries, but newer and more convenient methods are starting to steal its crown. A study published by Merchant Machine has ranked 20 countries by their overall “cash reliant index score” and looks at statistics including percentages of people with access to the internet, credit card use, and number of ATMs per 1,000 adults.
1. Romania
Romania is one of the world’s top cash-dependent countries, where 78 percent of payments are made using banknotes and coins. This reliance on physical cash reflects a mix of factors, including the percentage of the population that is unbanked, the number of ATMs per 1,000 adults and the availability of digital payment methods.
As a result, citizens have low levels of savings and fewer financial assets than their peers in Central and Western Europe. They also rely on less sophisticated investment products, such as cash, current accounts and deposits.
2. Turkey
Turkey is one of the most cash-intensive countries in the world, but its progress towards becoming a cashless society is slowing. In fact, the country is on track to miss its 2023 target.
The reasons are complex, but a few key factors have helped explain why.
For starters, it’s hard to beat the exchange rates that come with Visa, Mastercard or American Express branded credit and debit cards. These are generally 5% to 10% better than the exchange rate at banks or currency conversion centers.
But as for cash, it’s always best to get your lira from an ATM when you arrive in Turkey, rather than pay a high-fee exchange service like airport kiosks. Similarly, avoid the hotel front desks that charge a commission, and instead head to an exchange office near the Grand Bazaar in Istanbul, where the competition drives a good deal.
3. India
India is a country with a rich history that has benefited from the development of technology and infrastructure. This has led to the country becoming one of the world’s largest economies.
The Indian economy has traditionally been dominated by cash, but now there are different types of digital payment methods available. These include credit cards, debit cards, Internet banking, and e-wallets.
While the number of people using these options has increased, cash remains popular for small transactions. For example, according to a survey published by The Times of India, most people use cash for grocery shopping and paying for food deliveries.
The same survey also found that cash was the top usage area for property transactions. This suggests that black money continues to be a major problem for the Indian economy.
4. Japan
Japan is one of the most cash-driven societies in the world, with cash transactions making up nearly 20% of its GDP. Compare this to Sweden, which has less than 2% of currency in circulation, and it’s easy to see why Japan’s economy is so reliant on cash.
While a small number of Japanese stores and restaurants accept credit cards, most business is conducted in cash. This is largely due to the fact that Japanese families and small businesses are often unable or unwilling to pay large credit card fees.
While cash payments have made some inroads in recent years, they are still a significant percentage of the country’s transactions and remain a key part of the Japanese economy. The government is looking to encourage cashless payments, with the goal that 40% of all transactions will be carried out electronically by 2025.
5. China
China is a nation with a rich history, a vast population and an impressive economy. It has an unusually well rounded and complex political system.
A country’s money supply is an important economic indicator. It impacts prices, capital availability and inflation.
There are many ways to calculate a country’s money supply. The most effective approach takes into account the economy as a whole, as well as individual sectors.
One of the best ways to measure a country’s cash flow is through the use of electronic banking and mobile payment solutions. This is particularly true in urban centers like Beijing, where the use of cash has declined dramatically over the past decade. The main reason for this is the development of alternative methods such as electronic wallets, mobile payments and cryptocurrencies.