Cashless payments have experienced steady growth across emerging market and developing economies (EMDEs), signaling a profound transformation in how people handle everyday financial transactions. According to the most recent retail payment analysis from the Bank for International Settlements (BIS), these regions are outpacing their advanced-economy counterparts in shifting away from traditional cash reliance toward digital alternatives.
The research findings, drawn from the Red Book statistics compiled by the BIS Committee on Payments and Market Infrastructures, underscore a broader global move toward faster, more convenient payment methods while highlighting regional differences in adoption patterns.
In EMDEs, the average number of cashless transactions per person jumped 21 percent last year, climbing to 242 annually.
This expansion contrasts sharply with advanced economies (AEs), where the figure rose a comparatively modest 6 percent to 579 per capita.
The disparity reflects how EMDEs are leveraging technology to bridge gaps in financial access, enabling millions to participate more fully in the formal economy without needing physical bank branches or currency.
Credit transfers emerged as the standout performer in these markets, fueling much of the volume increase.
Fast payment systems, in particular, have taken center stage, now making up nearly half of all cashless activity in EMDEs—up significantly from prior levels.
These instant-transfer tools allow users to send funds in seconds, often for modest amounts, making them ideal for daily needs like bill payments, peer-to-peer transfers, and small business dealings.
By comparison, growth in advanced economies has centered on card payments, with individuals there averaging 361 card uses per year—far exceeding the 95 recorded in EMDEs.
Other instruments, such as direct debits, cheques, and e-money, saw limited traction in both groups.
On the value side, cashless payments as a share of GDP edged higher by 3 percent in EMDEs, while holding steady in AEs.
Credit transfers continued to dominate the overall value pie, accounting for 94 percent in developing markets and 86 percent elsewhere.
Average transaction sizes have also evolved: they stabilized around $529 in EMDEs but dipped in AEs, reflecting a tilt toward smaller, more frequent digital exchanges.
This momentum aligns with wider digital infrastructure upgrades. Many EMDEs have rolled out enhanced fast-payment platforms with new capabilities, including mobile access for basic phones and links to neighboring countries’ systems.
Such innovations have lowered barriers, sped up settlements, and encouraged even small-value usage.
At the same time, the data shows cash is far from obsolete.
Withdrawals have grown less frequent worldwide, yet the typical amount taken out has risen—suggesting people still turn to notes and coins for certain purposes or as a safety net.
Overall currency in circulation has steadied at roughly 9 percent of GDP, varying widely by country but confirming its lingering role as a trusted store of value.
The BIS report, covering jurisdictions that represent about 59 percent of the global population and 85 percent of world GDP, paints an encouraging picture of financial modernization.
For EMDEs, the surge promises greater inclusion, reduced costs, and stronger economic resilience.
BIS concluded in the research report that policymakers and fintech innovators can use these benchmarks to refine strategies, invest in resilient systems, and address remaining gaps in access. As digital payments gain ground, they are reshaping not just individual habits but entire economies—paving the way for more efficient, inclusive growth in an increasingly connected environment.