It’s better and safer to carry cards than cash while traveling. About 46% of travelers admitted that they have fallen victim to theft or robbery while traveling, and almost half lost cash.
Avoiding this fate is why many seasoned travelers advocate for going cashless, prioritizing security above all else.
This post will discuss the concept of cashless societies and its benefits. Also, we’ll share the top destinations for travelers who prefer using their cards and digital wallets over cash.
Why should you travel cashless?
Here are compelling reasons why you should join the cashless wave. A cashless lifestyle offers numerous benefits worth considering.
Better security
You know how it is when you go to the ATM. You always look over your shoulder to ensure no sketchy person is hanging around. It's a relief that we have so many digital payment options. Now, you don't need to carry cash all the time. That means less chance of becoming a target for muggers or thieves.
Convenience
Who wouldn't appreciate saving time, especially when dealing with banks? Fortunately, nowadays, people have numerous digital options that allow them to manage transactions without cash or needing to be physically present.
Moreover, you can purchase overseas in various currencies with most debit cards without incurring foreign exchange fees. On top of that, you can also conveniently pay merchants by scanning or tapping your debit or credit card.
Suppose you went out for lunch or dinner at a restaurant in a small town you visited, and there’s no ATM to dispense cash. You can tap your card on the merchant’s handheld POS system to pay for your meal.
Savings
Using digital payments like credit cards can save you money. You get rewards points from your bank that you can use later on. And some credit cards will give you airline miles when you use them.
Plus, the companies that run credit cards and digital payment apps often partner with stores and restaurants. Because of those partnerships, you can find extra discounts or promo deals when you pay with your card or app instead of cash.
Cities like China, Singapore, Seoul, Stockholm, and Reykjavik plan to go completely cashless. Many wonder what that means for retailers, online stores, and companies that process payments for them.
These cities don't even come close to being the whole world, but merchants that take all kinds of payments might need to get used to more alternative options besides cash.
No countries have entirely ditched cash yet. That said, more and more places are looking to do so in the next few years. But for now, if you want to travel cashless, consider the following destinations.
Norway is leading the way towards a cashless society in Europe. The Nordic countries are generally ahead of the curve regarding cashless payments. This phenomenon is likely because people in these countries highly trust financial institutions. They are also very open to new digital technologies, even older generations.
According to the World Bank, nearly 98% of Norwegians own a debit card. Over 95% of people use mobile payment apps for purchases. And the rate of using physical cash for point-of-sale transactions is only 3-5%, one of the lowest in the world.
In 2021, Norway's central bank started looking into options for a digital currency. This could push society even more towards being cash-free. However, going completely cashless isn't without concerns.
Sweden was the first European country to start using banknotes. But now, they might be among the first to stop using them. Sweden is pushing everyone to go cashless. The government encourages it, and stores can refuse cash if they want to.
On top of that, over 98% of Swedes have a debit card. Sweden is at the top of the list for mobile payments, too. They are fully embracing this cashless future.
Their central bank, the Bank of Finland, predicts the country will be cashless by the end of 2029, just like their neighbors in Scandinavia.
Almost everyone in Finland has a card—98% have a debit card, while 63% have a credit card. Cashless transactions there were expected to hit almost 60 billion euros this year. And over 80% of Finns prefer to pay with debit when shopping in person at stores.
China may be a little behind Finland and Sweden in electronic payments now, but you must remember China has over a billion people. So even small increases in mobile payments mean hundreds of millions of more people switching to digital.
Chinese consumers have fully embraced mobile payments, with QR code scans via smartphone apps becoming ubiquitous. From groceries to utility bills, most transactions are now conducted digitally.
This trend is unsurprising, given China's dominance in online shopping. It has an eCommerce market exceeding $600 billion annually and growing by over 25% yearly, solidifying its position as the global leader in internet sales.
This year and beyond, cash will only account for about 1.6% of store purchases in Hong Kong. This figure represents the lowest percentage in the Asia Pacific region, declining from 9% in 2019. While credit cards dominated as the most popular online payment method in 2019, digital wallets are forecasted to surpass them and claim the top spot by 2024.
This is because more people are shopping online now than ever before. However, the government also recently gave out billions in spending vouchers to help out during COVID-19, which also encouraged more digital payments. Stores said people used the vouchers and kept using things like AlipayHK and WeChat Pay instead of cash.
Note, however, that places like wet markets and taxis still mostly prefer cash.
Although fewer people live there, South Korea is more cashless than China. Everyone in South Korea uses credit cards and mobile payments for everything. Most places already have technology nationwide, allowing them to go entirely cashless.
In 2023, the annual value of card transactions in South Korea's cards and payments market was estimated at $991.2 billion. It's expected to experience a compound annual growth rate (CAGR) exceeding 7% from 2023 to 2027. South Korea boasts a well-developed card and payment industry, with its consumers extensively utilizing card payments.
Factors driving this adoption include a huge banking population, heightened financial awareness, banks offering various customer incentives, and governmental initiatives promoting cashless payment methods.
More than 50% of consumers in the UK use digital wallets. The main reason is convenience—digital payments allow people to leave the house without carrying a bulky wallet.
Almost half (48%) of those who regularly use digital wallets use them to store plane, train, or bus tickets, while about a third utilize them to store event tickets or loyalty cards.
The Netherlands is leading the way in digital payments, with nearly everyone owning a debit card—about 37% of the population. Over half of all transactions last year were made by tapping a card or debit.
This trend suggests they're nearing a cashless society. While cash is still used occasionally, the country's progress in contactless and online payments is remarkable.
Image by Clay Banks on Unsplash
As technology evolves and digital payment options become even more ubiquitous, cashless travel will undoubtedly become the norm, offering travelers a seamless and efficient experience wherever their adventures take them.
So pack your bags, leave the cash behind, and embark on your next journey confidently, knowing that the world's most digital-friendly destinations await your exploration.
