I've been based in Vietnam for the past few years. This country seems to be relatively slow in adopting digital payment methods (which is just fine by me, btw.). Cash is still accepted anywhere and also still appears to be the most common payment method. When it comes to digital payments, regular bank transfers via bank apps seem to be the most popular option. I take it that the same is the case for other countries in the region, such as Thailand, Cambodia and Laos. But it does make me wonder, how is the situation in other places? Do people in your country still use cash on a daily basis? If not, what is the go-to payment method?
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Germany's broadly a hold-out. Particularly a lot of restaurants, bars and clubs are still cash-only, and some smaller shops definitely prefer cash. Used cars are, interestingly, almost always cash-only. Person to person transactions (i.e. buying something you pick up in person) are almost always cash. Open air markets (produce, flea markets) are always cash.
Electronic payments are becoming more accepted, but it's wise to almost always have some cash on hand.
Cash retains a certain appeal for privacy reasons, and, let's be honest, for businesses avoiding paying their taxes. I'm actually happy cash remains. I don't like the idea of everything I ever buy being recorded. I also don't mind when e.g. going out that I have to consciously get more cash from the ATM when I've blown through my evening budget.
This is in amusing contrast with my trip to Sweden last year, where I pulled out the equivalent of €100 for emergencies, and had trouble getting rid of it in the week and a half there since most places didn't seem to even take cash.
Overall, our experience is that it is impossible to be out and about cashless in Germany as there is no telling which bar / beergarten / restaurant / shop only accepts cash.
I prefer using credit card, as it's easy to lose track of how much I'm spending with cash. With card, I have a statement at the end of the month so I can see what I have spent.
On the other hand they still prefer paper money, fax machines and paper forms instead of their electronic versions.
Even street vendors have debit/pin machines (Zettle/SumUp etc), and with mobile phones starting to be able to act as a receiver there would be no reason to use cash at all. I don't like the privacy implications but it's immensely practical.
For sending money to others, sharing bills etc you use Tikkie which generates a link or QR code that anyone can use to pay you via iDeal (debit).
It's interesting to see how it varies in other European countries. In Germany and Belgium you kind of have to carry some cash or you will find yourself unable to pay at many small restaurants and shops.
On the other hand, in Sweden, Spain, UK, etc., I also never touch cash. I have been to Sweden multiple times and I have no idea what Swedish money even looks like.
I pay everything through contactless payments through my phone or my debit card barring that.
Some shops don't even take cash anymore because of how few of their customers paid in cash compared to how risky carrying that cash to the bank is. I'm not very happy with that development, but I can understand why they do it.
Some people prefer cash, some people prefer using their debit card (chip + PIN is generally very secure, of course!).
I moved here a few months ago from Ireland where cash was still around but a fairly small percentage of retail transactions, but _very_ common for paying for services. Every tradesperson I used wanted me to pay cash and would charge me more if I didn't (they were committing tax fraud). At one point I was expected to have €3,000 in cash just lying around for a stonemason.
I still don't think I can pay for my groceries with my credit card, but that's clearly indicated at least. I expect the companies refusing the huge processing fees to block credit cards for years to come until the fees go down. That's unfortunate for tourists and immigrants, but mobile payment (bank specific/Apple Pay/Google Wallet) should work over the standard protocol and otherwise there are still ATMs you can use.
Central Bank will test digital Ruble asset in the recent time, it's some sort of limited conversion currency, like you get a payment for child care and it's possible to use only for limited products to purchase.
Please note that card payments are not at all popular in India and UPI is the most common means of digital payment.
Edit: I meant card instead of cash
This is false. https://www.orfonline.org/research/indias-upi-market/ (article from last month, citing the latest figures available to it.) "While India has recorded a significant increase in digital transactions, cash is still the dominant payment mechanism, with cash usage accounting for 59.3 percent of transactions volume in 2021."
This is a very privileged (and personal) view.
In terms of objective hard data, the percentage of Cash in Circulation to GDP (CIC/GDP) in India is about 12.7% which is about the same as 2005-2015 figures (12.1%), in fact it’s slightly higher.
Essentially the ratio of cash in circulation to the total economy hasn’t changed materially, in fact it’s gone up slightly, measured over a decade.
Note that CIC/GDP did rise to 14.4% in 2021 due to GDP shrinkage post COVID, so it’s fallen from then, but that was a one-off blip.
Why CIC/GDP has not fallen further needs more investigation, but an interesting nugget is that most UPI transactions are very low value, 2/3rds under INR 500 ($6).
It’s also worth considering the impact of internet shutdowns, which can be long and sustained. People living in New Delhi won’t realise this, but many parts of the country have experienced this. Of course UPI now has “offline mode” (Lite) but it’s limited to small-value payments.
Some of the stats above was drawn from here[1], the writer is quite well known in finance journalism circles.
[1] https://www.deccanherald.com/opinion/sorry-cash-isn-t-going-...
smartphones are necessary to pay via UPI
smartphones--bank accounts--aadhaar card
in case of some low income workers, smartphones are not universal
in case of some migrant workers (including those that come from neighboring countries in search of jobs) .. aadhaar or bank account may not be immediately available
while digital payments are definitely becoming common cash is still accepted
in some cases autorikshaw drivers either avoided UPI (because something went wrong previously and their account went into negative balance ..so any payments they accept there will be swallowed by the app) ..or sometimes ask for cash as preferred mode because for them it is easier to spend immediately (sometimes even for sentimental reasons like first ride of the day)
Cash creates a problem of giving change that end up dissatisfying the customer or the customer just leaves. Only after UPI people understood this so now they want you to buy it as payments are not a hassle. Rickshaws in cities have lost interest in random hires. I have waited 45 minutes for rickshaws. Everyone is on Uber or Ola cause they will show up and say cancel the request and give me little less money instead. Pretty common. So they don’t have the option to say no to UPI. They try to give you reasons why it’s not working but they just want cash for obvious reasons.
UPI also allows people to have multiple accounts in family to accept payments. This way they can avoid any tax payments as small amounts in small villages are not scrutinised by the income tax department.
UPI has created more and easier transactions. Small village or big town, I’ve never seen a shop without a QR code in the last year or so.
(I don't have an Aadhaar, and it works fine across multiple banks)
No.
[1] UPI money transfer without Internet or smartphone; know how to do it - https://www.businesstoday.in/industry/banks/story/upi-money-...
I was just in India, and while I didn't do very many of the transactions that a resident would, I used cash for almost everything (except for supermarkets where I paid with my non-Indian credit card).
It didn't feel at all difficult to get by with cash.
Delhi != India. Cash is still very popular in India and many shopkeepers groan when I ask them to show their QR code for payment.
Isn't it causing you an uncomfortable feeling, that one company gets all the data about every single thing you buy?
And via this also everywhere you go and when you go there?
So you are a 100% "see through" person to Apple, Google and/or Visa?
I think what I've realised (at least personally), is that we only have a short time to live on this planet, and if life can be made more convenient by offering up my data, allowing me to spend my time doing stuff I actually care about, then I'll do it.
Personally, I'll stick to using the special transport card or cash on public transportation as long as I can. I hate the idea of all my movements being sold to advertisers (or, actually, anyone paying some moneys).
I feel much more comfortable spending money, knowing that;
1. It's the banks money, I can contest any changes on my statement before any money leaves my account. (consider paying for a bathroom renovation and the builder runs off with money or goes bust. The bank takes the hit, not me.)
2. That mass-data helps protect me, such as, abnormal usage can be queried for protentional fraud automatically.
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I find it funny when crypto bros were claiming it was about "banking the unbanked", when it's not a problem at least in a third-world country in Brazil. Banks are obligated to open at least a very basic bank account for basically anyone.
There are tons of “fintech” companies backed by VCs, each trying to capture a chunk of the market with heavy competition. They sometimes partner with traditional banks to offer services.
Meanwhile, the linking of the so-called unique number given to residents (not just citizens), called “Aadhaar”, with bank accounts has resulted in more frauds and thefts through biometric scams (gummy fingers). The Aadhaar number as well as fingerprints are obtained from property registration documents, which are publicly exposed.
With UPI, there is a “payment request” mode too. Since digital literacy is extremely low in India, a lot of people have been losing money through various vishing and phishing scams. Getting the money back may also require greasing the palms of law enforcement.
As for me, I encourage people to use cash. I use a combination of cash and online payments. I carry all combinations of currency notes and coins to pay for any amount. I also have a rough idea of how much I’d need.
Whenever more people realize that the government is tracking their spends (including the push for a retail CBDC), they’ll start switching to cash mainly to evade taxes. So far though, most people have neither realized nor understood privacy concerns, give surveillance, etc. (I’m not blaming the poor and vulnerable sections, who already have a lot more to worry about)