The 2016 World Payments Report, published by BNP PARIBAS and Capgemini, concludes that global non-cash transaction volumes grew by 8.9% in 2014, to reach 387.3 billion in 2014. While growth was essentially driven by emerging markets and China in particular which grew by 47%, mature markets1 represent 71% of worldwide transactions.
With regard to Money in physical form such as banknotes and coins. More, the report emphasizes that The value (or number of units) of the banknotes and coins in circulation within an economy. Cash in circulation is included in the M1 monetary aggregate and comprises only the banknotes and coins in circulation outside the Monetary Financial Institutions (MFI), as stated in the consolidated balance sheet of the MFIs, which means that the cash issued and held by the MFIs has been subtracted (“cash reserves”). Cash in circulation does not include the balance of the central bank’s own banknot... More has increased across multiple markets during the past five years. Growth is driven by anonymity, the fact that it is free to use, cultural habits but also obsolete A transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More infrastructures. Measured in relation to GDP, cash in circulation has incresed in major markets with the exception of Nordic countries including Sweden. A less know statistic, is that non-cash payments measured by the number of transactions per inhabitant, have also declined in some countries in 2014: Luxembourg (-1.8%); Ireland (-5.9%); Spain (-0.2%) Malta (-0.6%).
Cash in Circulation as a percentage of GDP in the U.S., U.K. and Eurozone (%), 2010-2014
Source: Capgemini Financial Services Analysis, 2016; Bank for International Settlements Red Book, 2014 figures released December, 2015
While many countries are taking measures to discourage the use of cash, the Swedish
central bank has informed banks that they are required by law to provide customers with at least one free payment service such as cash.
The report concludes that “Based on current usage patterns, cash is expected to remain a significant Device, tool, procedure or system used to make a transaction or settle a debt. More in the near future, even in markets that offer advanced digital payments.”
1 Mature markets include North America: Canada and the U.S.; Europe: Nineteen Eurozone countries: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Portugal, Netherlands, Slovenia, Slovakia, Spain and four non-Eurozone countries: Denmark, Sweden, Switzerland, and the U.K; mature Asia-Pacific: Australia, Japan, Singapore, and South Korea.