Cash is not expected to disappear entirely from Europe in the near future, despite a rapid decline in usage and the rise of digital payments. While cashless, electronic, and mobile payments are becoming dominant—with cash transactions falling to 52% of point-of-sale payments in 2024—the European Central Bank and central banks are actively working to ensure that cash remains available, accepted, and a viable payment option.
In reality, the package, which is due to take effect in July 2027, imposes an EU-wide cap of €10,000 on cash payments made only to businesses in professional transactions. This is part of an EU bid to combat money laundering. Private transactions remain, however, unaffected by this rule.
The UK is rapidly moving towards being a low-cash, but not fully cashless, society, with digital payments dominating, yet cash remains crucial for millions, especially vulnerable groups, leading to government efforts to protect access via legislation, banking hubs, and ATMs, even as some businesses go card-only and digital ID plans emerge. While cash use has plummeted (less than 10% of payments in 2024/25), the Bank of England and officials stress that a completely cashless system isn't feasible or desirable yet, focusing on maintaining choice and access for everyone, including the elderly and low-income individuals.
The share of cash payments at the point of sale (POS) has been gradually declining in the eurozone. The number of cash transactions fell by 27 percentage points from 79% in 2016 to 52% in 2024. Over the same period, the value of cash payments dropped by 15 points, from 54% to 39%.
Sweden leads the Nordic countries—and all other nations worldwide—in its efforts to become a cashless economy. But countries such as Finland and Norway also aim to have their economies dominated by digital payments.
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Which country is 100% cashless?
Sweden has officially become the first country in the world to go completely cashless. Almost every shop, café, and public transport system in Sweden now accepts only digital payments like cards or mobile apps. The popular app “Swish,” launched in 2012, is used by millions of Swedes to send and receive money instantly.
The risk of other crimes such as identity theft, account takeovers, and fraudulent transactions will also increase when digital payments become the only option. Many banks are also relying on outdated infrastructure with decades-old IT systems increasing the risk of glitches, crashes, and mistakes.
Perhaps the most surprising thing about the world in 2050 is that we will no longer be using money as we now know it. Not only will we see the disappearance of notes and coins - which it is commonplace to assume will be replaced by 'electronic cash' - but also of the type of money we now hold in our bank accounts.
While digital payments are set to dominate in the future, cash still plays a crucial role, particularly in rural and semi-urban regions where digital adoption is slower. Retail transactions, however, are increasingly digital, with paper-based instruments such as cheques now nearly obsolete.
A collapsed euro would likely compromise the Schengen Agreement, which allows free movement of people, goods, services, and capital. Each member country would need to reintroduce its national currency and the appropriate exchange rate for global trade.
It is not illegal to keep cash at home in the UK, but it should be stored securely to mitigate risks. The amount of cash to have on hand varies, but a small amount for emergencies is recommended while keeping most in a secure bank account.
Although it seems as though digital payment systems are slowly replacing cash in everyday life, cash will by no means disappear by 2025. Very few people leave the house without any cash in their wallets. Whether it's for parking meters, change, or tips, you never know when you might need it.
Economists and analysts at Cambridge Econometrics found that, by 2035, the UK is anticipated to have three million fewer jobs, 32% lower investment, 5% lower exports and 16% lower imports, than it would have had been. The report states that the UK will be £311bn worse off by 2035 due to leaving the EU.
Not yet. However, a 2024 report from the International Monetary Fund suggests that we might not be too far away from seeing the first. It suggested that Sweden would be the first completely cashless economy as soon as the end of 2025. This is unlikely to happen now, though.
To put it abruptly, yes, shops in the UK can legally refuse cash payment. While cash is considered a legal tender, businesses have no legal obligation to accept it and have the right to set their own payment policies.
UK Finance research has shown that 39% of adults live an almost cashless life. As well as predicting that cash payments in the UK will continue to decline, and that by 2031, cash will account for 6% of all payments.
More than half of Gen Z (53%) say they only use physical cash as a last resort, and nearly one in three (29%) describe cash users as “out of touch” or “cringe.” Over half (54%) admit they are more likely to spend impulsively when using cash compared to digital payments.
There are so many motives or the determinants of cash holdings. At least, there are four motives for firms to hold cash. There are transaction motive, precautionary motive, tax motive, and agency motive. There is one additional motive to hold cash that is speculative motive.
By 2050, China is projected to be the world's largest economy by total GDP, followed by the United States and India, with major shifts as emerging markets like Indonesia, Brazil, and Mexico rise significantly, though Singapore and Luxembourg may lead in GDP per capita (average wealth per person).
Digital currency represents a potential move from traditional money to a digitally native financial ecosystem. CBDCs (Central Bank Digital Currencies) are gaining traction as governments and central banks explore more efficient and traceable financial systems.
The limited availability of cash in Sweden has caused difficulties for smaller boutiques, shops, and convenience stores, which depend on cash, as they can no longer deposit their daily takings or obtain any change. Non-profit organisations, which are very common in Sweden, have also experienced an outsized impact.
Living without money offers freedom from financial stress and consumerism, but it also comes with significant challenges—especially when thinking about the need to plan for the future.
A standard cassette might hold up to 2,200 banknotes, while a larger, high-capacity version could accommodate up to 4,000 banknotes. Consequently, the maximum capacity of an ATM can vary widely based on these configurations.
