Cashless Payments Increasingly Adopted Across Emerging Markets, Report Reveals

Why It Matters

Accelerated digital payments boost inclusion and lower transaction costs in emerging economies, reshaping growth dynamics worldwide.

Key Takeaways

• EMDEs' cashless transactions per person jumped 21% to 242 annually
• Fast‑payment systems now represent almost 50% of EMDE digital activity
• Credit transfers hold 94% of cashless value in developing markets
• Cashless payments share of GDP rose 3% in EMDEs, steady in AEs

Pulse Analysis

The latest BIS "Red Book" analysis shows that emerging market and developing economies (EMDEs) are outpacing advanced economies in the shift toward cashless payments. While per‑capita digital transactions in advanced economies grew modestly to 579, EMDEs recorded a 21% jump, reaching 242 transactions per person. Credit transfers dominate the value stream, accounting for 94% of cashless volume, and fast‑payment platforms now handle nearly half of all digital transactions in these regions, signaling a structural change in how money moves at the consumer level.

This rapid adoption is driven by mobile‑first fintech solutions that bypass traditional banking infrastructure. Fast‑payment systems, often accessible on basic phones, enable instant peer‑to‑peer transfers, bill payments, and small‑business transactions, fostering greater financial inclusion for millions previously unbanked. The rise in cashless payments as a share of GDP—up 3% in EMDEs—suggests that digital channels are not only expanding usage but also contributing more substantially to economic activity, reducing transaction costs and improving liquidity for both consumers and merchants.

Policymakers and regulators face the dual challenge of supporting this momentum while ensuring system resilience and consumer protection. Investments in interoperable payment rails, cross‑border settlement links, and robust cybersecurity frameworks are essential to sustain growth. At the same time, cash remains a safety net, as withdrawal amounts stay sizable, highlighting the need for a balanced approach that integrates digital innovation with traditional monetary safeguards. Continued monitoring of adoption patterns will guide strategic decisions that can cement inclusive, efficient financial ecosystems worldwide.