Key Points
• After studying the growing push for ‘cashless’ or ‘cash-lite' economies, the Organization for Economic Cooperation and Development (OECD) has found evidence of significant risks for consumers.
• A resilient economy should provide both digital and cash payment options, guaranteeing secure and inclusive access for all consumers, says the OECD.
• Initiatives and policies to counteract negative impacts have been enacted in several countries and can serve as a model for the future, which should include stronger collaboration between public authorities, financial institutions, and service providers like CIT companies to preserve cash accessibility.
Ripple Effects of the Digital Surge
A new report reveals that two-thirds of adults worldwide made or received digital payments in 2022—a dramatic jump from just 44% in2014. But with this shift, a silent crisis looms: waning access to cash, and the risks that come with it, suggests the Organization for Economic Cooperation and Development (OECD) in “Safeguarding consumers’ access to cash in the digital economy” published March 27.
The surge in digital payments has set off a cascade ofchanges, according to the OECD. Notably, the cash infrastructure has seen asignificant contraction, with the number of ATMs per 100,000 adults decliningby 13% between 2020 and 2022.
“Bank branches and ATMs have closed at unprecedented rates,” the International Monetary Fund has observed, which “further impacts the availability of the cash infrastructure, often requiring individuals living in rural areas to travel further distances to withdraw or deposit cash,” concludes the OECD.
This is problematic for many, as cash isn’t just currency—it’s a cherished tool that offers privacy, immediate accessibility, and a safety net during system outages or crises such as climate-related disruptions. Additionally, the dwindling number of cash access points hits vulnerable segments of society the hardest.
Parts of society who are at a higher risk of facing barriers to digital payments due to a preference for cash or lower digital literacy, may be vulnerable to losing access to payment systems. — OECD Report, March 2025
While digital payments promise speed and convenience, they also bring a host of vulnerabilities. Digital systems leave behind an unerasable trail of data that can compromise privacy and security. In contrast, cash offers complete financial anonymity and allows consumers to manage their finances without the fear of data breaches or cyber scams—a crucial safeguard in an era when digital fraud is relentlessly on the rise.
A Growing Dilemma: Who Gets Left Behind?
Any movement towards digital-first payment systems leaves behind a segment of the population that for various reasons depends on cash. Older adults, individuals with limited digital literacy, and those who simply prefer the tangible security of physical money are facing increasing barriers. In a world where financial scams and data breaches are ever-present threats, many consumers find solace in cash’s inherent privacy and reliability.
The widening digital divide has ignited serious concerns over financial exclusion. The risk is that in their rush to adopt digital methods, societies may inadvertently marginalize groups that haven’t or can’t fully embrace these innovations. In balancing attempts to increase convenience with safeguarding the right to accessible payment methods, policymakers are facing one of the key challenges of modern financial systems, according to the OECD report.
Government Action: Policy Plans and Protective Measures
Digital payment systems are growing but so too is recognition of the consequences. Governments around the globe are starting to respond, enacting supervisory powers and implementing legislative safeguards to keep the cash ecosystem alive. New policies and regulatory initiatives—ranging from national cash strategies to mandatory cash acceptance laws—are being rolled out to ensure that the digital revolution does not come at the expense of inclusivity.
These efforts signal a fundamental recognition: while the drive towards digitalization may yield some economic benefits, it must not disenfranchise those who rely on traditional cash systems. The goal, says the OECD, is clear: A balanced approach that fuels innovation while staying true to the principles of financial consumer protection and inclusion.
Striking the Right Balance
The OECD notes that the evolution of payment systems is unfolding differently across the globe, with low- and middle-income countries thinking of digitalization as a lever for boosting economic development and inclusion, and high-income nations grappling with the complexities of an already saturated digital environment and the rapid decline of physical cash access points.
In a world where every transaction is increasingly digital, the challenge for policymakers and industry leaders is not just embracing technology, but doing so while preserving the essential benefits of cash—security, privacy, and accessibility.
This paper highlights the importance of balancing digital growth and access to cash to maintain sustainable and inclusive payment systems. — OECD
