While digital wallets have become the preferred method, traditional payment options like cash and cards are still usable in some situations. It's important to note that cash is becoming less common, and using foreign cards can incur high fees.
China is one of the top countries for using cashless payment systems, but penetration is not 100 percent. Elderly Chinese still often prefer to pay with cash and some struggle with using mobile payments.
Sweden, the first European country to introduce banknotes in 1661, became the world's first cashless society on 24 March 2023. Finland and the UK are top–ranked to become cashless societies as well. Poland, on the other hand, has scrapped plans to limit cash payments to ensure freedom of choice.
It's illegal in China to reject cash for purchases, and the central government's crackdown has intensified in the last several years. Regulators have been fining companies such as car dealerships that refuse cash, while state media promotes the paper bill as the "most basic instrument of payment."
China is moving toward a cashless society
According to the article's forecast, around 60 percent of China's 1.3 billion population will have made a purchase via mobile payment by 2023. As the trend continues, China may soon become a cashless economy, where digital payment methods totally replace cash.
The People's Bank of China has fined businesses—including KFC and state-owned entities—for refusing to accept cash following a recent drive to support payment choice and encourage tourism and foreign investment.
The US is moving toward cashless payments, with a substantial increase in the use of mobile wallet apps and contactless cards. A report from the Federal Reserve Bank of San Francisco found that payments made using cash accounted for just 18% of all US payments in 2022.
Sweden. Although it was the first country to issue banknotes, Sweden is the most cashless society in the world today, with just 32 ATMs in operation per 100,000 people, and with more than 98% of its citizens own a debit/credit card.
There are advantages to a cashless society; for example the People's Bank of China has noted that digital currency would help reduce money laundering and corruption as digital money is traceable, unlike cash.
There are several ways to pay in China: cash, bank card and mobile payment. A few years ago, mobile payment via WeChat Pay or Alipay replaced cash as the most popular payment method throughout the country.
Japan, perhaps, is on a steady path towards a more cashless society. PayPay, one of the most common QR code payment services in Japan, reported surpassing 50 million users in 2022, indicating the increasing adoption of digital payment solutions among Japanese consumers.
Only 13 per cent report having gone completely cashless. Despite more than half of Canadians (55 per cent) who say they have no desire to go cashless, 49 per cent think it is likely that Canadian stores will go completely cashless in the next 10 years compared to 31 per cent who think it is unlikely.
Cash. In major cities like Beijing, Xi'an, and Shanghai, you'll find that cash is accepted, and most hotels, restaurants, and the shopping places/factories included in your travel itinerary also accept cash.
If you're paying for plane tickets and hotels ahead of time, you can use dollars for your travel preparations. Once you're on Chinese soil, you'll encounter some merchants that accept US dollars as payment, but it's not common. Be sure to ask the merchant ahead of time whether it's an option.
It is illegal in China to reject cash payments, no matter what the preferences of merchants are.
Sweden ranks high in mobile and contactless payments, and some reports suggest physical cash could vanish from its economy as early as 2024. While each country measures cashlessness differently, Sweden is regarded as the closest to achieving a fully cashless society.
Sudan and Bir Tawil
And as for Bir Tawil – of course they don't have any ATMs, but there are some money receiving facilities in Bir Tawil town as we christened it.
I think we are really not yet close to going completely cashless,” he says. This comes as the Federal Government announced that it will make it compulsory for businesses to accept payments in cash, particularly for “essential items” such as groceries and fuel.
Inflation Is Eating Away at Your Funds
According to the Bureau of Labor Statistics, the average rate of inflation from April 2023 to April 2024 was 3.4%. If you've been keeping your money in a savings account with a lower yield than the rate of inflation, you should switch over to a higher-yield account.
The concept of a cashless society has been around for decades. But with 84% of payments in the US being made digitally in 2025 according to Clearly Payments, research suggests that the transition from physical currency could take place sooner than we once thought.
Is the US Going to Digital Dollar? As of June 2024, the US Federal Reserve has not decided to transition to a CBDC or supplement its existing monetary system with one. It is researching the effects a CBDC would have on the dollar, the US, and the global economy.
While digital payments are the norm in China, traditional methods like cash and cards are still accepted.
KFC was not bought by the Chinese. KFC and Pizza Hut (and a couple of other brands not yet in China) are owned by Yum!, a US corporation. Pepsi owned these brands and spun them off about 20 years ago.
Passengers carrying foreign currencies in cash worth more than $5,000USD and intending to take the currencies out of China in the future shall fill out two declaration forms. After being endorsed by Customs, one copy of the declaration forms will be returned to the passengers for future use when leaving China.