More and more countries, shops and people are choosing cards, phones and apps over coins and paper bills. This shift brings real benefits, along with a fair share of risks and questions.
If you’ve noticed fewer ATMs or wondered why paying with your phone feels so normal, you’re part of this story. Let’s look at the main drivers, effects and quirks of living without cash.
Digital Payments Are the New Default
Contactless cards, mobile wallets and online banking have made spending much easier. Tapping a card or sending money with an app like Swish in Sweden saves time and hassle.
Many people now expect to pay this way everywhere, from big stores to the corner café. As digital payments catch on, reliance on cash drops, especially in cities.
Sweden Leads the Way with Swish
Sweden stands out as one of the world’s most cashless countries. Swish, a mobile app that lets people send and receive money instantly, is everywhere. In cities like Stockholm, you’ll see signs saying “Cash Not Accepted” even at market stalls.
Churches and charity groups even use Swish QR codes for donations. This speed and convenience encourage others to follow suit, turning cash into a rare sight.
ATM Machines Disappearing from Streets
As cash use falls, fewer people need ATM machines. Banks are removing them, especially in places like Sweden and the UK. Finding an ATM, especially at night or in rural areas, is harder than it used to be.
However, many older people prefer to pay cash. And debt charities saying using cash usually results in spending less – the charity Christians Against Poverty says that spending cash results usually in spending a third less overall, as you are not ‘spending money you don’t have.
Bank Notes Contain Animal Fat
Many people don’t know that modern polymer banknotes, including those in the UK, contain small amounts of animal fat (tallow) to help make them stronger and smoother.
As the move to cashless picks up speed, some benefit from avoiding this issue altogether. Those following vegan or religious diets can avoid handling notes made with animal products, simply by using cards or apps.
The Bank of England also says the tallow is used to prevent static, when used in counting machines. The company that makes the bank notes, now supplies the same animal-fat products to 20 countries abroad.
The new bank notes are also made from polymer (plastic). As if we don’t have enough plastic pollution problems already, creating these means they don’t break down, when they go out of circulation.
And will continue polluting our planet for hundreds of years to come. Another issue when our national bank is obsessed with ‘money’ over planet.
But the stubbornness is not redesigning the new notes (and it’s not a good switch to palm oil, as this would then harm the habitats of orangutans) is leading to financial loss anyway. People in London increasingly are paying without cash.
Faster and Trackable Transactions
Paying by card or app is fast. You skip change and receipts, and records are updated right away. This helps people track spending and cuts down on mistakes.
Businesses save time too, since they don’t need to count cash or make bank runs. Digital payments also leave a clear trail, which helps with budgeting and can reduce the risk of theft.
Security and Fraud Concerns
With every swipe or tap, security is a worry. Digital payments are protected by passwords, PINs and encryption, yet hackers and scams still happen.
Stolen phones, card cloning or phishing tricks can drain accounts quickly. Banks are racing to improve security, but everyone needs to stay alert and protect their data.
The Digital and Social Divide
A cashless society brings freedom for some, but it doesn’t fit everyone. Older people, migrants, and those without bank accounts or smartphones risk being left behind.
Rural areas may have weaker internet, making digital payments slow or impossible. Policymakers and banks need to make sure everyone can pay safely, no matter their situation.
Environmental Impacts
Less cash means fewer coins and notes to produce and transport, which cuts waste and emissions. But you swap some of that savings for new costs: powering servers, making plastic cards, and charging devices.
There’s also talk about the hidden cost of e-waste, as old phones and card readers pile up.
Big Brother and Privacy Fears
Card and app payments leave a digital trail. Shops, banks and even governments can see when and how you spend. Some people welcome this for safety and budgeting, while others worry about surveillance and data misuse.
