Cash is preferred by 57% of people across Asia, says Paypal

June 18, 2018 Share Source

A survey by PayPal published in 2017 reveals that cash remains the preferred mode of payment across Asia, even with digitisation growth.

Despite being a primarily motivated with encouraging digital payments, this PayPal study provides insight into the public's entrenched preference for cash. 

Key findings include:

  • Across Asia, 88% of those surveyed use cash as a mode of payment.
  • When asked which payment method they used most often, 57% answered cash, compared to 12% who said e- or mobile wallets and just 1% who cited contactless payments via mobiles.

Excerpt from PayPal study

The first recorded use of paper money was in the 7th century in China. Centuries later, the presence of cash in everyday life continues throughout the region. Across Asia, 88% of those surveyed use cash as a mode of payment.

Excerpts from CNBC: Mad Money article

Cash still matters, and it won't go away anytime soon, according to the chief technology officer at PayPal.

Cash is still king even as digital payments are set to rise,
" Sri Shivananda PayPal's CTO CNBC Headline

Last year, a study from consulting firm Capgemini and bank BNP Paribas predicted that by 2020, people around the world would make about 726 billion transactions using digital payment technology.

Cash is king

Last August, a PayPal study found cash was still king in Asia, with China being an outlier where majority of the respondents said they preferred using digital payments. The European Central Bank said in November that a majority of people in the Euro area used cash when paying for goods and services in 2016 — especially for small-value items below 15 euros ($17.62). 

Even then, it would not be easy to dislodge cash from society and move solely to digital payments, according to David Ng, a principal at investment firm B Capital Group's Singapore office.

"Cash is going to be around for a bit, especially in many emerging markets,"
" David Ng Principal at investment firm B Capital As quoted by CNBC

But a systematic push from governments and the availability of good digital payment platforms, like WeChat Pay and M-Pesa, might drive more people toward cashless transactions, he said. Even then, "consumers will still choose a hybrid of both," he added.

Read full article here

Download PayPal study here

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Last Updated: June 25, 2018