Digital Payments Overtake Cash in Global Transaction Volume for the First Time

For the first time in history, digital payments have surpassed cash transactions in terms of global transaction volume, accounting for over 51% of total payment transactions, according to data from specialized reports in the international payments sector.

This shift is attributed to a combination of factors, chief among them the widespread proliferation of smartphones and instant payment services in emerging economies, with digital payment usage rates surging remarkably in countries such as India, Brazil, and Nigeria in recent years.

Payment sector analysts explained that the Arab region is also witnessing a boom in this sector, particularly in the Gulf states where the usage rates of digital wallets and contactless payments are high, while Egypt, Morocco, and Algeria continue to take steps toward less cash-dependent societies.

Financial experts believe that this shift forces traditional financial institutions to accelerate the modernization of their digital infrastructure, noting that payment companies like Visa, Mastercard, and PayPal are now competing with local digital wallets capable of offering faster and cheaper services.

What do these terms mean?

Digital Payments: Any financial transaction conducted electronically without using paper cash, including payment cards, banking applications, digital wallets, and instant online transfers.

Contactless Payment: A technology that enables payment completion simply by holding the card or phone near a point-of-sale device without needing to enter a PIN, relying on NFC technology for short-range wireless communication.

Digital Wallet: A smartphone application that stores your bank card information and enables payment without them, such as Apple Pay, Google Pay, STC Pay in the Gulf, and Fawry in Egypt.