OECD Highlights Need to Balance Digital Payments and Access to Cash

A new OECD paper highlights the importance of balancing digital innovation with the enduring need for cash. By adopting comprehensive policies and initiatives, governments can ensure that all segments of society have access to reliable and secure payment methods, fostering financial inclusion and stability in the digital age.

The paper – ‘Safeguarding Consumers’ Access to Cash in the Digital Economy’ – delves into the complex interplay between the rapid digitalisation of payment systems and the enduring importance of cash ¹. As societies worldwide increasingly adopt digital payments, the paper explores the potential risks and unintended consequences of this shift.

The digitalisation of payments

The digitalisation of payment systems has been driven by several factors, including cost efficiency, the COVID-19 pandemic, and efforts to combat illegal transactions. Digital payments offer benefits, such as increased convenience, broader access to financial services, and the potential for financial inclusion, especially in developing markets. Two-thirds of adults worldwide reported using digital payments in 2022, a significant increase from 44% in 2014.