Bank Notes and Their Critical Role in Global Inclusion
As the world continues to navigate digital transformation and cashless futures, the reality on the ground is far more complex. For billions of people across developing economies, physical currency is still essential, even if people are now questioning its relevance.
In 2025, the dollarisation of economies is increasing across regions facing inflation, currency devaluation, or political instability. Countries like Zimbabwe, Argentina, and Lebanon increasingly rely on the US dollar for everyday transactions, savings, and cross-border trade. As local currencies lose trust, demand for physical US banknotes rises, especially for high-denomination bills.
This shift places new pressure on the global supply of currency, driving up the need for secure printing, storage, and transport across longer, more complex routes. For logistics providers, it means increased demand for cross-border banknote deliveries, tighter regulatory scrutiny, and the need to adapt quickly to changing geopolitical and economic conditions. As dollarisation continues, secure access to physical currency will remain a critical lifeline in many regions.
While mobile payments and digital wallets dominate conversation in wealthier nations, cash remains the foundation of inclusion, resilience, and trust in regions where digital infrastructure is limited or unreliable. And behind that cash is a highly specialised supply chain.
A shifting global economy
The relationship people have with physical cash varies widely across countries, shaped by infrastructure, income, policy, and culture. While some economies race toward cashless futures, others are holding on to banknotes as a vital tool for resilience and inclusion.
Life in the UK
UK Finance research has shown that 39% of adults live an almost cashless life. As well as predicting that cash payments in the UK will continue to decline, and that by 2031, cash will account for 6% of all payments. This reduction in the usage of cash is also reflected in the planned closure of 23,000 cash machines by 2030.
However, around three million people rely on cash, according to the Financial Conduct Authority. The FCA found that reliance is strongest among those in low-income households (under £15,000 a year), people who are unemployed, and those with low digital access or skills. Being digitally excluded makes someone over four times more likely to depend on cash, while low income or unemployment significantly increases that likelihood too.
Unbanked in the USA
In the United States, digital payment systems like Apple Pay, Venmo, and Zelle have experienced exponential growth; yet, nearly 4.2% of Americans remain unbanked, according to the FDIC, which translates to roughly 5.6 million households.
But even though overall cash use is down, it’s still popular for smaller purchases. The Federal Reserve reports that nearly half (49%) of transactions under $10 are made with cash. In 2021, cash was used for approximately 20% of all transactions. In 2024, reports showed that cash payments represented around 16% of all transactions.
China’s promise to rural and elderly populations
China is often viewed as the global leader in digital payment adoption. Platforms like Alipay and WeChat Pay dominate daily transactions, particularly in urban centres.
Facial-recognition payments are also becoming more common, but not without controversy. In early 2025, the Chinese government introduced new rules ensuring people cannot be forced to use biometric payments without consent and that businesses must provide clear alternatives.
Cash is increasingly uncommon in cities, with QR code payments accepted almost universally. However, the Chinese government has stepped in to ensure inclusion, mandating that businesses cannot refuse cash, a reminder that despite impressive digital integration, physical currency still has a protective role for certain groups, especially the elderly or rural populations.
Technology vs cash in Japan
Despite being a global tech leader, Japan has historically maintained a cash-based culture. Statistics show that over 60% of all payments are made in cash, as it’s considered a more reliable and secure option, without the risk of personal information leakage.
Card use is rising, so the future is uncertain. If you’re travelling to more advanced Japanese cities, like Tokyo or Osaka, lack of cash shouldn’t be too much of an issue. But, the Japanese countryside will continue to be difficult to navigate without cash in your pocket.
Europe’s realisations
Across Europe, attitudes toward cash vary widely. In countries like Sweden and Norway, cash use had previously dropped drastically, the countries are realising life without cash isn’t all it’s cracked up to be. Leaders are now encouraging the use of cash as they prepare for possible future confrontations. Today, just one in 10 purchases are made with cash, with card transactions the most popular form of payment.
In economies such as Germany, Austria, and parts of Eastern Europe, cash is still used regularly and is often seen as a symbol of financial control and stability. The European Central Bank continues to support banknote circulation as a public right, even as it explores the rollout of a digital euro.
The narrative vs. reality: how “cashless” are developing economies?
There’s no doubt that digital payments are growing globally. But claims of cash being obsolete often overlook the lived experience of communities across Africa, parts of Asia, Latin America, and beyond.
In many of these regions, cash accounts for the majority of transactions, especially in rural and informal economies where banking access is sparse. Digital payment networks can be inconsistent, with infrastructure gaps, outages, and high fees creating barriers to adoption.
Millions remain unbanked or underbanked, relying entirely on physical currency for daily life. The truth is that cashless futures are far from universal, and for many, physical currency represents not the past, but a lifeline to participation in the economy.
Why do banknotes matter? Inclusion, access, and resilience
Physical currency provides immediate, universal access to trade. It doesn’t require a smartphone, a reliable network, or formal identification. This makes it the most inclusive means of payment, particularly for the world’s most vulnerable.
More than that, cash offers resilience. In times of crisis, whether natural disaster, political instability, or digital system failure, banknotes keep commerce moving. They offer a trusted, stable means of exchange when other systems break down.
And for small businesses and traders, especially in informal markets, cash reduces dependency on costly or unavailable digital alternatives. It gives individuals control over their earnings and spending, and ensures no one is left behind in the economy.
A symbol of trust
Physical currency exceeds face value. Each note is a contract of trust between governments, central banks, and citizens. Keeping that trust intact means ensuring currency is authentic and secure, from production to the point of use.
In regions where social and economic stability can be fragile, the reliability of physical currency helps anchor confidence in the financial system. It’s why the security of banknotes, in production, storage, transport, and distribution, is so vital.
The logistics challenge – delivering cash securely
The movement of banknotes presents unique operational challenges. Currency needs to be transported securely, often across regions with heightened risk, from conflict zones to areas affected by crime or instability. It requires protection throughout its journey, using tamper-evident packaging, GPS tracking, and secure storage at every stage, all while delivering on time, as shortages can have immediate, destabilising impacts on local economies.
Route planning, local intelligence, and specialist risk management are also essential factors to consider. Every handoff must be traceable, stage compliant with regulations, and all links in the chain strong enough to protect both the cash and the trust it represents.
Ava’s role in supporting central banks and currency partners
At Ava, our global network of trusted local partners gives us the capability to respond quickly to challenges on the ground. Whether it’s navigating sudden border closures, mitigating risks from political unrest, or managing surges in demand for cash, we deliver secure, compliant solutions tailored to the environment.
By protecting the supply and distribution of currency, we help uphold financial inclusion, support economic resilience, and maintain confidence in the system.
The future of cash and secure logistics
The future of payments will be mixed, digital, yes, but also physical, where needed. As long as physical currency plays a role, secure logistics will remain critical to ensuring its availability, authenticity, and trustworthiness.
As conditions change, at Ava, we will continue to always put people at the heart of what we do.
We cover six continents, with regional offices in New York, Miami, Buenos Aires, London, Frankfurt, Dubai, Hong Kong, Perth and Mumbai. Get in touch with your local expert to learn more about why Ava is the home of secure global logistics.
