Why do some markets still prefer cash, and how can your business adapt? 

Digital wallets, instant payments, and open banking are reshaping commerce worldwide. Yet, cash remains king in many regions. From rural Latin America to parts of Southeast Asia and Eastern Europe, millions of consumers still reach for bills instead of cards or apps. Why? And what does this mean for businesses expanding globally?

Let’s unpack the reasons behind the ongoing love for cash – and explore how merchants can bridge the gap between tradition and innovation.

Why cash still dominates in some regions? 

While the shift toward digital payments seems unstoppable, cash continues to hold ground in many markets. Some may say that old habits die hard. However, the persistence of cash reflects a mix of social, economic, and infrastructural factors that digital alternatives haven’t yet overcome. Understanding these reasons is key if you are entering new markets where financial inclusion and trust look very different from what you’re used to.

1. Limited banking access 

According to the World Bank, around 1.4 billion adults worldwide remain unbanked, meaning they have no access to a bank account or digital payment tools. In many developing markets, opening an account still requires physical documents and a long travel to a branch. In addition, people may simply not trust institutions with their money. 

2. Low digital literacy

Even where mobile phones are common, not everyone feels confident using apps for money. Fear of fraud, scams, or hidden fees often drives people toward the “safety” of cash. In regions with weak consumer protection or unstable banking systems, cash feels more reliable and immediate.

3. Cultural preferences

For some consumers, cash is more than a payment method; it’s a mindset. People used to making face-to-face payments often see digital tools as impersonal or complicated. In markets like Japan and Germany, where privacy and financial control are deeply valued, cash remains a fail-safe method and a symbol of stability.

4. Infrastructural gaps

Stable internet and reliable online payment systems aren’t available everywhere. In areas where connectivity is weak or payment systems aren’t fully integrated, online checkout can be slow or fail altogether. That’s why many shoppers prefer to order online but pay in cash at nearby convenience stores or with pre-paid vouchers.

Regions still holding on to cash

In countries like Mexico, the Philippines, or Egypt, large unbanked populations and limited card access mean millions of shoppers rely on hybrid systems – ordering online but paying in cash. These models have become a cornerstone of local e-commerce, and their adoption patterns vary across regions.

Let’s take a closer look at where cash continues to play a major role in online transactions:

• Latin America: In countries like Mexico, Peru, and Colombia, cash vouchers such as OXXO and PagoEfectivo let customers pay in cash for online orders. These methods remain crucial due to low card usage and high unbanked rates.
• Southeast Asia: Cash-on-delivery remains popular in the Philippines, Indonesia, and Vietnam, where limited card penetration and trust issues make offline payments a preferred option. Local chains like Alfamart and Indomaret connect offline cash payments with online checkouts.
• MENA: In markets such as Egypt and Morocco, services like Fawry enable customers to pay for online orders in cash at thousands of local outlets.
• Eastern Europe: In countries such as Romania and Bulgaria, cash on delivery remains the standard for online orders, especially among older shoppers and small-town customers.
• Developed markets: Even in Japan and Germany, cultural preferences for privacy and control keep cash strong. Vouchers, convenience stores and cash-on-delivery remain popular options, especially for smaller purchases. 

How can businesses adapt? 

For merchants expanding into new markets, cash-based methods are the only way to reach millions of potential buyers who shop online but don’t have access to cards or digital wallets. The key is to meet customers where they are while gradually guiding them toward digital methods.

Here’s how your business can make that work:

1. Add local cash-based options at checkout

Don’t limit your online store to cards and wallets. Integrate regional cash solutions such as OXXO (Mexico), PagoEfectivo (Peru), Dragonpay (Philippines), or Fawry (Egypt). These systems let customers order online and pay offline, helping you expand reach.

2. Build confidence in digital payments

Many shoppers avoid online payments because they don’t yet trust them. Be transparent about fees, security, and refund policies. Offer familiar local methods and simple checkouts to make the experience feel safe and predictable.

3. Encourage gradual digital adoption

Small incentives can make a big difference. Reward repeat customers or offer discounts for trying digital payments, while still keeping cash-based options open for those who prefer them.

4. Partner with a payment service provider that knows the market

Choosing a PSP with broad local coverage helps you manage both online and offline payments through a single system. With Payop, you can accept regional cash methods alongside 200+ other local and alternative payments – all within a single contract and integration. 

Cash isn’t going away anytime soon. For millions, it’s still the most trusted and practical way to pay, even online. But with the right strategy and local partnerships, you can make cash acceptance part of your global growth while gently guiding customers toward digital alternatives.