An Empirical Study of the Factors Influencing GlobaCash and Non-Cash Payment Decisions

Abstract

    Non-cash payment has led to a profound revolution in modern society. As an emerging service, mobile payment is undergoing global adoption, obliging many countries to reorient their payment systems. The international payment market exhibits regional structural imbalance: non-cash payments are developing rapidly in some countries, while cash transactions remain dominant in most others. This paper investigates the determinants of individuals’ choices between cash and non-cash payment methods using the World Bank’s 2017 Global Findex Database, which covers more than 140 economies and over 150,000 respondents. Ordinary Least Squares (OLS) regressions are applied to examine how factors such as distance, cost, lack of documentation, trust, religion, insufficient funds, lack of demand, and family account sharing influence the adoption of non-cash payments. Heterogeneity analysis reveals that low- and middle-income countries face stronger barriers. These findings provide important policy implications for promoting inclusive financial systems, highlighting the need for differentiated strategies tailored to countries’ income levels and social contexts.