How Digital Payments Are Reshaping Money Habits in Georgia

Over the past decade, the world has undergone a major shift in how money is used. Cash — which for centuries was the core instrument of economic exchange — is increasingly disappearing from everyday transactions. In Scandinavian countries, its share of payments is already in the single digits; in China, QR code payments are the norm; and in Singapore, even street vendors now often accept only digital payments.

This trend is driven by convenience and a desire for security: digital payments are faster, traceable, and often cheaper. At the same time, it increases dependency on banks, tech platforms, and internet access — shifting the balance of power around who controls money and how it circulates.

Some experts argue that the rise of digital payments is creating a new socioeconomic divide: for those with smartphones, internet, and bank accounts, the system is convenient and efficient. But for others — such as older populations or residents of remote regions — digital inclusion remains a challenge. That’s why several European countries, including Germany and Austria, have legally protected access to cash as a citizen’s right.

In Georgia more than 75% of the adult population holds a bank account — an important foundation for digital inclusion. The transformation is especially visible in card usage patterns. Based on data from the National Bank of Georgia, in 2013, only 18% of cardholders used their cards for direct payments (via POS terminals or online), while 82% mainly withdrew cash from ATMs. By 2023, this balance had shifted: direct payments rose to 42%, and cash withdrawals declined significantly. This reflects a behavioral shift toward digital and contactless payments, driven by improving infrastructure and changing consumer habits.

Despite this progress, cash still dominates in many rural areas, local markets, and small businesses. Social habits, infrastructure limitations, and trust issues continue to slow adoption of digital tools.

Ultimately, the spread of digital payments should not be seen merely as a technological upgrade. It represents a broader social and economic transformation that requires more than just launching new services — it demands genuine inclusion, accessibility, and public trust. Only then can the digital economy become truly inclusive and sustainable.