Albania remains one of the most cash-dependent economies in the world in 2025, with around 90% of all daily transactions still conducted using physical money. This surprising figure places Albania 4th globally for cash usage, according to a new international report released by Forex.se. The ranking positions Albania alongside some of the least digitalized economies worldwide, raising concerns about financial inclusion, digital readiness, and long-term economic competitiveness.
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| A woman counting a wad of 1000 Lek banknotes at an exchange shop in Tirana. |
Albania Ranks Near the Bottom of Global Digital Payment Adoption
The global report reveals that Ethiopia and Gambia lead the world in cash usage with approximately 95% of all payments conducted with physical currency. Following closely behind is Albania at 90%, placing it among the most cash-reliant countries on Earth. Other economies with similar levels of dependency include Cambodia, Laos, Lebanon, Nepal, and Pakistan, all registering around 90% cash usage.
Meanwhile, Iraq and Iran appear slightly more digitalized, with cash representing 85% of their daily transactions—still high, yet lower than Albania’s rate. This overall cluster of nations shows a pattern: countries with structural challenges in digital infrastructure, institutional trust, and banking penetration tend to rely heavily on cash.
Why Albanians Still Prefer Cash: Key Factors Shaping the Economy
The report highlights several major reasons why Albania remains far behind in digital payment adoption. These factors are deeply tied to the country’s socio-economic landscape, technological development, and cultural habits:
1. Low Banking Inclusion
A notable percentage of Albanian citizens still do not have access to a bank account or use banking services regularly. This reduces the potential user base for digital payments such as cards, online banking apps, and mobile payments.
2. Limited Internet Access in Rural Areas
While urban centers like Tirana, Durrës, and Vlora enjoy stable internet coverage, many rural areas still face inconsistent connectivity. Without reliable internet, digital payment infrastructure cannot expand effectively.
3. Lack of POS Terminals and Digital Infrastructure for Small Businesses
Small and micro-businesses dominate the Albanian economy. Many of them do not possess POS terminals or mobile payment options due to high costs, administrative hurdles, or low perceived demand.
4. Cultural Preference for Cash
For decades, cash has been the traditional and trusted method of payment in Albania. The informal economy and direct person-to-person exchanges reinforce this habit, making digital adoption much slower.
5. Concerns About Online Fraud and Privacy
A portion of the population remains skeptical of banking apps, card payments, and online transactions due to fear of fraud or cybersecurity risks.
These factors collectively limit the potential of Albania’s digital transformation and keep the country deeply reliant on cash—which can hinder transparency, reduce tax revenue, and slow economic modernization.
Global Leaders Are Transitioning to Cashless Societies
While Albania remains near the bottom, some of the world’s most developed economies are moving rapidly toward cashless models. Countries like Sweden (14%), Norway (10%), and South Korea (10%) have nearly eliminated the daily use of cash. Their advanced digital ecosystems, widespread trust in financial institutions, and highly efficient payment systems have created environments where electronic payments are the standard.
Even large economies such as the United States (16%) and the United Kingdom (20%) are following this trend. Their progress is supported by:
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High consumer confidence in digital systems
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Robust online security protections
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Ubiquitous availability of POS terminals
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Government incentives for electronic transactions
Compared to these environments, Albania’s digital infrastructure still has a long road ahead.
What This Means for Albania’s Economic Future
For Albania, remaining a highly cash-dependent economy poses several challenges:
• Slower economic modernization
Without widespread digital payments, Albania risks lagging behind regional competitors in innovation and financial technology.
• Reduced transparency and higher informal activity
Heavy reliance on cash can make tax evasion and undeclared transactions easier, reducing public revenue.
• Difficulty integrating into EU digital standards
As Albania continues its EU integration process, modernizing the financial system is essential.
• Limited opportunities for e-commerce growth
A cash-first culture discourages online shopping and digital entrepreneurship.
However, the situation also presents opportunities. With strategic investment, Albania can rapidly scale digital adoption, following the example of countries that underwent similar transitions within a decade.
Conclusion: Albania Must Accelerate Its Digital Shift
Albania’s ranking as the 4th most cash-dependent country in the world highlights the urgent need for a coordinated national effort—public and private—to expand digital payment infrastructure, increase financial education, and build trust in modern financial systems.
With the right reforms, Albania can shift away from cash dominance and move toward a more transparent, modern, and integrated digital economy.