For years, Georgia has been on steady journey toward a more digital economy. Contactless cards, mobile wallets, and online payments are now part of everyday life for many. Yet, cash is far from disappearing.
Latest figures from the National Bank of Georgia show an interesting paradox: while the number of card payments continues to rise, the value of transactions still leans heavily toward cash withdrawals. So, it’s fair to ask:
Does Cash Still Rule in Georgia?
H1 2025:
90.71% of card transactions by number in Georgia are payments – a share that has been steadily rising over recent years (H1 2022 – 83.66%, 2023 – 86.53%, H1 2024 – 89.03%). Yet,
53.57% of card transactions by volume are still cash withdrawals. While this share has been declining (H1 2022 – 64.82%, 2023 – 62.00%, H1 2024 – 58.61%), the pace of change remains relatively slow.
People are using cards more often than ever, but when it comes to large sums, many still prefer cash. The rise in payment counts shows, that cards are winning in everyday spending, but the volume data reveals the deep cultural and practical hold of physical currency.
Card Brand Breakdown (H1 2025):
by Volume: Visa → 43.46% payments / 56.54% cash, Mastercard → 47.39% payments / 52.61% cash, Amex → 47.34% payments / 52.66% cash.
by Number (H1 2025): Visa → 89.41% payments / 10.59% cash, Mastercard → 90.79% payments / 9.21% cash, Amex → 92.92% payments / 7.08% cash.
Across all brands, the transaction count is overwhelmingly payments, but transaction value still skews toward cash. This gap highlights that while digital payments are common for groceries, restaurants, and small purchases, larger withdrawals remain cash-first.
What Needs to Change?
Several structural and behavioral factors continue to tip the balance toward cash in Georgia, despite rising adoption of digital payments by number of transactions.
- Lack of trust in digital channels: For many consumers, cash still feels safer and more tangible than swiping a card or using a phone. Concerns about fraud, hidden charges, and the complexity of reversing a payment hold back usage. Addressing these perceptions requires more than just marketing. It means strengthening consumer protections, introducing clear and fast dispute resolution processes, and visibly reducing fraud through better authentication and monitoring systems.
- Limited digital literacy: While younger and urban populations are increasingly fluent in using cards and mobile wallets, gaps remain among older generations and rural communities. Without targeted education programs, for example, community workshops, mobile training units, and simplified app interfaces, many potential users will remain outside the digital payment’s ecosystem.
- Infrastructure gaps: Major cities like Tbilisi and Batumi enjoy strong card acceptance and reliable network connections, but smaller towns and rural areas still face patchy coverage. This creates a practical barrier for both consumers and merchants. Expanding POS terminal availability, ensuring mobile internet reliability, and supporting offline transaction capabilities are essential steps.
- High merchant service fees: Merchants often see card payments as an expensive luxury. Merchant service fees, interchange rates, and processing costs can significantly eat into margins, especially for low-value transactions. These costs often discourage merchants from investing in or promoting cashless payment options, perpetuating cash dominance. To address this barrier, policymakers and payment ecosystem stakeholders should consider reviewing current fee structures with a focus on inclusivity for small merchants. Introducing tiered or capped fees tailored to the size and transaction volume of businesses could alleviate financial burdens. Additionally, offering subsidies, grants, or fee waivers for onboarding small merchants can significantly improve their willingness to accept digital payments.
Moving away from a cash-dependent economy isn’t simply about having the technology in place. It’s about trust, education, affordability, and coordinated action across the public and private sectors.
Author: Mariam Gogia, Researcher & Data Analyst: Lika Tigishvili