Affordability of cash: From stocktaking to why and how

This paper analyzes the affordability of cash in an international context. After outlining why cash should remain a core component of a diversified payment mix within a resilient and efficient payment system, we discuss methodological challenges associated with measuring the costs of payment instruments and explain why consumers should ultimately be at the center of the analysis. The paper then reviews the existing literature on the costs of payment instruments and subsequently traces the cost structure across the entire cash cycle-from printers and mints to central banks, cash-in-transit companies, commercial banks, ATM operators, and merchants. Finally, we examine the regulatory frameworks, including cash usage limits and reporting requirements, and analyze their implications for cash demand and the sustainability of cash infrastructure. Building on these findings, the paper derives policy implications and practical recommendations for regulators and cash-cycle participants, emphasizing the need to keep cash affordable.