Are you planning your next big trip abroad? One of the first items you’d usually check off your to-do list is converting your cash to the local currency. However, you may soon realize you don’t need much cash abroad at all.
As technology advances in the digital payment space, you’ll likely run into cashless communities while traveling. Cashless societies are becoming the new normal, and many countries, like Norway and Sweden, are likely to soon totally eliminate cash as a payment method.
If you’re planning a trip abroad, you’ll need to ensure you have the correct funds to travel in a cashless area. You don’t want to miss out on buying souvenirs, eating at restaurants, and enjoying all your cultural activities. Below is a list of everything you need to know about how to travel cashless overseas, so you can still have the trip of a lifetime.
Why Are Countries Going Cashless?
It’s becoming more common to see signs that read “No Cash Accepted” while traveling abroad. More and more countries are going cashless, meaning that food markets, clothing stores, hotels, and other businesses are forgoing cash as a payment method.
The ongoing pandemic helped usher this era along since contactless payments lower the risk of transferring germs. In fact, in 2020 nearly half of consumers preferred a contactless payment method. As technology advances, digital payments are becoming more secure and commonplace.
Sweden is leading the list of countries going cashless, and will likely eliminate cash by the end of 2023 to only accept digital payments. Cash transactions only accounted for 1% of Sweden’s GDP in 2019, proving that cash has been on a stark decline the past few years.
However, in many areas of the world, not everyone has access to this technology, including some in the U.S. Many individuals are still underbanked or reliant on cash. Plus, the U.S. and other countries have laws that require businesses to accept cash as a form of payment.
So, before you travel to another country or region, do a little online research or talk to a travel agent about what forms of payment are accepted and not accepted.
How to Travel Cashless
As you plan your trip abroad, there are many things you’ll need to prepare for your trip, including having money to spend! Keep reading to learn about all the ways to go cashless to guarantee a smooth and memorable trip.
Carry an international debit card
One of the most convenient ways to travel cashless is to get an international debit card. This card functions just like any other debit card, but many offer rewards and discounts on certain transactions too. Also, if you need cash in a pinch, this card allows you to withdraw money from ATMs abroad.
Get a prepaid travel card
Prepaid travel cards allow you to make purchases abroad without worrying about international transaction fees. Also, these cards are locked into a currency exchange rate, so you don’t have to worry about daily fluctuations. You’ll purchase the card before your trip and load it with funds up to the maximum amount allowed. You can also use it at ATMs, but there may be fees or withdrawal limits.
Carry a travel credit card
Travel credit cards are very helpful if you’re a frequent traveler. They earn points for every dollar spent, and earn extra points attached to specific travel purchases. You can earn points towards flights, hotels, car rentals, and cash rewards. Travel credit cards also do not charge any international transaction fees, so you can use them freely without fees adding up.
Download & use a digital wallet app
There are many advantages of digital wallets, including its popularity worldwide. Since digital wallets have become the new normal across the world, you’ll likely see tap-and-go payment terminals everywhere. You’ll download a digital wallet app—like Apple Pay, Samsung Wallet, or Google Pay—which connects to your bank account, debit, or credit card. Then, just carry your phone and tap and pay at grocery stores, restaurants, and souvenir shops. Be aware though, unless you use a multicurrency digital wallet app or hook up your digital wallet to a credit card that doesn’t charge foreign transaction fees, you may still end up paying for currency conversion.
One added advantage, though, is that you can manage your money directly from your digital wallet app so you can monitor purchases and keep track of your spending more easily throughout your trip. This digital paper trail helps guarantee the funds in your account, in comparison, to cash getting stolen.
Pay with crypto
Cryptocurrencies, although still new, allow travelers to avoid several fees. Instead of dealing with your bank’s currency exchange rate or international fees, most cryptocurrencies don’t require any conversion at all. Crypto is not widely accepted across the world, but it is becoming more popular, so you may see it as a payment option at some modern stores and restaurants in certain areas of the world.
Transfer money ahead of time with Western Union
It doesn’t hurt to keep a little cash on hand while traveling, just in case! If you prefer money in your hand, then you can always send cash ahead of time, so it’s waiting for you in the local currency when you arrive. Through Western Union’s app, you can reliably send a money transfer to over 200 countries. You’ll be notified when your money arrives, and it will be waiting for you to pick it up at the Western Union agent location you choose near your destination.
