Researchers at Mongol Bank have conducted a sample survey on cash usage, finding that non-cash payments account for 71 percent of all transactions in the country, significantly higher than the international average of 46 percent.
According to researchers Ts.Tserendavaa and D.Zolboo, non-cash payments are more common in rural areas than in urban areas. This trend is mainly linked to the challenges of storing and transporting cash in remote areas.
The survey found that 97 percent of non-cash transactions are conducted through banking applications. While digital payments provide greater convenience and save time, researchers noted that they may create challenges for elderly citizens and people without bank accounts, potentially leaving some groups behind in the transition toward digital finance.
Nearly 98 percent of adults in the nation have bank accounts, a figure that exceeds the international average and supports the widespread adoption of digital payment methods. The study also showed that cash continues to play an important role in small-value daily transactions. Although 28 percent of citizens reported that they do not carry cash at all, those who do typically begin the day with approximately 10,000 MNT in cash, withdraw an additional nearly 20,000 MNT from ATMs or kiosks, spend around 16,000 MNT in cash during the day, and have approximately 14,000 MNT remaining by the end of the day.
On average, cash is used for nearly 27 percent of all payments and accounts for approximately 18 percent of total payment value. Cash usage remains relatively high among pensioners and self-employed individuals. However, the large number of citizens who rarely or never use cash indicates that cash is increasingly concentrated in low-value transactions.
The survey also found that 84 percent of businesses accept cash payments, with acceptance largely influenced by consumer behavior rather than business preference. Among businesses that keep cash in their tills, the median cash balance is approximately 500,000 MNT, while less than 25 percent of sales revenue is received in cash. In terms of banknote circulation, 20,000 MNT, 10,000 MNT and 5,000 MNT denominations are the most commonly used among both citizens and businesses, while one MNT and five MNT coins are rarely used.
The bank noted that the findings will support future planning of currency structures, banknote policies, and cash infrastructure as Mongolia continues to operate with both cash and digital payment systems. Meanwhile, 16 percent of surveyed traders reported that they neither use nor accept cash payments. Under the current legislation, the national currency, the tugrug, is a legal means of payment. However, some insurance companies, vehicle dealerships and public transportation providers reportedly require customers to pay only by card or bank transfer, which researchers noted may conflict with existing regulations.
