Cash is no longer king in Barbados. It has been dethroned by digital payments.
Central Bank of Barbados data shows that this trend was reinforced in 2025 when total electronic fund transfers surged to $20.8 billion, eclipsing the $1.1 billion in banknotes circulating throughout the economy.
Nonetheless, as it prepares to go live with the new national instant payments system BiMPay this week, the monetary authority says cash remains an “important option”.
An analysis of the situation is shared in the Central Bank’s 2025 annual report.
“Barbadians continued to use a mix of payment instruments, with electronic payments gaining prominence alongside physical currency,” it states.
“While cash remained an important option for transactions, households and businesses increasingly relied on digital payment methods to meet day-to-day needs, reflecting changes in consumer preferences, convenience, and technology adoption.”
Digital payments are leading the way, the Central Bank noted, sharing that “electronic payments through clearing and settlement systems continued to grow”.
“The introduction of the Real-Time Processing (RTP) system enhanced the efficiency of the Automated Clearing House (ACH) framework and supported increases in both the volume and value of electronic fund transfers,” the Central Bank explained.
“Total electronic fund transfers rose by 10.4 per cent to $20.8 billion, with RTP transactions accounting for $7.4 billion of this total.”
The Real-Time Gross Settlement (RTGS) system, which is mainly for the processing of large value and time-sensitive payments, “remained a critical component of the payments infrastructure” during the past year.
“Although the total value of RTGS transactions declined by 8.9 per cent to $21.8 billion, transaction volumes increased by 7.8 per cent, indicating a shift toward a higher number of lower value payments among participating institutions,” the Central Bank said.
“Together, these developments signalled continued evolution in Barbados’ payments ecosystem.”
While the Central Bank has introduced digital cheques, it said that cheque usage “continued its gradual decline” last year.
“Cheque payments processed through the ACH recorded decreases in both volume and value, falling by 4.7 per cent and 1.2 per cent, respectively. This trend reflected the ongoing shift toward faster and more convenient electronic payment options,” the institution reported.
The annual report showed that cash is still an important method of payment for consumers. Currency in circulation increased last year, most of it in the form of the new polymer banknotes.
“The bank ensured an adequate and reliable supply of currency in circulation to support economic activity and public confidence,”
the Central Bank said.
“Throughout 2025, the bank monitored demand closely and managed issuance to ensure that households and businesses continued to access cash as needed, even as electronic payment usage expanded.
“Currency in circulation increased during the year, reflecting ongoing transactional demand. The total value of currency in circulation rose by $57.6 million, following an increase of $30.3 million in 2024.
“Banknotes in circulation increased by $54.8 million to $1.1 billion, of which $841.7 million comprised polymer notes. Coins in circulation increased by $2.8 million to $79.9 million.”
The Central Bank added, however, that “despite the increase in nominal currency holdings, cash usage declined relative to economic output”.
It elaborated, stating: “Currency in circulation as a percentage of GDP fell for the fourth consecutive year, declining from 7.8 per cent in 2024 to 7.3 per cent in 2025. This trend reflects continued growth in economic activity alongside gradual shifts in payment behaviour, rather than reduced access to physical currency.
“Through active currency management, the bank balanced public demand with efficiency and stability.
“By ensuring adequate supply while monitoring longer-term usage trends, the bank supported confidence in the currency and maintained the integrity of the cash distribution system within an evolving payments landscape.”
Barbadians are also using their credit cards more.
“Credit card usage expanded during the year, driven primarily by household spending. The value of domestic credit card transactions increased by 11.3 per cent, equivalent to an additional $151.2 million in spending,” according to the report.
“The personal sector accounted for 77.6 per cent of total credit card expenditure. Transactions by households rose by 12.4 per cent, while credit card spending by businesses increased by 7.9 per cent.”
The annual report also highlighted what Central Bank officials called “the polymer success story”, including the durability of the new banknotes and the fact that none of this plastic money was found to be counterfeited in 2025.
“The bank continued to realise the operational and security benefits of transitioning to polymer banknotes,” the Central Bank reported.
“Since the introduction of polymer notes in December 2022, the Bank has strengthened currency durability, reduced replacement frequency, and enhanced security features, delivering measurable efficiencies in currency management.
“Polymer banknotes demonstrated a significantly longer lifespan than their cotton predecessors. Over the three years since the transition, the Bank removed and destroyed 1.5 million unfit polymer notes from circulation.
“By comparison, destruction data from the period covering the 2013 cotton series indicate that the bank destroyed more than six million cotton notes annually.”
The monetary authority also said that “security outcomes validated the decision to adopt polymer notes”.
“During 2025, authorities recorded 29 counterfeit banknotes, none of which were polymer. There have been no recorded instances of counterfeit polymer notes since their introduction,” it stated.
