While not everyone may be equipped with mobile payment, even the poorest segments of Western populations have access to bank cards. Some governments are even starting to pay out benefits electronically, Enrique Velasco-Castillo, a lead analyst with Analysys Mason's Digital Economy Strategies programme explained.
"There really isn't issue of excluding a section of the population where banking penetration is so high."
In markets with stable financial systems like the Nordics, there's no reason for people to store cash, Velasco-Castillo said.
Some Swedish shops have already gone cashless, and bus systems in some major cities like Stockholm no longer accept change for fares. London last year made similar moves, pushing commuters to prepaid transit passes or contactless debit cards.
Read MoreSweden is close to becoming a cashless society
The rise of electronic payment could also raise privacy concerns, but Hahn said these pale in comparison to what it would mean for state revenues. Tracking payments would help governments collect taxes and "could do wonders for fighting corruption."
"It makes economic sense, and it's cheaper for everyone to move to all electronic model. Pushing coins and paper through the system very expensive. Money wears out, you carry it back and forth, redistribute it, count it. It's a big cost on the system," Hahn stressed.
The Danish Chamber of Commerce is realistic about how widespread an initial cashless rollout could be, saying that only a proportion of stores will drop cash altogether.
"It's definitely the future but, the future doesn't have to be tomorrow," Hahn said.