This study examines the relationship between FinTech-based digital payment systems and users’ readiness for the transition toward a cashless economy in Algeria amid ongoing digital financial transformation. It investigates whether key dimensions of digital payment systems, namely ease of use, security, efficiency and speed, reliability, and acceptance and diffusion, are associated with users’ readiness to adopt less cash-dependent payment practices. The study adopts a quantitative approach based on a structured questionnaire administered to users of digital payment services in Algeria. Data were analyzed using IBM SPSS Statistics 22 for descriptive analysis and SmartPLS 4 for Partial Least Squares Structural Equation Modeling (PLS-SEM), including assessment of the measurement and structural models. The findings reveal a positive and statistically significant relationship between FinTech-based digital payment systems and readiness for the cashless economy transition. The model explains 54.8% of the variance in readiness (R² = 0.548), indicating that FinTech-based digital payment systems account for a substantial proportion of users’ readiness within the surveyed sample. The findings underscore the relevance of usability, security, efficiency, reliability, and acceptance and diffusion in shaping readiness for reduced reliance on cash. The study highlights the need to strengthen digital payment infrastructure, enhance cybersecurity and consumer protection, promote digital financial literacy, and expand payment acceptance networks to support Algeria’s transition toward a more digitally integrated and less cash-dependent payment environment.