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Less Cash Society is an innovation proposed by Bank Indonesia in promoting a new payment system that is secure, efficient, and smooth in financial transactions among people; as well as an efforts to solve problems arising from the use of cash such as increasing money supply which leads to inflation and costly materials to print cash. This study used descriptive qualitative method; using data collection techniques such as observation, interview, and documentation. This study was conducted in the village of Tanggulturus, Besuki district, Tulungagung regency. The results showed that: 1) The implementation of Less Cash Society in Tanggulturus was low and ineffective due to some challenges appeared, 2) Challenges faced by the villagers in the application of Less Cash Society are old-fashioned by way of thinking, lack of information, fear of the risks of use, low quality of human resources, costly administration, and the lack of supporting facilities, 3) The result of applying Less Cash Society has proved to be effective in the payment system with indicator such as safety, efficiency, and expansion. Key Words: Less Cash Society, Payment System, Effectiveness.