Yeah, that's the big problem. They're not ready for this yet and shouldn't be forced to abandon cash. I don't see the need to rush the adoption of a cashless society. As I said, it's a good move by China.
We still have people using cheques and other outdated payment methods. Even the middle aged generations in many modern countries still rely heavily on cash, the older generation almost entirely. That's in countries with long established banking systems and easy access to internet etc. China in many parts is still largely underdeveloped, people don't have access to bank accounts and cash is their only option. It's only right that they are able to spend their money.