Research reveals cash will become obsolete within the next five to 10 years.
Australians rely on ATMs to withdraw more than $11 billion each year. However, with the growing popularity of ‘cardless cash’, new research has revealed that within the next five to 10 years, cash will become obsolete.
Despite most Australians growing up with notes and coins, tap-and-pay smartphone and tablet transactions are increasingly becoming the norm.
The transition of our global economy towards being completely cash-free is a directly result of the growing number of financial transactions being carried out using mobile electronic devices. According to the International Journal of Electronic Business, this rate will continue to grow until the cessation of cash. In Australia there are currently over 50 million payment cards circulated amongst 23 million people. And a significant 82 per cent of Australian payments are already made in non-cash dollars.
While the death of cash could be seen as an unfortunate by-product of technology growing too rapidly, Bjorn Behrendt, General Manger for Mint Payments Limited, describes the evolution as a necessary step that will benefit our lives in the long run. “Many Australians are still very wary of relinquishing cash control. However, what needs to be noted is the various ways this payment evolution will improve our lives”, he says.
According to Mr Behrendt: the benefits of living in a cashless society can be detailed in four key ways:
Contactless card transactions are paving the way forward in an era when time is becoming an increasingly scarce commodity. Digital and card transactions were found to be faster than traditional cash transactions in a recent study conducted by the Reserve Bank of Australia.
With growing technology that relies on the internet and on digital devices, people are becoming more concerned about their security and the safety of their money. However, portable payment systems like the newly launched Mint mPOS, equipped with the latest security components, offer some peace of mind. The device is ideal for small business owners and ensures every payment is fully compliant with Payment Card Industry (PCI), by using certified bank-grade security to ensure transactions are completely safe. This also eliminates the necessity of carrying larger amounts of cash. As of August last year, users were required to have a PIN password for transactions over $100 for additional security.
It’s more convenient
Since many people have their mobile phones with them when they’re out, a wallet accidentally left at home is no longer so problematic. The introduction of Apple Pay in Australia will allow iPhone 6 users to make payments using their phones, although some Australian banks already let customers to withdraw cash this way. The belief behind this concept is that it will reduce waiting times in lines at shops and allow people to carry fewer items around with them.
Each year governments spend hundreds of millions of dollars on printing money and minting coins, and consumers pay for this through taxes. Removing this cost could mean these funds can be spread across sectors that make more of a significant impact on individuals, benefiting your bank account.
The arrival of a cashless society will occur in the not-too-distant future, and whether you view it as an adverse change fraught with complications or a positive shift with endless future potential, it is a testament to how far technology has evolved and the focus with a focus that ensures a more efficient way of living.