Will cash be obsolete in 10 years?

Research reveals cash will become obsolete within the next five to 10 years.

Will cash be obsolete in 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:

It’s faster

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.

It’s safer

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.

It’s cheaper

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.





    COMMENTS

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    Paicey58
    30th Jun 2015
    10:44am
    It is inevitable that we will become a cashless society. I personally pay all my bills via the Internet or use bank cards for everything else. It will also stop the cash only retailers that are routing the taxation system by not correctly declaring their earnings. No more hiding cash under the mattress.
    Bonny
    30th Jun 2015
    11:13am
    Time for welfare recipients to get their payments via a Basic card to stop them hiding cash.
    Lecheman
    21st Jun 2016
    1:02pm
    Um Bonny - welfare recipients 'hiding' their money?? Like they get that much to even attempt that approach in the first place!!??
    hmmm
    30th Jun 2015
    11:18am
    doesn't Greece already have a cashless society ???
    ( that might come back to bite me ! )
    Paicey58
    30th Jun 2015
    5:38pm
    Ha ha funny!
    marls
    30th Jun 2015
    11:25am
    biblical prophecy. and then at some stage we wont be able to buy and sell
    PlanB
    21st Jun 2016
    1:13pm
    Yes dead right there marls
    Cookiegirl
    30th Jun 2015
    11:51am
    No I don't think cashless is a good way to go for a variety of reasons. The tap and go has major security problems ( personal experience!) and the thought of thieves and muggers beating people for their PIN rather than just taking the cash and absconding is also a concern. And we like to have our cash. Especially now that greedy banks are once again introducing the Deposits Fee. Think carefully about losing your choices
    Bonny
    30th Jun 2015
    12:33pm
    I complained to my bank about tap and go and they gave me a debit card without it. The bank would not decrease my tap and go limit on my credit card to a $1 so I have manually disabled the tap and go on my credit card. New technology is coming but who knows when.
    Casepac
    30th Jun 2015
    11:55am
    Is it saver? There are cards being scammed in peoples passion, like in their pocket or hand bag? I have Debit Card and credit cards and some store charts extra, do we want a cashless society if it is going to cost us more?
    Bookworm
    30th Jun 2015
    9:00pm
    Sorry, I don't understand your comments. "peoples passion", "store charts" etc. Please explain.....
    Adrianus
    1st Jul 2015
    11:59am
    Bookworm, you are obviously confused by Casepac's accent. It's quite clear that people are scimming cards when passing by. Also some stores are charging as much as a 3% surcharge for using your card. I may add that when you purchase at Harvey Norman and ask for a discount for cash, then pay with plastic you still get the discount.
    PortMacq
    30th Jun 2015
    12:02pm
    It will become a cashless society for a number of reasons other than those that have been outlined, think of this, people working for cash and not paying tax, gone. The illicit drug trade, gone. Thieving peoples possessions for cash, gone. There will be an upside for the honest, hardworking taxpayer. I know there are some security issues with the internet, however with a cashless society it will be much harder to launder cyber money.
    Bonny
    30th Jun 2015
    12:37pm
    Cyber money itself will tomorrow be in lots of different cyber currencies many of which are now unknown or not even thought of. These are the tools of underworld of tomorrow.
    Paicey58
    30th Jun 2015
    5:42pm
    I agree with you PortMacq. Well said.
    Lecheman
    21st Jun 2016
    12:53pm
    Bit coins/currency (?) - wouldn't that fall into the category of cyber currency now?
    Franky
    30th Jun 2015
    12:34pm
    There will be positives and negatives. True, it will be a more open way to transact. No more evading taxes as the cashless way leaves a trail. It is also more convenient to go cashless rather than fumbling around for notes and coins. On the negative side it definitely won't be cheaper - look at how much banks are charging us now for using cards and in the last few years more and more retailers and even govt. departments are passing on the cost to the consumer. We will pay more, don't be fooled! The other concern is losing cards, or cards being cancelled because of some glitch. I had this happen overseas recently and would have been stuck had I not had sufficient money in cash. All the paperwork was sent to my home address with new pins, cards etc.... no-one there to receive it! I always like to have some cash on hand just in case.....
    Bonny
    30th Jun 2015
    12:45pm
    We each carry different cards from different banks when we go away.
    Paicey58
    30th Jun 2015
    5:46pm
    I'm with Bonny. I always carry different cards if overseas to avoid exactly what happened to Franky. Lucky I did as it did happen once to me and I just cancelled the scammed card and used another instead.
    Kali-G
    30th Jun 2015
    2:51pm
    Welcome to George Orwells nightmare!
    Guess what the Government will know everything about us..
    medical, financial, private intimate items, the will know if you take anti depressants, or Viagra or whatever else....
    BUT you will NOT know how they will use that information, or else to whom they can sell that information to, or even worse...!!!
    BEWARE OF BIG BROTHER..........
    Paicey58
    30th Jun 2015
    5:48pm
    I think it is already to late to worry about what big brother knows about you and what you do as he already does!!!
    PlanB
    21st Jun 2016
    1:16pm
    Big Brother is here and has been for many many years -- and it is getting bigger by the day -- they have something BIG in store for us -- Sustainable development -- (Agenda 21 > 30)

    Getting closer every day
    Believer
    30th Jun 2015
    3:31pm
    Cash is all we can rely on! Look at Greece. Besides, what has this generation done for technology? Not quite up to scratch yet. No NBN and with this government it will never be available to everyone. ATM's don't always work. Then they charge! TV are always full of interference! No, never a cashless society! Not everyone can use the new cards and computers! So it will never be a cashless society! I don't trust it! Like the government. Ask the treasurer, he likes to get what he wan'ts from his job!
    Cookiegirl
    30th Jun 2015
    5:12pm
    I think its more sinister with cash being phased out. The banks will have control over your money and the govt will know to the cent what you have. The banks can freeze your assets in the national interest eg a run on the banks. And the govt can retrospectively change entitlements once all your money is in accessible form.
    Fraser said your money would not be safe and advocated for putting it under your bed ( not a safe idea) but we now know why he said it.
    Its your money Ralph and you should be the ultimate controller of it in a cash form. I am now tallying up my piggy bank ( as I have taught my children to do so) and think its a good way to know and control ones finances. Who knows what I will send it on but there will be no trail ( probably chocolates!)

    30th Jun 2015
    8:00pm
    please people if you can't say anything positive or negative, in regard to the subject, with other words, just attack or defend the government of to-day , but can't come up with a decent argument, against or fore, the subject of this discussion, please stay away with your political comments, may it be labor or liberal, the only thing what should be on our minds is the good for our country AUSTRALIA, which is still, in my opinion, the best country in this world, with other words, I may repeat myself, forget who is in power, let us look towards the future, not just of me and you, but the future of our kids and grandchilds, if we have to pay a little more so our kids and grandchildren can have the opportunity to improve their living standards, he, so be it.
    One of the greatest moments in the modern history was by J.F.K. when he said, do not ask what your country can do for you, but what you can do for your country !!!!!
    So let us keep to how can we improve the way this great country AUSTRALIA become greater and not turn it into another Greece, our grand children will be thanking us for our foesight.
    vincent
    30th Jun 2015
    8:39pm
    Cashless society, I need it like a hole in the head.You will be at the mercy of government and financial interests, Get real and have a good think about this. Personally I am not impressed by so called new technology. It is very easy to bring society to a standstill by disabling a computer system. Or have you all forgotten when this happens, a glitch in the system and nobody can get on line, it has happened in the past and it will happen again. With a cashless society there is no back up system CASH. As far as stamping out crime have a think again, they will work around it. Today every time you are using your card this is logged. This information is used and sold on to anyone who is prepared to pay for it. When I think back to the eighties you could buy information for advertising purposes at that time already when the systems were not as sophisticated as they are now. So you could target your efforts to the right people in the right suburbs with the correct disposable income right for your product, rather than wasting your efforts broadcasting your advertising to a wider public at a much higher cost in the hope that you would net a sale.Good luck if you get bamboozled by the spindoctors that will foist this upon you.
    Cookiegirl
    30th Jun 2015
    8:43pm
    The argument put up here for a cashless society seems to be about stopping people get cash payments and the inference is that they are not paying tax. Firstly that's an assumption not fact. Secondly, I will be arranging to have my salary paid in cash to avoid losing money in what I term immoral bank fees ( govt imposed - don't care one hoot whether its from Labor or Libs) we are over taxed as it is.
    The point is our choice to have cash is taken away from us by using emotive reasons ( not logical in the end) I can tell you that I have had my 'tap and pay' process misused three times however the bank was great about it. Will not use it again and as for the Smart Phone, people know that the technology for misuse and theft is already here and it is very sophisticated.
    Lets keep our cash
    Btw this doesn't argue the merits or otherwise of any political group!
    PlanB
    2nd Jul 2015
    7:12am
    We / I / do not want a cashless system, although I do banking over the net and use cards mostly I like to be able to control MY OWN money --if we have a cashless society --if one does not conform then they just turn off the cash. BIG BROTHER is already here and getting BIGGER every dau
    Cookiegirl
    2nd Jul 2015
    9:21am
    Of course with the newly announced deposits tax a person must have money deposited in the bank to ensure that the govt gets that tax. If a person was to insist on cash for their salary, then the tax cannot apply.
    Remember this tax will also apply on any transfers to other accounts like your mortgage account. Its a tax on after tax money and can be a tax on a tax.
    Keep the cash and avoid the tax
    Snow
    6th Jul 2015
    10:37pm
    Sorry I will still use cash and what about the kids at the school canteen. Give them a credit card - I don't think so.
    PlanB
    7th Jul 2015
    6:09am
    Snow there will be NO credit cards there will be an RFD --a chip-- inserted into your hand -- thats the plan --many already have it (fools) because it can also be turned OFF if you don't conform
    Lecheman
    21st Jun 2016
    1:14pm
    PlanB - having any form of microchip, barcode etc system will incur the wrath of a fairly prominent religion, and trust me they will be fanatical on it not occurring.
    That has been a stumbling block for some time now.
    PlanB
    7th Jul 2015
    6:14am
    Also BIG BROTHER already knows where you are every min' and if you or a friend have a smart phone you can even track it yourself --so what the hell is BIG BROTHER able to do,

    5th Feb 2016
    6:02pm
    Cash will never be obsolete. There are just too many implications to having all your finances monitored and logged on record. Some people will always be private about how much they REALLY have.
    PlanB
    6th Feb 2016
    8:40am
    They are working on the cashless society and have been for decades, that is another way they will have even more control as they already have chip in hands etc -- and if a chip can turn on do not forget it can also be turned OFF -- if one does not conform.

    Money--cash --will be made unlawful and useless so will not matter who has what.

    5th Feb 2016
    6:02pm
    Cash will never be obsolete. There are just too many implications to having all your finances monitored and logged on record. Some people will always be private about how much they REALLY have.
    Lecheman
    21st Jun 2016
    1:23pm
    It is a good point the government (and other respective authorities) will have complete control and knowledge - is this an issue, not really unless you are doing unsavory activities.
    As for a complete conversion, I think people will resist the change.
    For example, I like to give money to the homeless, buskers - can you picture these poor folk having hand-held scanners to process your gifts (laughing).
    PlanB
    21st Jun 2016
    1:29pm
    Lechman, sorry but this the
    --ÿou will be OK unless you are doing something wrong -- drives me crazy --
    we are ALL entitled to privacy -- do you have all your blinds and such open IF everyone can see you -- do you leave your private mail for all to read --or you bank books out for all to see --I DON'T and I am doing nothing wrong same thing! --- I want to always have my privacy and I am not doing anything wrong
    PlanB
    21st Jun 2016
    1:32pm
    Also there will be no homeless buskers the powers that be will see to that, they are already making it bloody uncomfortable for them now.

    Already in the USA the homeless have started to "disappear"
    Lecheman
    21st Jun 2016
    1:57pm
    I am beginning to wonder PlanB if you also believe the Royals are in actuality lizard people etc - yet another conspiracy.
    We long ago lost our privacy when we went online globally. That recent fuss year or so ao regarding the metadata should have provided some inkling as to the degree of access the government wants, and already exercised covertly.
    PlanB
    21st Jun 2016
    3:20pm
    Well one thing I am not a Sheeple
    Nan Norma
    9th Sep 2017
    1:26pm
    The only befit of going cashless is to the Government and the banks. The ordinary person will lose control of their money.
    PlanB
    10th Sep 2017
    6:27am
    Yes Nan, thats the very point -- that what they want, they want to know what you are spending every penny on --
    Charlie
    29th Dec 2017
    10:41am
    over my dead body
    PlanB
    29th Dec 2017
    2:38pm
    Don't worry Charlie they can arrange that too


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