Will cash be obsolete in 10 years?

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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.

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Written by ameliath


Total Comments: 47
  1. 0

    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.

  2. 0

    doesn’t Greece already have a cashless society ???
    ( that might come back to bite me ! )

  3. 0

    biblical prophecy. and then at some stage we wont be able to buy and sell

  4. 0

    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

    • 0

      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.

  5. 0

    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?

    • 0

      Sorry, I don’t understand your comments. “peoples passion”, “store charts” etc. Please explain…..

    • 0

      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.

  6. 0

    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.

  7. 0

    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…..

  8. 0

    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…!!!

    • 0

      I think it is already to late to worry about what big brother knows about you and what you do as he already does!!!

    • 0

      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

  9. 0

    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!

  10. 0

    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!)

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