As we embrace new technologies, cheques are likely to become obsolete.
Lowe mentioned in his address during the 2019 Australian Payments Network Summit that the introduction of new payment technologies such as Australia's new payments infrastructure the New Payments Platform (NPP) and tap and go and mobile payments and our quick take-up of the tech have led to a change in the way Australians make payments.
Philip Lowe, Reserve Bank of Australia (RBA) governor, said, “We now have greater choice than ever before and payments are faster and more flexible than they used to be. All up, approximately 66 million Australian bank accounts are now able to make and receive NPP payments.”
The take-up of tap and go was also identified by the RBA as a major game changer in payments. Almost 80% of POS are tap and go, and this data is much higher than in most other countries.
Lowe added, "This growth has been made possible by the acquirers rolling out new technology in their terminals and by the willingness of Australians to try something different. There has also been rapid take-up of mobile payments, including through wearable devices."
"Over the past year, the number of cheques written has fallen by another 19% and the value of cheques written has fallen by more than 30%, as the real estate industry has continued to shift to electronic property settlements," he said. "At some point, it will be appropriate to wind up the cheque system, and that point is getting closer."
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