It can be observed that there’s a decrease in cash payments in Australia today.
The decline can be accounted for with the new ‘tap-and-go’ technology, the payment method preferred by most Australian shoppers. Sweden, on the other hand, is taking it to the next level with plans to completely cut out cash.
According to the Swedish bank study, roughly 13 percent of payments in the country are made using cash, bringing the Scandinavian nation closer to its aim of becoming the world’s first cashless society by 2023. Most Swedes shoppers are using debit cards in payments, preferring to use a pin to uphold their trust in these technologies.
In Sweden, a finance app called “Swish” is also a main player, while the Reserve Bank of Australia found mobile applications make up a small percentage of the nation’s payments.
Moreover, Professor Richard Holden, An economist at the University of NSW, stated in 2018 that Australia could become cashless by 2020, via a series of changes inclusive of retiring the $100 bill by the end of 2018, & the $50 bill by the end of 2019. Such a move was called by Holden as “the logical extension of an economy that already heavily relies on electronic payments”, but it is still some way off in Australia.
In 2016, it was reported by the Reserve Bank that 37 percent of payments in Australia were made using cash. Cash is more widely used for smaller payments by all age groups, especially for those under $10.
It is the younger generation of Australian shoppers who are preferring different payment methods, including phone apps. So, we still have to travel some distance before completely disregarding notes and coins.
Source: Industry Global News 24
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