Cash ‘dead in a decade’

Many Australians think cash is no longer king and prefer to tap and go, writes Sophie Elsworth

A MAJORITY of Australians think we will be cash-free within a decade as more people shy away from carrying notes and coins.

Countries including Sweden, Denmark and Norway are moving at a rapid pace to ditch cash altogether, while others such as China have seen a boom in mobile payments, with 61 per cent annual growth.

Australians haven’t given up on cash just yet, but research released today by Bankwest, which quizzed 1000 Australians, found:

• 53 per cent believe Australia will be cash-free in a decade.

• 37 per cent believe cash is already redundant.

• 64 per cent are annoyed by cash-only shops.

• 28 per cent use a smartphone or wearable technology for everyday purchases.

• 18 per cent only carry cash for a specific reason.

Bankwest chief information officer Andy Weir said consumers were being driven to use easier payment options, such as paying by card, phone or even a smartwatch, and consequently doing away with carrying physical money.

“You are seeing a real explosion in digital customer experiences,” he said. “Rather than rummaging around in their pockets, handbags and wallets and waiting for change, it’s much easier to tap and go with your phone, watch, card or your Halo ring.”

Bankwest rolled out the “tap and go” Halo payment ring in 2018. It allows customers to use it as an alternative way to pay by holding it over a contactless reader. In its first year of use, customers with a Bankwest debit Mastercard and Halo ring used it for 28 per cent of their purchases.

Tribeca Financial chief executive officer Ryan Watson warned tapping with a card or device was “just too easy” and could lead to overspending and lack of financial responsibility.

“Physically handing over cash makes most people think twice about the money they are spending,” he said. “A cashless society is a big red flag for me – it allows money to easily slip through our fingers.” A speech by Reserve Bank of Australia governor Philip Lowe late last year highlighted the surge in plastic payments, away from cash. This included going to the ATM about 40 times per year in 2000 compared with about 25 times now. Australians now make about 500 electronic payments a year, compared with 100 in 2000.

RFi Group’s spokesman, Alan Shields, said there was a mix of consumers sticking solely with cash while others relied entirely on plastic.

“There will always be people in society who try to use cash and there’s a black economy that relies on cash,” he said.

“Regardless of what they want, there are still businesses where you can only use cash.”

Mr Shields said he could envisage a cashless society in Australia but not within the next decade.