Kiwis not ready to go cashless
New Zealand is still nowhere near ready to become a cashless society, a survey released by the Reserve Bank suggests.
The bank has been considering the implications of the dwindling use of cash.
But a survey of more than 3000 people found that while nearly 90 per cent ‘‘preferred’’ to pay for things electronically, three-quarters recalled using cash at least once or twice in the week before they were surveyed.
The same proportion – three-quarters – said they had some cash in their wallet, purse or pocket.
Six per cent of those surveyed had only used cash in that week.
‘‘People who are already digitally, financially or socially excluded would be severely affected if cash was to disappear or be refused today,’’ assistant governor Christian Hawkesby said.
The most common uses of cash were at farmers’ markets and roadside stalls, but a smaller number of people said they valued the privacy or convenience of cash payments, and about a third said they stored cash outside of a bank.
The Ministry of Civil Defence advises people keep some cash in a ‘‘getaway bag’’ in case of a natural disaster.
Shops have no obligation to accept cash and can insist people instead pay electronically, but the Reserve Bank says that in practice people and businesses can’t refuse cash as a way of paying off a debt.
A consultation paper published by the Reserve Bank earlier this month warned that if the demand for cash as a means of payment continued to decline, it might not be profitable for businesses to continue to supply cash to the public, for example through ATMs.
It said its own bank vaults in which it stored cash in Wellington were ‘‘ageing’’ and it would need to reach a decision in the next 12 to 18 months on how to upgrade them.
The Reserve Bank has suggested it should have the power to require banks to provide access to cash, should that become necessary ‘‘to protect those who rely on cash most heavily’’.
The Ministry of Civil Defence advises that people keep some cash in a ‘‘getaway bag’’ in case of a natural disaster.