Could Australia go cashless in just three years? Here's what a finance expert wants you to know

As we continue to venture deeper into the digital age, it seems like we're moving further away from the physical, and one area where this is notably occurring is in how we handle our good old-fashioned money. The times of counting our notes and loose change may soon be gone entirely, replaced with a swish of a card or the simple click of a button. Yes, it seems that the days of the shiny dollop and the humble five-cent piece could be numbered.


shutterstock_593778029.jpg
Are our days using cash numbered? Image source: Shutterstock.




Celebrated finance expert Sarah Wells has forecasted a concerning prospect - Australia could be on the express route to becoming a full-blown cashless society in as short a time as three years.

According to Wells, such a societal shift isn't purely a sign of technological progress but could, quite tragically, bring about notable hardship, particularly for certain demographic groups. We know that a cashless society won't be all sunshine and roses for everyone.

But who exactly stands to suffer in the crossfire of this economic overhaul, you ask? Well, let's take a look.

Regional Australians are potentially in the firing line, and proof of this already exists in the closure of more than 1,600 bank branches between June 2017 and July 2022, hitting regional communities the hardest. In addition, in the event of emergencies, cash is often the safest and most reliable fallback.


Remember the 2022 floods in Lismore? With electronic payment systems down, it was the tried and true cash that saved the day as five credit unions flew in a helicopter laden withphysical currency to aid locals.

Vulnerable sections of society, such as the elderly, young children, indigenous Australians and even new immigrants, may find themselves at a disadvantage. We published an article on August 1 that explained Australia’s big banks ‘are still committed to cash’ and swear ‘they are not going cashless’. We had 30 comments from our members on that article, who all explained they have had completely different experiences.

Member @bluetang explained, ‘When you need change e.g. coins what teller machine gives you those? What use a credit card for a $2.50 roll? Even Govt. dept. charge a fee for using a card. Up go the prices because banks charge for card use.’


Another member, @NotNats shared, ‘I said it before, and I will say it again the BIG FOUR don't care about their old customers. They are closing branches & ATM services everywhere, so you have to go cashless. I still can't for the life of me understand why they don't all get in bed with other and open MULTI branches in the rural towns of Aus, one branch to service them all kind of thing. Remember, even in this day and age there are many people who cannot use digital applications to access their money due to many different reasons.’

This point made by member @NotNats is extremely true, why can’t we see more multi-branches? It could be a great solution for the banks, and most certainly for our members.


shutterstock_348158087.jpg
Withdrawing cash from an ATM is becoming an extremely costly and challenging task. Image source: Shutterstock.


Member @Ishka28 explained, ‘The figures the banks give on digital users and in-bank users are extremely misleading. Of course, the percent of digital users has increased as the banks have closed branches forcing people to use the internet and bank cards. And as for smart ATMs, they are as difficult to find as a bank. Most of the smart ATMs are actually inside the bank. It is very difficult for someone who doesn't drive anymore to do any banking outside of the internet. And sometimes, there is a need to actually talk to someone at a bank. Then there is the issue of card blockage. The other day I was actually in a bank. The three people in front of me in line were there to get their cards unblocked. This is simply ridiculous. Cards seem to easily get blocked and not so easily get unblocked.’

We couldn’t agree more with member @Ishka28. A few members of the SDC team have had to line up for hours to get their cards unblocked as well.


Respected senior citizens, whilst they too are using less cash, are still its primary users. Wells explained almost one in five Aussies over the age of 65 is classified as a 'high cash user'.

On top of the experience of our members, there is no doubt that cash transactions, as Wells points out, act as a valuable learning experience for children to understand the worth of money and also improve their social skills.

'Giving a child $20 and taking them to a shopping centre, or the movies helps them to learn to budget and helps them to make decisions by thinking more carefully,' Wells advised.

Not to mention, online payments have given rise to a prosperous industry of intermediaries called payment service providers. These payment middlemen make their money by charging small fees on each transaction, a fee that wouldn't exist in a simple cash transaction.

Amid rounds of criticism faced by the cyber world, the Reserve Bank of Australia noted that 'privacy and security concerns with electronic payment methods continued to be the main reason for needing cash,' and we'd be in agreement with them on this one.


Although Wells does believe the shift towards a cashless society is inevitable, she doesn't advocate for such a drastic change to occur at warp speed, calling for a more considerate approach. 'I think we need to stop thinking about ourselves so much and our own convenience and start thinking a bit more about others,' she said wisely.

Key Takeaways
  • Finance expert Sarah Wells predicts Australia could become a cashless society within three years, with particular impact expected for regional areas, emergencies, indigenous Australians, immigrants, the elderly and children.
  • Young people will be particularly affected as they will lose valuable social interactions and financial learning opportunities with the increase of only digital transactions.
  • Wells explained almost one in five Aussies over the age of 65 is classified as a 'high cash user', so a cashless society will significantly impact them.
  • While Wells believes the transition to a cashless society is inevitable, she highlights that hundreds of thousands of Australians will be negatively affected and recommends that the change should be gradual rather than rushed.


So, dear members, while we may be heading towards a cashless society in just a few short years, let's stand by our coins and notes and use them when it still makes sense to do so. While the world may be changing around us, a simple coin or banknote can still hold a lot more value than we might think. What do you think of this article, members? What are your thoughts and opinions on moving to a cashless society? Share your thoughts with us in the comment section below.
 
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As we continue to venture deeper into the digital age, it seems like we're moving further away from the physical, and one area where this is notably occurring is in how we handle our good old-fashioned money. The times of counting our notes and loose change may soon be gone entirely, replaced with a swish of a card or the simple click of a button. Yes, it seems that the days of the shiny dollop and the humble five-cent piece could be numbered.


View attachment 28426
Are our days using cash numbered? Image source: Shutterstock.




Celebrated finance expert Sarah Wells has forecasted a concerning prospect - Australia could be on the express route to becoming a full-blown cashless society in as short a time as three years.

According to Wells, such a societal shift isn't purely a sign of technological progress but could, quite tragically, bring about notable hardship, particularly for certain demographic groups. We know that a cashless society won't be all sunshine and roses for everyone.

But who exactly stands to suffer in the crossfire of this economic overhaul, you ask? Well, let's take a look.

Regional Australians are potentially in the firing line, and proof of this already exists in the closure of more than 1,600 bank branches between June 2017 and July 2022, hitting regional communities the hardest. In addition, in the event of emergencies, cash is often the safest and most reliable fallback.


Remember the 2022 floods in Lismore? With electronic payment systems down, it was the tried and true cash that saved the day as five credit unions flew in a helicopter laden withphysical currency to aid locals.

Vulnerable sections of society, such as the elderly, young children, indigenous Australians and even new immigrants, may find themselves at a disadvantage. We published an article on August 1 that explained Australia’s big banks ‘are still committed to cash’ and swear ‘they are not going cashless’. We had 30 comments from our members on that article, who all explained they have had completely different experiences.

Member @bluetang explained, ‘When you need change e.g. coins what teller machine gives you those? What use a credit card for a $2.50 roll? Even Govt. dept. charge a fee for using a card. Up go the prices because banks charge for card use.’


Another member, @NotNats shared, ‘I said it before, and I will say it again the BIG FOUR don't care about their old customers. They are closing branches & ATM services everywhere, so you have to go cashless. I still can't for the life of me understand why they don't all get in bed with other and open MULTI branches in the rural towns of Aus, one branch to service them all kind of thing. Remember, even in this day and age there are many people who cannot use digital applications to access their money due to many different reasons.’

This point made by member @NotNats is extremely true, why can’t we see more multi-branches? It could be a great solution for the banks, and most certainly for our members.


View attachment 28427
Withdrawing cash from an ATM is becoming an extremely costly and challenging task. Image source: Shutterstock.


Member @Ishka28 explained, ‘The figures the banks give on digital users and in-bank users are extremely misleading. Of course, the percent of digital users has increased as the banks have closed branches forcing people to use the internet and bank cards. And as for smart ATMs, they are as difficult to find as a bank. Most of the smart ATMs are actually inside the bank. It is very difficult for someone who doesn't drive anymore to do any banking outside of the internet. And sometimes, there is a need to actually talk to someone at a bank. Then there is the issue of card blockage. The other day I was actually in a bank. The three people in front of me in line were there to get their cards unblocked. This is simply ridiculous. Cards seem to easily get blocked and not so easily get unblocked.’

We couldn’t agree more with member @Ishka28. A few members of the SDC team have had to line up for hours to get their cards unblocked as well.


Respected senior citizens, whilst they too are using less cash, are still its primary users. Wells explained almost one in five Aussies over the age of 65 is classified as a 'high cash user'.

On top of the experience of our members, there is no doubt that cash transactions, as Wells points out, act as a valuable learning experience for children to understand the worth of money and also improve their social skills.

'Giving a child $20 and taking them to a shopping centre, or the movies helps them to learn to budget and helps them to make decisions by thinking more carefully,' Wells advised.

Not to mention, online payments have given rise to a prosperous industry of intermediaries called payment service providers. These payment middlemen make their money by charging small fees on each transaction, a fee that wouldn't exist in a simple cash transaction.

Amid rounds of criticism faced by the cyber world, the Reserve Bank of Australia noted that 'privacy and security concerns with electronic payment methods continued to be the main reason for needing cash,' and we'd be in agreement with them on this one.


Although Wells does believe the shift towards a cashless society is inevitable, she doesn't advocate for such a drastic change to occur at warp speed, calling for a more considerate approach. 'I think we need to stop thinking about ourselves so much and our own convenience and start thinking a bit more about others,' she said wisely.

Key Takeaways

  • Finance expert Sarah Wells predicts Australia could become a cashless society within three years, with particular impact expected for regional areas, emergencies, indigenous Australians, immigrants, the elderly and children.
  • Young people will be particularly affected as they will lose valuable social interactions and financial learning opportunities with the increase of only digital transactions.
  • Wells explained almost one in five Aussies over the age of 65 is classified as a 'high cash user', so a cashless society will significantly impact them.
  • While Wells believes the transition to a cashless society is inevitable, she highlights that hundreds of thousands of Australians will be negatively affected and recommends that the change should be gradual rather than rushed.


So, dear members, while we may be heading towards a cashless society in just a few short years, let's stand by our coins and notes and use them when it still makes sense to do so. While the world may be changing around us, a simple coin or banknote can still hold a lot more value than we might think. What do you think of this article, members? What are your thoughts and opinions on moving to a cashless society? Share your thoughts with us in the comment section below.
It seems to be that the attitude of governments and big banks is fuckem all bar six! we'll use those as pall bearers and then they can go fuck themselves. (Pardon my French)
 
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Apart from controlling everyone all this will do is create more and more cybercriminals. With the huge increase of power failures (they will happen) what will people do to get food? We'll end up like America with all the rioting and looting, crime will increase. Imagine some space junk destroying a couple of telecommunications satellites in the future, can't call NBN to fix that in a day or two, the possibilities are real and very frightening.
 
Apart from controlling everyone all this will do is create more and more cybercriminals. With the huge increase of power failures (they will happen) what will people do to get food? We'll end up like America with all the rioting and looting, crime will increase. Imagine some space junk destroying a couple of telecommunications satellites in the future, can't call NBN to fix that in a day or two, the possibilities are real and very frightening.
This is part of the NEW World takeover by the rich and powerful,even blind Freddy can see what is taking place. As I have said before WAKE UP before it’s too late.
 
I draw out a lump sum of cash each week. I too, don't shop anywhere that is cashless. A restaurant we dined at the other night offered 10% off your bill if you paid cash. How good is that?
The skill of using cash is priceless - very important for our children/grandchildren to learn. I give them cash and ask them to work out how much change they will receive.
Due to so-called 'smart phones' we are already witnessing a non-thinking, dumb society. Let's not make it worse by removing cash...
 
As we continue to venture deeper into the digital age, it seems like we're moving further away from the physical, and one area where this is notably occurring is in how we handle our good old-fashioned money. The times of counting our notes and loose change may soon be gone entirely, replaced with a swish of a card or the simple click of a button. Yes, it seems that the days of the shiny dollop and the humble five-cent piece could be numbered.


View attachment 28426
Are our days using cash numbered? Image source: Shutterstock.




Celebrated finance expert Sarah Wells has forecasted a concerning prospect - Australia could be on the express route to becoming a full-blown cashless society in as short a time as three years.

According to Wells, such a societal shift isn't purely a sign of technological progress but could, quite tragically, bring about notable hardship, particularly for certain demographic groups. We know that a cashless society won't be all sunshine and roses for everyone.

But who exactly stands to suffer in the crossfire of this economic overhaul, you ask? Well, let's take a look.

Regional Australians are potentially in the firing line, and proof of this already exists in the closure of more than 1,600 bank branches between June 2017 and July 2022, hitting regional communities the hardest. In addition, in the event of emergencies, cash is often the safest and most reliable fallback.


Remember the 2022 floods in Lismore? With electronic payment systems down, it was the tried and true cash that saved the day as five credit unions flew in a helicopter laden withphysical currency to aid locals.

Vulnerable sections of society, such as the elderly, young children, indigenous Australians and even new immigrants, may find themselves at a disadvantage. We published an article on August 1 that explained Australia’s big banks ‘are still committed to cash’ and swear ‘they are not going cashless’. We had 30 comments from our members on that article, who all explained they have had completely different experiences.

Member @bluetang explained, ‘When you need change e.g. coins what teller machine gives you those? What use a credit card for a $2.50 roll? Even Govt. dept. charge a fee for using a card. Up go the prices because banks charge for card use.’


Another member, @NotNats shared, ‘I said it before, and I will say it again the BIG FOUR don't care about their old customers. They are closing branches & ATM services everywhere, so you have to go cashless. I still can't for the life of me understand why they don't all get in bed with other and open MULTI branches in the rural towns of Aus, one branch to service them all kind of thing. Remember, even in this day and age there are many people who cannot use digital applications to access their money due to many different reasons.’

This point made by member @NotNats is extremely true, why can’t we see more multi-branches? It could be a great solution for the banks, and most certainly for our members.


View attachment 28427
Withdrawing cash from an ATM is becoming an extremely costly and challenging task. Image source: Shutterstock.


Member @Ishka28 explained, ‘The figures the banks give on digital users and in-bank users are extremely misleading. Of course, the percent of digital users has increased as the banks have closed branches forcing people to use the internet and bank cards. And as for smart ATMs, they are as difficult to find as a bank. Most of the smart ATMs are actually inside the bank. It is very difficult for someone who doesn't drive anymore to do any banking outside of the internet. And sometimes, there is a need to actually talk to someone at a bank. Then there is the issue of card blockage. The other day I was actually in a bank. The three people in front of me in line were there to get their cards unblocked. This is simply ridiculous. Cards seem to easily get blocked and not so easily get unblocked.’

We couldn’t agree more with member @Ishka28. A few members of the SDC team have had to line up for hours to get their cards unblocked as well.


Respected senior citizens, whilst they too are using less cash, are still its primary users. Wells explained almost one in five Aussies over the age of 65 is classified as a 'high cash user'.

On top of the experience of our members, there is no doubt that cash transactions, as Wells points out, act as a valuable learning experience for children to understand the worth of money and also improve their social skills.

'Giving a child $20 and taking them to a shopping centre, or the movies helps them to learn to budget and helps them to make decisions by thinking more carefully,' Wells advised.

Not to mention, online payments have given rise to a prosperous industry of intermediaries called payment service providers. These payment middlemen make their money by charging small fees on each transaction, a fee that wouldn't exist in a simple cash transaction.

Amid rounds of criticism faced by the cyber world, the Reserve Bank of Australia noted that 'privacy and security concerns with electronic payment methods continued to be the main reason for needing cash,' and we'd be in agreement with them on this one.


Although Wells does believe the shift towards a cashless society is inevitable, she doesn't advocate for such a drastic change to occur at warp speed, calling for a more considerate approach. 'I think we need to stop thinking about ourselves so much and our own convenience and start thinking a bit more about others,' she said wisely.

Key Takeaways

  • Finance expert Sarah Wells predicts Australia could become a cashless society within three years, with particular impact expected for regional areas, emergencies, indigenous Australians, immigrants, the elderly and children.
  • Young people will be particularly affected as they will lose valuable social interactions and financial learning opportunities with the increase of only digital transactions.
  • Wells explained almost one in five Aussies over the age of 65 is classified as a 'high cash user', so a cashless society will significantly impact them.
  • While Wells believes the transition to a cashless society is inevitable, she highlights that hundreds of thousands of Australians will be negatively affected and recommends that the change should be gradual rather than rushed.


So, dear members, while we may be heading towards a cashless society in just a few short years, let's stand by our coins and notes and use them when it still makes sense to do so. While the world may be changing around us, a simple coin or banknote can still hold a lot more value than we might think. What do you think of this article, members? What are your thoughts and opinions on moving to a cashless society? Share your thoughts with us in the comment section below.
What we think and what we wish for just don't count. They will do what they like as they always do. Our governments, federal, state and territory could legislate to stop this too! Will they, I doubt it.
 
Hubby still keeps cash in the house. He wishes there was still the old bank books where you withdrew and deposit.

When my kids were younger we had a rewards chart where they earned points for doing good things including cleaning their room, dishes, gardening ect .
Then at the end of the week they were paid their money. They could either bank it all or spend half and bank half. They would out it in their money box until School banking day.
One if my daughters also does the same thing, I do wonder how many kids are taught the value if money today 🤔
 
I draw out a lump sum of cash each week. I too, don't shop anywhere that is cashless. A restaurant we dined at the other night offered 10% off your bill if you paid cash. How good is that?
The skill of using cash is priceless - very important for our children/grandchildren to learn. I give them cash and ask them to work out how much change they will receive.
Due to so-called 'smart phones' we are already witnessing a non-thinking, dumb society. Let's not make it worse by removing cash...
@MaccaMan very interesting to hear you got offered 10% off your bill if you paid cash. We were in the Sydney CBD for dinner the other night (we rarely go out in the CBD as it is expensive) and we brought cash to avoid any card fees. Instead, when we brought out the cash they told us we would have to pay a fee if we were paying with cash because they didn't take cash?! I was blown away. Unsure how you can charge a fee if the cash just gets deposited to the restaurants bank for free? Absolutely bizarre! I want to see more restaurants giving 10% off if you pay cash! That's fantastic!
 
As we continue to venture deeper into the digital age, it seems like we're moving further away from the physical, and one area where this is notably occurring is in how we handle our good old-fashioned money. The times of counting our notes and loose change may soon be gone entirely, replaced with a swish of a card or the simple click of a button. Yes, it seems that the days of the shiny dollop and the humble five-cent piece could be numbered.


View attachment 28426
Are our days using cash numbered? Image source: Shutterstock.




Celebrated finance expert Sarah Wells has forecasted a concerning prospect - Australia could be on the express route to becoming a full-blown cashless society in as short a time as three years.

According to Wells, such a societal shift isn't purely a sign of technological progress but could, quite tragically, bring about notable hardship, particularly for certain demographic groups. We know that a cashless society won't be all sunshine and roses for everyone.

But who exactly stands to suffer in the crossfire of this economic overhaul, you ask? Well, let's take a look.

Regional Australians are potentially in the firing line, and proof of this already exists in the closure of more than 1,600 bank branches between June 2017 and July 2022, hitting regional communities the hardest. In addition, in the event of emergencies, cash is often the safest and most reliable fallback.


Remember the 2022 floods in Lismore? With electronic payment systems down, it was the tried and true cash that saved the day as five credit unions flew in a helicopter laden withphysical currency to aid locals.

Vulnerable sections of society, such as the elderly, young children, indigenous Australians and even new immigrants, may find themselves at a disadvantage. We published an article on August 1 that explained Australia’s big banks ‘are still committed to cash’ and swear ‘they are not going cashless’. We had 30 comments from our members on that article, who all explained they have had completely different experiences.

Member @bluetang explained, ‘When you need change e.g. coins what teller machine gives you those? What use a credit card for a $2.50 roll? Even Govt. dept. charge a fee for using a card. Up go the prices because banks charge for card use.’


Another member, @NotNats shared, ‘I said it before, and I will say it again the BIG FOUR don't care about their old customers. They are closing branches & ATM services everywhere, so you have to go cashless. I still can't for the life of me understand why they don't all get in bed with other and open MULTI branches in the rural towns of Aus, one branch to service them all kind of thing. Remember, even in this day and age there are many people who cannot use digital applications to access their money due to many different reasons.’

This point made by member @NotNats is extremely true, why can’t we see more multi-branches? It could be a great solution for the banks, and most certainly for our members.


View attachment 28427
Withdrawing cash from an ATM is becoming an extremely costly and challenging task. Image source: Shutterstock.


Member @Ishka28 explained, ‘The figures the banks give on digital users and in-bank users are extremely misleading. Of course, the percent of digital users has increased as the banks have closed branches forcing people to use the internet and bank cards. And as for smart ATMs, they are as difficult to find as a bank. Most of the smart ATMs are actually inside the bank. It is very difficult for someone who doesn't drive anymore to do any banking outside of the internet. And sometimes, there is a need to actually talk to someone at a bank. Then there is the issue of card blockage. The other day I was actually in a bank. The three people in front of me in line were there to get their cards unblocked. This is simply ridiculous. Cards seem to easily get blocked and not so easily get unblocked.’

We couldn’t agree more with member @Ishka28. A few members of the SDC team have had to line up for hours to get their cards unblocked as well.


Respected senior citizens, whilst they too are using less cash, are still its primary users. Wells explained almost one in five Aussies over the age of 65 is classified as a 'high cash user'.

On top of the experience of our members, there is no doubt that cash transactions, as Wells points out, act as a valuable learning experience for children to understand the worth of money and also improve their social skills.

'Giving a child $20 and taking them to a shopping centre, or the movies helps them to learn to budget and helps them to make decisions by thinking more carefully,' Wells advised.

Not to mention, online payments have given rise to a prosperous industry of intermediaries called payment service providers. These payment middlemen make their money by charging small fees on each transaction, a fee that wouldn't exist in a simple cash transaction.

Amid rounds of criticism faced by the cyber world, the Reserve Bank of Australia noted that 'privacy and security concerns with electronic payment methods continued to be the main reason for needing cash,' and we'd be in agreement with them on this one.


Although Wells does believe the shift towards a cashless society is inevitable, she doesn't advocate for such a drastic change to occur at warp speed, calling for a more considerate approach. 'I think we need to stop thinking about ourselves so much and our own convenience and start thinking a bit more about others,' she said wisely.

Key Takeaways

  • Finance expert Sarah Wells predicts Australia could become a cashless society within three years, with particular impact expected for regional areas, emergencies, indigenous Australians, immigrants, the elderly and children.
  • Young people will be particularly affected as they will lose valuable social interactions and financial learning opportunities with the increase of only digital transactions.
  • Wells explained almost one in five Aussies over the age of 65 is classified as a 'high cash user', so a cashless society will significantly impact them.
  • While Wells believes the transition to a cashless society is inevitable, she highlights that hundreds of thousands of Australians will be negatively affected and recommends that the change should be gradual rather than rushed.


So, dear members, while we may be heading towards a cashless society in just a few short years, let's stand by our coins and notes and use them when it still makes sense to do so. While the world may be changing around us, a simple coin or banknote can still hold a lot more value than we might think. What do you think of this article, members? What are your thoughts and opinions on moving to a cashless society? Share your thoughts with us in the comment section below.
What stinks is that what all of us say & no matter how we disagree they will not listen as usual! We are probably our own worst enemies because we take it up the rear every time instead of pushing back! Covid & vaccines is one prime example of people accepting anything dished out by these uncaring mongrel government/politicians! Pension age increases is just another example. Time people stood up for themselves over these things
 
Will this be the end of carboat sales, plant stalls, farmers markets, these activities allowing people to sell their second hand, new goods, craft items cheaply , can only operate on a cash basis.
You can also include street stalls which sell home made cakes, jams etc. to support nursing homes, sporting groups, Flying Doctor, etc. will be impacted negatively if cash is removed from society.
 
Will this be the end of carboat sales, plant stalls, farmers markets, these activities allowing people to sell their second hand, new goods, craft items cheaply , can only operate on a cash basis.
That is exactly what the government wants. They view these as contributing to the black economy and they are missing out on the GST. Make everything electronic and it gives them absolute control over everything we buy and sell 🤬👀🤬
 
Will this be the end of carboat sales, plant stalls, farmers markets, these activities allowing people to sell their second hand, new goods, craft items cheaply , can only operate on a cash basis.
Good point (y)
 
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If more businesses got on board with offering a discount for cash then we would all come out winners. Speaking from experience, the only people who wouldn't agree here are the government and the banks.
 
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Reactions: Observer and Gsr
A point of interest. You can do banking transactions at your local post office. I have had times where I needed to deposit a cheque, and have no local bank branch, so did it at the post office. You can also withdraw cash there.
 
At the moment there are still some shops that will only accept credit/debit cards. I wil not shop at those shops regardless if they are cheaper.
I will not shop if they insist at cash!

I haven't used cash since the pandemic and even before, a $100 withdawal would last me for several months.
 
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Reactions: elaine41
As we continue to venture deeper into the digital age, it seems like we're moving further away from the physical, and one area where this is notably occurring is in how we handle our good old-fashioned money. The times of counting our notes and loose change may soon be gone entirely, replaced with a swish of a card or the simple click of a button. Yes, it seems that the days of the shiny dollop and the humble five-cent piece could be numbered.


View attachment 28426
Are our days using cash numbered? Image source: Shutterstock.




Celebrated finance expert Sarah Wells has forecasted a concerning prospect - Australia could be on the express route to becoming a full-blown cashless society in as short a time as three years.

According to Wells, such a societal shift isn't purely a sign of technological progress but could, quite tragically, bring about notable hardship, particularly for certain demographic groups. We know that a cashless society won't be all sunshine and roses for everyone.

But who exactly stands to suffer in the crossfire of this economic overhaul, you ask? Well, let's take a look.

Regional Australians are potentially in the firing line, and proof of this already exists in the closure of more than 1,600 bank branches between June 2017 and July 2022, hitting regional communities the hardest. In addition, in the event of emergencies, cash is often the safest and most reliable fallback.


Remember the 2022 floods in Lismore? With electronic payment systems down, it was the tried and true cash that saved the day as five credit unions flew in a helicopter laden withphysical currency to aid locals.

Vulnerable sections of society, such as the elderly, young children, indigenous Australians and even new immigrants, may find themselves at a disadvantage. We published an article on August 1 that explained Australia’s big banks ‘are still committed to cash’ and swear ‘they are not going cashless’. We had 30 comments from our members on that article, who all explained they have had completely different experiences.

Member @bluetang explained, ‘When you need change e.g. coins what teller machine gives you those? What use a credit card for a $2.50 roll? Even Govt. dept. charge a fee for using a card. Up go the prices because banks charge for card use.’


Another member, @NotNats shared, ‘I said it before, and I will say it again the BIG FOUR don't care about their old customers. They are closing branches & ATM services everywhere, so you have to go cashless. I still can't for the life of me understand why they don't all get in bed with other and open MULTI branches in the rural towns of Aus, one branch to service them all kind of thing. Remember, even in this day and age there are many people who cannot use digital applications to access their money due to many different reasons.’

This point made by member @NotNats is extremely true, why can’t we see more multi-branches? It could be a great solution for the banks, and most certainly for our members.


View attachment 28427
Withdrawing cash from an ATM is becoming an extremely costly and challenging task. Image source: Shutterstock.


Member @Ishka28 explained, ‘The figures the banks give on digital users and in-bank users are extremely misleading. Of course, the percent of digital users has increased as the banks have closed branches forcing people to use the internet and bank cards. And as for smart ATMs, they are as difficult to find as a bank. Most of the smart ATMs are actually inside the bank. It is very difficult for someone who doesn't drive anymore to do any banking outside of the internet. And sometimes, there is a need to actually talk to someone at a bank. Then there is the issue of card blockage. The other day I was actually in a bank. The three people in front of me in line were there to get their cards unblocked. This is simply ridiculous. Cards seem to easily get blocked and not so easily get unblocked.’

We couldn’t agree more with member @Ishka28. A few members of the SDC team have had to line up for hours to get their cards unblocked as well.


Respected senior citizens, whilst they too are using less cash, are still its primary users. Wells explained almost one in five Aussies over the age of 65 is classified as a 'high cash user'.

On top of the experience of our members, there is no doubt that cash transactions, as Wells points out, act as a valuable learning experience for children to understand the worth of money and also improve their social skills.

'Giving a child $20 and taking them to a shopping centre, or the movies helps them to learn to budget and helps them to make decisions by thinking more carefully,' Wells advised.

Not to mention, online payments have given rise to a prosperous industry of intermediaries called payment service providers. These payment middlemen make their money by charging small fees on each transaction, a fee that wouldn't exist in a simple cash transaction.

Amid rounds of criticism faced by the cyber world, the Reserve Bank of Australia noted that 'privacy and security concerns with electronic payment methods continued to be the main reason for needing cash,' and we'd be in agreement with them on this one.


Although Wells does believe the shift towards a cashless society is inevitable, she doesn't advocate for such a drastic change to occur at warp speed, calling for a more considerate approach. 'I think we need to stop thinking about ourselves so much and our own convenience and start thinking a bit more about others,' she said wisely.

Key Takeaways

  • Finance expert Sarah Wells predicts Australia could become a cashless society within three years, with particular impact expected for regional areas, emergencies, indigenous Australians, immigrants, the elderly and children.
  • Young people will be particularly affected as they will lose valuable social interactions and financial learning opportunities with the increase of only digital transactions.
  • Wells explained almost one in five Aussies over the age of 65 is classified as a 'high cash user', so a cashless society will significantly impact them.
  • While Wells believes the transition to a cashless society is inevitable, she highlights that hundreds of thousands of Australians will be negatively affected and recommends that the change should be gradual rather than rushed.


So, dear members, while we may be heading towards a cashless society in just a few short years, let's stand by our coins and notes and use them when it still makes sense to do so. While the world may be changing around us, a simple coin or banknote can still hold a lot more value than we might think. What do you think of this article, members? What are your thoughts and opinions on moving to a cashless society? Share your thoughts with us in the comment section below.
Forget credit cards extra charges Why businesses allowed to charge extra for using EFTPOS?
 
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Will this be the end of carboat sales, plant stalls, farmers markets, these activities allowing people to sell their second hand, new goods, craft items cheaply , can only operate on a cash basis.
Nope.

You can purchase a small electronic tap and go device at Officeworks which allows you to accept card payments.
 
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Reactions: elaine41 and Caron

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