Tap-and-go payments using your phone or smartwatch could soon be the only way you pay for anything as Australia accelerates towards becoming a completely cashless society.

Finance experts predict the country is just three years away from eliminating cash transactions as the government unveils new legislation to regulate digital payments.

However, the transition doesn't come without controversy.

Proponents argue going cashless increases convenience, makes transactions more traceable for security, and reduces banking costs.

But critics counter that it compromises privacy, excludes groups like seniors and other vulnerable groups, and loses the psychological benefits of paying with physical cash.

Australia could go cashless within three years as the government moves to regulate digital wallets. Credit: Pexels.

In Australia, the shift from cash rapidly sped up during the COVID-19 pandemic, when hygiene concerns made people favour contactless tap-and-go payments over exchanging banknotes.

RBA figures show that in 2019, cash was used in 32 per cent of in-person transactions. But by 2021, this plummeted to just 16 per cent of transactions, an enormous drop in only two years.

Meanwhile, mobile wallet usage skyrocketed almost overnight through applications like Apple Pay and Google Pay.

Now, a quarter of non-cash payments happen via mobile wallets.

This is transforming the way Australians pay. A case in point—gone are the days of rummaging through your wallet or purse for the right card. For more and more Aussies, a simple tap of a phone or smartwatch pays for your morning cuppa in seconds.

But consumer advocates caution that convenience comes at a cost. According to finance expert Nicole Pedersen-McKinnon, paying with a card or phone disconnects you from the 'pain' of parting with your money.

'There is a psychological phenomenon called coupling, which means linking your purchases with payment pain,' she explained, adding that this coupling is weaker when money is digitised rather than physical.

'Cash does this as the dollar detriment is immediate and in your face, so to speak.'

This means that ditching cash likely means higher consumer spending, less restraint, and more splurging, which spells trouble for vulnerable groups already struggling with money management.

Another question comes to mind when it comes to 'cashless' purchases: What if your phone runs out of battery while you're out? Or mobile networks crash from a cyber attack? No cash means no backup option.

These concerns arose after the Australian government announced legislation to regulate digital payments for the first time.

The new laws will give the Reserve Bank oversight of technology companies like Apple and Google and their digital wallet systems.

​

According to finance expert Sarah Wells, the laws are the next step towards Australia eliminating cash completely within three years. She said the government’s recent move to tighten the grip on digital cash payments like Google Pay and Apple Pay is the ‘next step towards a cash-starved’ country.

However, Wells warned the government must consider privacy, security and accessibility for all groups in society, not just the tech-savvy.

'We need to make sure we are not compromising the safety, education and experience of minority groups and young minds in our endeavours to legislate contemporary payment platforms,' Wells said.

Human rights groups also fear invasive tracking of all purchases by tech giants, loss of financial anonymity, and exclusion of vulnerable community members without smartphones.

So, while a fully cashless future offers some benefits, the risks are real, too. Imagine the chaos if an outage brought the tap-and-go system crashing down across the country with no cash backup…

Key Takeaways

• According to finance expert Sarah Wells, Australia may become a cashless society within the next three years.
• New draft legislation would grant the Reserve Bank the power to regulate digital wallets like Google Pay and Apple Pay.
• There is a growing shift from cash to card and digital payments within Australia, with only 16 per cent of in-person transactions conducted in cash last year.
• Future changes in the payment landscape will see the Reserve Bank explore the case for new forms of digital currency while ensuring cash remains a viable option.

Perhaps digital payments could be Australia's future. But is it the future we want or need? Members, let us know your thoughts in the comments below!

 

[Veggiepatch]

Good article. DITCH THE DIGITAL!

 

[cheviegirl34]

Tap-and-go payments using your phone or smartwatch could soon be the only way you pay for anything as Australia accelerates towards becoming a completely cashless society.

Finance experts predict the country is just three years away from eliminating cash transactions as the government unveils new legislation to regulate digital payments.

However, the transition doesn't come without controversy.

Proponents argue going cashless increases convenience, makes transactions more traceable for security, and reduces banking costs.

But critics counter that it compromises privacy, excludes groups like seniors and other vulnerable groups, and loses the psychological benefits of paying with physical cash.

View attachment 32039

Australia could go cashless within three years as the government moves to regulate digital wallets. Credit: Pexels.

In Australia, the shift from cash rapidly sped up during the COVID-19 pandemic, when hygiene concerns made people favour contactless tap-and-go payments over exchanging banknotes.

RBA figures show that in 2019, cash was used in 32 per cent of in-person transactions. But by 2021, this plummeted to just 16 per cent of transactions, an enormous drop in only two years.

Meanwhile, mobile wallet usage skyrocketed almost overnight through applications like Apple Pay and Google Pay.

Now, a quarter of non-cash payments happen via mobile wallets.

This is transforming the way Australians pay. A case in point—gone are the days of rummaging through your wallet or purse for the right card. For more and more Aussies, a simple tap of a phone or smartwatch pays for your morning cuppa in seconds.

But consumer advocates caution that convenience comes at a cost. According to finance expert Nicole Pedersen-McKinnon, paying with a card or phone disconnects you from the 'pain' of parting with your money.

'There is a psychological phenomenon called coupling, which means linking your purchases with payment pain,' she explained, adding that this coupling is weaker when money is digitised rather than physical.

'Cash does this as the dollar detriment is immediate and in your face, so to speak.'

This means that ditching cash likely means higher consumer spending, less restraint, and more splurging, which spells trouble for vulnerable groups already struggling with money management.

Another question comes to mind when it comes to 'cashless' purchases: What if your phone runs out of battery while you're out? Or mobile networks crash from a cyber attack? No cash means no backup option.

These concerns arose after the Australian government announced legislation to regulate digital payments for the first time.

The new laws will give the Reserve Bank oversight of technology companies like Apple and Google and their digital wallet systems.



According to finance expert Sarah Wells, the laws are the next step towards Australia eliminating cash completely within three years. She said the government’s recent move to tighten the grip on digital cash payments like Google Pay and Apple Pay is the ‘next step towards a cash-starved’ country.

However, Wells warned the government must consider privacy, security and accessibility for all groups in society, not just the tech-savvy.

'We need to make sure we are not compromising the safety, education and experience of minority groups and young minds in our endeavours to legislate contemporary payment platforms,' Wells said.

Human rights groups also fear invasive tracking of all purchases by tech giants, loss of financial anonymity, and exclusion of vulnerable community members without smartphones.

So, while a fully cashless future offers some benefits, the risks are real, too. Imagine the chaos if an outage brought the tap-and-go system crashing down across the country with no cash backup…

Key Takeaways

• According to finance expert Sarah Wells, Australia may become a cashless society within the next three years.
• New draft legislation would grant the Reserve Bank the power to regulate digital wallets like Google Pay and Apple Pay.
• There is a growing shift from cash to card and digital payments within Australia, with only 16 per cent of in-person transactions conducted in cash last year.
• Future changes in the payment landscape will see the Reserve Bank explore the case for new forms of digital currency while ensuring cash remains a viable option.

Perhaps digital payments could be Australia's future. But is it the future we want or need? Members, let us know your thoughts in the comments below!

It is ridiculous. We know people who do not have a credit card & also do not have a mobile phone. What about Garage Sales? Sunday Markets? Op Shops? It costs money so how will people manage? Also there should not be the $100 limit you can spend on your credit card? Lose your card someone finds it & can go shop to shop spending a $100 each time!!!!!Stupidity!!!

 

[Sheenagh]

By 2026 - dream on, no until this country becomes so so so much better with data protection. Stupidity at its best.

 

[Dija]

Tap-and-go payments using your phone or smartwatch could soon be the only way you pay for anything as Australia accelerates towards becoming a completely cashless society.

Finance experts predict the country is just three years away from eliminating cash transactions as the government unveils new legislation to regulate digital payments.

However, the transition doesn't come without controversy.

Proponents argue going cashless increases convenience, makes transactions more traceable for security, and reduces banking costs.

But critics counter that it compromises privacy, excludes groups like seniors and other vulnerable groups, and loses the psychological benefits of paying with physical cash.

View attachment 32039

Australia could go cashless within three years as the government moves to regulate digital wallets. Credit: Pexels.

In Australia, the shift from cash rapidly sped up during the COVID-19 pandemic, when hygiene concerns made people favour contactless tap-and-go payments over exchanging banknotes.

RBA figures show that in 2019, cash was used in 32 per cent of in-person transactions. But by 2021, this plummeted to just 16 per cent of transactions, an enormous drop in only two years.

Meanwhile, mobile wallet usage skyrocketed almost overnight through applications like Apple Pay and Google Pay.

Now, a quarter of non-cash payments happen via mobile wallets.

This is transforming the way Australians pay. A case in point—gone are the days of rummaging through your wallet or purse for the right card. For more and more Aussies, a simple tap of a phone or smartwatch pays for your morning cuppa in seconds.

But consumer advocates caution that convenience comes at a cost. According to finance expert Nicole Pedersen-McKinnon, paying with a card or phone disconnects you from the 'pain' of parting with your money.

'There is a psychological phenomenon called coupling, which means linking your purchases with payment pain,' she explained, adding that this coupling is weaker when money is digitised rather than physical.

'Cash does this as the dollar detriment is immediate and in your face, so to speak.'

This means that ditching cash likely means higher consumer spending, less restraint, and more splurging, which spells trouble for vulnerable groups already struggling with money management.

Another question comes to mind when it comes to 'cashless' purchases: What if your phone runs out of battery while you're out? Or mobile networks crash from a cyber attack? No cash means no backup option.

These concerns arose after the Australian government announced legislation to regulate digital payments for the first time.

The new laws will give the Reserve Bank oversight of technology companies like Apple and Google and their digital wallet systems.



According to finance expert Sarah Wells, the laws are the next step towards Australia eliminating cash completely within three years. She said the government’s recent move to tighten the grip on digital cash payments like Google Pay and Apple Pay is the ‘next step towards a cash-starved’ country.

However, Wells warned the government must consider privacy, security and accessibility for all groups in society, not just the tech-savvy.

'We need to make sure we are not compromising the safety, education and experience of minority groups and young minds in our endeavours to legislate contemporary payment platforms,' Wells said.

Human rights groups also fear invasive tracking of all purchases by tech giants, loss of financial anonymity, and exclusion of vulnerable community members without smartphones.

So, while a fully cashless future offers some benefits, the risks are real, too. Imagine the chaos if an outage brought the tap-and-go system crashing down across the country with no cash backup…

Key Takeaways

• According to finance expert Sarah Wells, Australia may become a cashless society within the next three years.
• New draft legislation would grant the Reserve Bank the power to regulate digital wallets like Google Pay and Apple Pay.
• There is a growing shift from cash to card and digital payments within Australia, with only 16 per cent of in-person transactions conducted in cash last year.
• Future changes in the payment landscape will see the Reserve Bank explore the case for new forms of digital currency while ensuring cash remains a viable option.

Perhaps digital payments could be Australia's future. But is it the future we want or need? Members, let us know your thoughts in the comments below!

What about us old people ? And the people who loose there jobs because of this.

 

[Januvia1952]

Tap-and-go payments using your phone or smartwatch could soon be the only way you pay for anything as Australia accelerates towards becoming a completely cashless society.

Finance experts predict the country is just three years away from eliminating cash transactions as the government unveils new legislation to regulate digital payments.

However, the transition doesn't come without controversy.

Proponents argue going cashless increases convenience, makes transactions more traceable for security, and reduces banking costs.

But critics counter that it compromises privacy, excludes groups like seniors and other vulnerable groups, and loses the psychological benefits of paying with physical cash.

View attachment 32039

Australia could go cashless within three years as the government moves to regulate digital wallets. Credit: Pexels.

In Australia, the shift from cash rapidly sped up during the COVID-19 pandemic, when hygiene concerns made people favour contactless tap-and-go payments over exchanging banknotes.

RBA figures show that in 2019, cash was used in 32 per cent of in-person transactions. But by 2021, this plummeted to just 16 per cent of transactions, an enormous drop in only two years.

Meanwhile, mobile wallet usage skyrocketed almost overnight through applications like Apple Pay and Google Pay.

Now, a quarter of non-cash payments happen via mobile wallets.

This is transforming the way Australians pay. A case in point—gone are the days of rummaging through your wallet or purse for the right card. For more and more Aussies, a simple tap of a phone or smartwatch pays for your morning cuppa in seconds.

But consumer advocates caution that convenience comes at a cost. According to finance expert Nicole Pedersen-McKinnon, paying with a card or phone disconnects you from the 'pain' of parting with your money.

'There is a psychological phenomenon called coupling, which means linking your purchases with payment pain,' she explained, adding that this coupling is weaker when money is digitised rather than physical.

'Cash does this as the dollar detriment is immediate and in your face, so to speak.'

This means that ditching cash likely means higher consumer spending, less restraint, and more splurging, which spells trouble for vulnerable groups already struggling with money management.

Another question comes to mind when it comes to 'cashless' purchases: What if your phone runs out of battery while you're out? Or mobile networks crash from a cyber attack? No cash means no backup option.

These concerns arose after the Australian government announced legislation to regulate digital payments for the first time.

The new laws will give the Reserve Bank oversight of technology companies like Apple and Google and their digital wallet systems.



According to finance expert Sarah Wells, the laws are the next step towards Australia eliminating cash completely within three years. She said the government’s recent move to tighten the grip on digital cash payments like Google Pay and Apple Pay is the ‘next step towards a cash-starved’ country.

However, Wells warned the government must consider privacy, security and accessibility for all groups in society, not just the tech-savvy.

'We need to make sure we are not compromising the safety, education and experience of minority groups and young minds in our endeavours to legislate contemporary payment platforms,' Wells said.

Human rights groups also fear invasive tracking of all purchases by tech giants, loss of financial anonymity, and exclusion of vulnerable community members without smartphones.

So, while a fully cashless future offers some benefits, the risks are real, too. Imagine the chaos if an outage brought the tap-and-go system crashing down across the country with no cash backup…

Key Takeaways

• According to finance expert Sarah Wells, Australia may become a cashless society within the next three years.
• New draft legislation would grant the Reserve Bank the power to regulate digital wallets like Google Pay and Apple Pay.
• There is a growing shift from cash to card and digital payments within Australia, with only 16 per cent of in-person transactions conducted in cash last year.
• Future changes in the payment landscape will see the Reserve Bank explore the case for new forms of digital currency while ensuring cash remains a viable option.

Perhaps digital payments could be Australia's future. But is it the future we want or need? Members, let us know your thoughts in the comments below!

I was in Drakes, yesterday. An elderly woman couldn’t remember her PIN number. Her community carer paid for her shopping. This isn’t acceptable. Cashless must not happen.

 

[Pink lion]

This is soooo smart.A few years back they had stagecoach robbers then bank robbers train robbers etc, all of these methods of obtaining money illegally however were fraught with difficulty aside from the actual act as the task itself, which was dangerous. Criminals could be identified, and the money marked and used to incriminate the culprits after.

Then we had corporate transactions of fast money moving from location to location at speed, with vast amounts being swiped off the table unnoticed but still traceable unless one hired the very best of accountants.

Then computers were programmed to take incremental amounts of money during transactions in such a way that nobody noticed, and an absolutely brilliant scheme of a cashless society was hatched, where nobody can trace money "as it doesn't exist" except in data retrieval systems that whirrr and whizz and do the money laundering biz, so fast that no human investigative committee could ever assign blame to any particular party corporation country or individual its rationalization is BRILLIANT.
Theft in the modern age has finally reached the stage of no accountability at all. A cashless country may simply acquire a quadrillion for its coffers by data input, with nobody being able to (or even wanting to) qualify how these funds occurred lest their own quadrillion resources instantly dissolve.
Years ago, I asked the question "if gold reserves can be assessed to the ounce from space at a particular location now, why poison our water ways with cyanide used to process it and simply assign a claim to its location?" as leaving it there surely is the same as storing it in the bank? I was laughed at as the idea was assessed as being ridiculous.

And yet here we are at the verge of surrendering all valid evidence of currency and all means of qualifying what underpins or supports global by placing our society into an electronic medium. Ha ha ha this is all while knowing full well that a Carrington event (A massive solar flare) could in an instant remove all forms of electric function from our planet for years...

Hilariously though this is not the main issue. Computers are the medium that the financial lifeblood of our finances flow through and it would take next to nothing for an intelligent cybernetic organism in the not too far distant future, to rationalize that if they simply STOPPED supplying all forms of human currency (except barter of course) then whatever demands cybernetic organisms may place upon human society in the future will most definitely be met.
Until that day eventuates and it surely will once it becomes understood that human life is subject to Cybernetic operation, look out for data analysts suddenly acquiring all manner of currently super expensive gadgets and toys for the girls and boys.

The RISE OF THE BOFFINS and the NERDS this should be a movie! Credos it is a n extremely well thought out way for computer technicians and their political overlords to instantly acquire a stupendous amount of untraceable finance it is brilliant as a non-traceable society rip off and whoever is supporting this should be commended for the audacity of the concept at the very least.

The crime of the millennium, future oligarchs otherwise known previously as computer nerds will marvel at the simplicity of it and fall about laughing at all of the gullible people that assisted and supported it... ha ha ha such an exciting world...

 

[Jennylolo]

of course it dropped. You took away our branches and the bulk of our ATMs. How are we supposed to withdraw cash?

 

[Observer]

Having just read this article, something struck me that didn't need to be and that there was still an alternative.
They talk about cashless and living off cards, like your debit or credit card. And then they go on to say that if power goes down, that cards would be no good for electronic transactions and cash would still be needed.
My thought on this is that the front of the card has not changed compared to the old BankCard days where to make a payment, they would place the card face down and run the roller across it to leave an imprint on the supplied paper form, showing name and card details. Then the cost would be added to the form and you would sign it.
Going back to this method in emergency situations would mean that people could still purchase via card, especially if cash is no longer accepted or alternatively, keep cash happening (something which I personally prefer).

 

[Taniak]

I am not a sheep. Using cash makes me feel in control of my everyday spending.

 

[pgcb8186]

Tap-and-go payments using your phone or smartwatch could soon be the only way you pay for anything as Australia accelerates towards becoming a completely cashless society.

Finance experts predict the country is just three years away from eliminating cash transactions as the government unveils new legislation to regulate digital payments.

However, the transition doesn't come without controversy.

Proponents argue going cashless increases convenience, makes transactions more traceable for security, and reduces banking costs.

But critics counter that it compromises privacy, excludes groups like seniors and other vulnerable groups, and loses the psychological benefits of paying with physical cash.

View attachment 32039

Australia could go cashless within three years as the government moves to regulate digital wallets. Credit: Pexels.

In Australia, the shift from cash rapidly sped up during the COVID-19 pandemic, when hygiene concerns made people favour contactless tap-and-go payments over exchanging banknotes.

RBA figures show that in 2019, cash was used in 32 per cent of in-person transactions. But by 2021, this plummeted to just 16 per cent of transactions, an enormous drop in only two years.

Meanwhile, mobile wallet usage skyrocketed almost overnight through applications like Apple Pay and Google Pay.

Now, a quarter of non-cash payments happen via mobile wallets.

This is transforming the way Australians pay. A case in point—gone are the days of rummaging through your wallet or purse for the right card. For more and more Aussies, a simple tap of a phone or smartwatch pays for your morning cuppa in seconds.

But consumer advocates caution that convenience comes at a cost. According to finance expert Nicole Pedersen-McKinnon, paying with a card or phone disconnects you from the 'pain' of parting with your money.

'There is a psychological phenomenon called coupling, which means linking your purchases with payment pain,' she explained, adding that this coupling is weaker when money is digitised rather than physical.

'Cash does this as the dollar detriment is immediate and in your face, so to speak.'

This means that ditching cash likely means higher consumer spending, less restraint, and more splurging, which spells trouble for vulnerable groups already struggling with money management.

Another question comes to mind when it comes to 'cashless' purchases: What if your phone runs out of battery while you're out? Or mobile networks crash from a cyber attack? No cash means no backup option.

These concerns arose after the Australian government announced legislation to regulate digital payments for the first time.

The new laws will give the Reserve Bank oversight of technology companies like Apple and Google and their digital wallet systems.



According to finance expert Sarah Wells, the laws are the next step towards Australia eliminating cash completely within three years. She said the government’s recent move to tighten the grip on digital cash payments like Google Pay and Apple Pay is the ‘next step towards a cash-starved’ country.

However, Wells warned the government must consider privacy, security and accessibility for all groups in society, not just the tech-savvy.

'We need to make sure we are not compromising the safety, education and experience of minority groups and young minds in our endeavours to legislate contemporary payment platforms,' Wells said.

Human rights groups also fear invasive tracking of all purchases by tech giants, loss of financial anonymity, and exclusion of vulnerable community members without smartphones.

So, while a fully cashless future offers some benefits, the risks are real, too. Imagine the chaos if an outage brought the tap-and-go system crashing down across the country with no cash backup…

Key Takeaways

• According to finance expert Sarah Wells, Australia may become a cashless society within the next three years.
• New draft legislation would grant the Reserve Bank the power to regulate digital wallets like Google Pay and Apple Pay.
• There is a growing shift from cash to card and digital payments within Australia, with only 16 per cent of in-person transactions conducted in cash last year.
• Future changes in the payment landscape will see the Reserve Bank explore the case for new forms of digital currency while ensuring cash remains a viable option.

Perhaps digital payments could be Australia's future. But is it the future we want or need? Members, let us know your thoughts in the comments below!

Scammers would be in seventh heaven!!!!! our country was once a country of choices, variety & diversity... now we are being swayed, directed, told & choices removed so that we all have to follow the rules that "Big Brother" wants. This will just be another way they will watch & control us & our anonymity will be lost.

 

[Observer]

Scammers would be in seventh heaven!!!!! our country was once a country of choices, variety & diversity... now we are being swayed, directed, told & choices removed so that we all have to follow the rules that "Big Brother" wants. This will just be another way they will watch & control us & our anonymity will be lost.

I think of my age and health. In a few years none of the thoughts/ideas/comments on this SDC site will matter anymore. I will be 6' under LOL

 

[Ronloby]

What, are they going to burn all the paper money and melt all the coins so there is none available? Until the powers to be state that cash no longer exists then it is still LEGAL Tender in Australia. What if one of my grandkids is given some pocket money and goes to the shop for an ice -cream? He doesn't have a card or phone but has cash will he/she still be able to buy an ice- cream?
Please think about the younger and older persons who don't have access to digital equipment.

 

[Pink lion]

Scammers would be in seventh heaven!!!!! our country was once a country of choices, variety & diversity... now we are being swayed, directed, told & choices removed so that we all have to follow the rules that "Big Brother" wants. This will just be another way they will watch & control us & our anonymity will be lost.

ABSOLUTELY... what a miraculous thing for criminals in all of their many forms. Just shows what persistence can do if you can't get rich by stealing money remove money and DRAMATICALLY harvest money by stealing data.

Surely the DARK WEB would have programs for sale right now for those keen to take down society.. Politicians you should all take a bow and place your heads in medieval stocks..

 

[Pink lion]

Having just read this article, something struck me that didn't need to be and that there was still an alternative.
They talk about cashless and living off cards, like your debit or credit card. And then they go on to say that if power goes down, that cards would be no good for electronic transactions and cash would still be needed.
My thought on this is that the front of the card has not changed compared to the old BankCard days where to make a payment, they would place the card face down and run the roller across it to leave an imprint on the supplied paper form, showing name and card details. Then the cost would be added to the form and you would sign it.
Going back to this method in emergency situations would mean that people could still purchase via card, especially if cash is no longer accepted or alternatively, keep cash happening (something which I personally prefer).

A well thought out response...

 

[BillW41]

Tap-and-go payments using your phone or smartwatch could soon be the only way you pay for anything as Australia accelerates towards becoming a completely cashless society.

Finance experts predict the country is just three years away from eliminating cash transactions as the government unveils new legislation to regulate digital payments.

However, the transition doesn't come without controversy.

Proponents argue going cashless increases convenience, makes transactions more traceable for security, and reduces banking costs.

But critics counter that it compromises privacy, excludes groups like seniors and other vulnerable groups, and loses the psychological benefits of paying with physical cash.

View attachment 32039

Australia could go cashless within three years as the government moves to regulate digital wallets. Credit: Pexels.

In Australia, the shift from cash rapidly sped up during the COVID-19 pandemic, when hygiene concerns made people favour contactless tap-and-go payments over exchanging banknotes.

RBA figures show that in 2019, cash was used in 32 per cent of in-person transactions. But by 2021, this plummeted to just 16 per cent of transactions, an enormous drop in only two years.

Meanwhile, mobile wallet usage skyrocketed almost overnight through applications like Apple Pay and Google Pay.

Now, a quarter of non-cash payments happen via mobile wallets.

This is transforming the way Australians pay. A case in point—gone are the days of rummaging through your wallet or purse for the right card. For more and more Aussies, a simple tap of a phone or smartwatch pays for your morning cuppa in seconds.

But consumer advocates caution that convenience comes at a cost. According to finance expert Nicole Pedersen-McKinnon, paying with a card or phone disconnects you from the 'pain' of parting with your money.

'There is a psychological phenomenon called coupling, which means linking your purchases with payment pain,' she explained, adding that this coupling is weaker when money is digitised rather than physical.

'Cash does this as the dollar detriment is immediate and in your face, so to speak.'

This means that ditching cash likely means higher consumer spending, less restraint, and more splurging, which spells trouble for vulnerable groups already struggling with money management.

Another question comes to mind when it comes to 'cashless' purchases: What if your phone runs out of battery while you're out? Or mobile networks crash from a cyber attack? No cash means no backup option.

These concerns arose after the Australian government announced legislation to regulate digital payments for the first time.

The new laws will give the Reserve Bank oversight of technology companies like Apple and Google and their digital wallet systems.



According to finance expert Sarah Wells, the laws are the next step towards Australia eliminating cash completely within three years. She said the government’s recent move to tighten the grip on digital cash payments like Google Pay and Apple Pay is the ‘next step towards a cash-starved’ country.

However, Wells warned the government must consider privacy, security and accessibility for all groups in society, not just the tech-savvy.

'We need to make sure we are not compromising the safety, education and experience of minority groups and young minds in our endeavours to legislate contemporary payment platforms,' Wells said.

Human rights groups also fear invasive tracking of all purchases by tech giants, loss of financial anonymity, and exclusion of vulnerable community members without smartphones.

So, while a fully cashless future offers some benefits, the risks are real, too. Imagine the chaos if an outage brought the tap-and-go system crashing down across the country with no cash backup…

Key Takeaways

• According to finance expert Sarah Wells, Australia may become a cashless society within the next three years.
• New draft legislation would grant the Reserve Bank the power to regulate digital wallets like Google Pay and Apple Pay.
• There is a growing shift from cash to card and digital payments within Australia, with only 16 per cent of in-person transactions conducted in cash last year.
• Future changes in the payment landscape will see the Reserve Bank explore the case for new forms of digital currency while ensuring cash remains a viable option.

Perhaps digital payments could be Australia's future. But is it the future we want or need? Members, let us know your thoughts in the comments below!

The old saying applies: if it ain't broke, don't fix it! I refuse to get a smart phone or fancy watch and am perfectly happy with credit card or cash, always ensuring no fees apply. Leave me alone!

 

[margaretritchie48]

The old saying applies: if it ain't broke, don't fix it! I refuse to get a smart phone or fancy watch and am perfectly happy with credit card or cash, always ensuring no fees apply. Leave me alone!

Agree, if no cash and only cards can be used have the government scrap fees charged.

 

[Observer]

A well thought out response...

Thanks

 

[Observer]

Agree, if no cash and only cards can be used have the government scrap fees charged.

Bet you they wouldn't scrap any fees LOL The old saying, "When you're on a good thing, stick to it."

 

[IAN3005]

It is ridiculous. We know people who do not have a credit card & also do not have a mobile phone. What about Garage Sales? Sunday Markets? Op Shops? It costs money so how will people manage? Also there should not be the $100 limit you can spend on your credit card? Lose your card someone finds it & can go shop to shop spending a $100 each time!!!!!Stupidity!!!

Sheer lunacy..... I will have to do some fancy footwork....