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!

 

[Loubeauxarts]

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).

Unfortunately, as became apparent a few weeks ago here in Melbourne, very few businesses have one of the old click clack machines. When internet banking went down for much of the day people were sent into a panic trying to locate a bank that actually handled cash
It is estimated that business reliant on electronic payments lost millions over the space of a few hours

 

[June E]

Cash should always be kept as an alternative to digital. It’s been used for thousands of years in one form or another.

 

[Luckyus]

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!

Governments won't be happy untl you drop your pants and bend over and grab your ankles.

 

[Liz]

What about the small business people who come and do odd jobs at your home, they rely on cash payments. They are not going to carry card readers around with them and if they did, I bet the price they charged would rise because of it. Stupidy in my book.

 

[arjaybee]

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!

We need cash as a backup and for paying odd jobs or markets where there are bargains to be had. It is an important tool to learn the value of things as too many have lost this

 

[wendell]

As we see all the comments say No
To this ridiculous ludicrous thought people with authority are going mad with stupid ideas just like the YES NO vote I am sick of these people in power and their madness

 

[Observer]

Unfortunately, as became apparent a few weeks ago here in Melbourne, very few businesses have one of the old click clack machines. When internet banking went down for much of the day people were sent into a panic trying to locate a bank that actually handled cash
It is estimated that business reliant on electronic payments lost millions over the space of a few hours

That kinda cracks me up a bit Lou I hear what you're saying and don't quite agree that perhaps millions in trade was lost in a few hours. If anything, trade ceased for a few hours, but not lost. No different to a trader being closed over a weekend.
I agree that very few businesses have the old click clack machines as you put it. What I am suggesting is that perhaps all businesses should have this option open to them - reintroduce them during times of network down time. Businesses who generally relied on electronic payments for trade could then still operate fully by accepting cash as well as the cards.

 

[magpie1]

lets hope that we have our electricity sorted out by then for a start.....now should we lose supply to our accounts either by massive power outages or cyber criminal activity and so on, then without cash as a backup there will be no selling of anything or buying of anything until the problem is rectified.....now by then as is the case now somewhat, that outage could be hours or an entire day.....but what if it is longer, my Dear God could you imagine what it would be like if the entire economy was shutdown for days or more ?......without a convenient BACK UP plan available to fall back on. Stick with CASH.

 

[Veggiepatch]

The only advantage of a cashless society is that cash payments for goods and services CAN be hidden. That is, as a tax dodge. No record of payment, no tracing a business's transaction activity and turnover equates to no or reduced tax being paid.

 

[Cuddles3]

When I pay with a 10 dollar note for my coffee, the change goes into the tin asking for donations for Guide Dogs. No cash, no donation, How much will charities lose out with card only. Would you pay for a $2 raffle ticket from the lady sitting outside the IGA with a card?

 

[Squizzy1]

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!

Going to be difficult teaching the kids the value of money, particularly given they will grow up learning no monetary restraint. Will have to give them a gift card or something for lunches or sweets etc. No fetes or other money raising events without a machine, no bobs for jobs, tipping, etc, and you had better get used to online scams taking over market place and the like. Charities and things like windscreen washers already suffer from noone carrying cash. Can't see how it makes banking cheaper or more secure either given how many billions are lost yearly already and the amount of laundering going on. Will be strange seeing junkies paying by Apple/Google pay though.

 

[Observer]

Going to be difficult teaching the kids the value of money, particularly given they will grow up learning no monetary restraint. Will have to give them a gift card or something for lunches or sweets etc. No fetes or other money raising events without a machine, no bobs for jobs, tipping, etc, and you had better get used to online scams taking over market place and the like. Charities and things like windscreen washers already suffer from noone carrying cash. Can't see how it makes banking cheaper or more secure either given how many billions are lost yearly already and the amount of laundering going on. Will be strange seeing junkies paying by Apple/Google pay though.

I like the comment regarding the junkies. Clean streets. That will leave the suppliers to try and operate scams only.
And you did make me chuckle with another comment. "no bobs for jobs". Haven't heard that one in years

 

[Brody]

More than likely,the future of Australia is going down the tube well and truly. There is another idea floating around.
This one sounds like fiction of the first order.
First we turn into a Cashless Society, Then it becomes a plan to get rid of actual systems like Credit Cards etc. So many other thjngs we could come up with,the list is getting longer because there is a risk of losing them or they are confusing etc. Then some brainy person arrives at a place where he comes up with a really good idea.What if we thought it could be done in a different way. They would have to ensure that our
Financial Affairs, our Bills, Insurance Policies, Documents of all types, Licences, Groceries, etc. are safe. We could put other things in there too if we thought long and hard about it.
A light bulb moment, you know how we are using chips to help us find our Dogs, and Cats etc. If they get lost or stolen ?
What if all our important information could be recorded on a chip with all the things that we need to do and record and have a small chip, under our skin that contains all our private and personal information with a safeguard that gives us freedom over all our personal effects,
Birthday Dates, Appointments,Licence, Registration, etc etc. etc.
All of that information at our fingertips
Instantly provided when needed.

What do you think ? I think the majority of people would queue for hours or days to get everything sorted, so everything they needed would be there instantly.
No Drama ?

 

[GillyH]

It happens often enough when IT doesn't work, crashes or has been hacked. I think a well know supermarket was involved only a few years ago. My experience was our camping trip, remote WA town we need supplies before we went out bush for a week. The system went down at the bottle shop no one could pay for their alcohol except for us when we discovered we still had some cash on us. WIFI goes down on a minesite everything goes down from the digitalised tills & ATM's No purchases then!

 

[Shane/#]

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 lobotomised brainless imbeciles have spoken well your head is wedged tightly up your arse if you say it will be a cashless society by 2026 there are people young and old that don't know how to use technology do do this so how's that going to work and you idiots haven't thought about hacker's and scammers probably working on a system to rip people off and less bank fees more like higher fee's and everything traceable supposedly f#####morons

 

[Shane/#]

It happens often enough when IT doesn't work, crashes or has been hacked. I think a well know supermarket was involved only a few years ago. My experience was our camping trip, remote WA town we need supplies before we went out bush for a week. The system went down at the bottle shop no one could pay for their alcohol except for us when we discovered we still had some cash on us. WIFI goes down on a minesite everything goes down from the digitalised tills & ATM's No purchases then!

Exactly %

 

[Observer]

The lobotomised brainless imbeciles have spoken well your head is wedged tightly up your arse if you say it will be a cashless society by 2026 there are people young and old that don't know how to use technology do do this so how's that going to work and you idiots haven't thought about hacker's and scammers probably working on a system to rip people off and less bank fees more like higher fee's and everything traceable supposedly f#####morons

Don't forget to take a breath ;-)

 

[Observer]

 

[growroses]

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!

in CARINS the buses have gone from GO CARDS back to CASH ONLY can you under stand this

 

[Observer]

in CARINS the buses have gone from GO CARDS back to CASH ONLY can you under stand this

I'm suspecting that there is some kind of hidden agenda. From what l have been able to look up, GO Cards will cease to function by Oct 31 and the entire structure will be upgraded to a new ticketing system. From Oct 31, GO CARDS will stop, cash will be used, until a new ticketing system is implemented.
Pls don't quote me on this information.