For many Australians, the days of fumbling with loose change or withdrawing cash seem to be fading fast.

Over the past few decades, digital payments have been steadily gaining traction. But the COVID-19 pandemic appears to have supercharged Australia's transition towards a cashless society.

In the 1970s, Australia entered the modern payments era with the advent of the Bankcard. But the pieces were already in place with credit cards and internet banking in the 80s and 90s.

Then, the boom of smartphones and apps brought game-changers like PayPal, Apple Pay and tap-and-go.

The convenience of digital transactions has become irresistible for consumers and businesses. Credit: Shutterstock.

Dr Angel Zhong, an associate professor in finance at RMIT, pointed out that the transition to digital wallets and buy-now-pay-later (BNPL) systems is not only happening in major cities but is also gaining traction in remote parts of Australia.

'The shift towards a cashless society in Australia isn't just a possibility, it's already well underway,' she said.

According to Zhong, the appeal of digital transactions has become too compelling for consumers and businesses to resist. As a result, this shift has caused the digital payment sector to outshine traditional payment methods.

According to a report from the Australian Banking Association, the use of digital wallet payments has seen an astonishing surge, increasing from just $746 million in 2018 to a whopping $93 billion in 2022.

This rise in digital payments has dramatically reduced the use of cash, which now only accounts for 13 per cent of consumer transactions in Australia as of the end of 2022—a stark contrast to the 70 per cent of transactions in cash back in 2007.

Digital wallets have also gained widespread popularity across various age groups. Young Aussies between 18 and 29 are at the forefront, with two-thirds using digital wallets to make payments.

The report also showed that almost 40 per cent of Australians have grown so comfortable with digital wallets that they are willing to leave their physical wallets, credit or debit cards at home, as long as they have their mobile devices equipped with digital wallet capabilities.

Australia has become a global leader in adopting digital payments, outpacing the United States and European countries.

This surge is not limited to digital wallets; Buy Now Pay Later (BNPL) services are also gaining traction in Australia, where many prominent products in this category originated.

According to the Australian Securities and Investment Commission (ASIC), the total value of all BNPL transactions saw a substantial 79 per cent increase during the 2018-19 financial year.

This growth trend has persisted into 2022, with the Reserve Bank of Australia (RBA) reporting an annual expansion of over 30 per cent.

In addition to BNPL, other payment methods like PayID and PayPal are also making their presence felt in the Australian market.

Last week, we reported about the government's plans to regulate the payment system, as outlined in proposed amendments to the Reforms to the Payment Systems (Regulation) Act of 1998.

Under these new regulations, Buy Now, Pay Later (BNPL) services and digital wallet providers such as Apple Pay and Google Pay will be subjected to the same oversight by the Reserve Bank of Australia (RBA) as traditional credit and debit card issuers.

These regulations are designed to ensure that these providers adhere to clear security measures, data protection, and dispute resolution standards.

This, in turn, will instil confidence in Australians that their funds and personal information are adequately safeguarded.

Given the rising concerns regarding cyber-attacks, these regulations will be crucial in reducing the risk of fraudulent activities and money laundering. They will also enhance the detection of suspicious transactions.

The new regulations will also promote fair competition and market stability by levelling the playing field and preventing monopolistic practices.

'As payments increasingly become digital, our payments system needs to remain fit for purpose so that it delivers for consumers and small businesses,' said Treasurer Jim Chalmers.

'We want to make sure the shift to digital payments occurs in a way that promotes greater competition, innovation and productivity across our entire economy.'

​

During a government inquiry last September, the CEO of Commonwealth Bank, Matt Comyn, revealed that maintaining physical cash availability in Australia costs his bank $400 million annually.

He explained that this expense is due to the logistics and security required to transport and manage cash across the country.

It comes in the wake of several major banks, including CommBank, NAB, and ANZ, transitioning some of their branches to cashless operations—with Macquarie Bank even announcing its plan to completely phase out cash services by 2025.

Zhong's prediction suggests that Australia will become a cashless society by 2030, but the Commonwealth Bank's forecast indicates that this transition could occur even sooner, possibly by 2026.

However, it's important to clarify that the move towards a cashless society doesn't imply the complete disappearance of physical banknotes. There's no need to worry that your cash will lose its value.

'The meaning of cashless society is more about the way that we transact… It adds to the convenience of our day-to-day lives,' added Zhong.

'There is always a place for cash, but the majority will be making payments with digital wallets.'

Key Takeaways

• The shift towards a cashless society in Australia is ‘well underway’ according to an expert, with digital wallet payments surging from $746 million in 2018 to over $93 billion in 2022.
• Cash only accounts for 13 per cent of consumer payments in Australia as of the end of 2022, contrasting with 70 per cent in 2007.
• The government recognises this trend and has unveiled reforms to regulate digital payment providers, ensuring they meet clear security measures, data protection and dispute resolution standards.

A world without cash may still be some way off, but innovations and changes like major banks' cashless branches have certainly brought Australia closer. Only time will tell how much further this cashless revolution will go.

Members, what does the future of money look like to you? Share your predictions and thoughts in the comments section below!

 

[gollywog]

So if a lot of people start to walk out of stores that don't take cash they would soon change their policy I have spoke about this before people power it's up to us and it's the only way to stop companies not accepting cash

Yep, I'm with you Macarj, if shops don't accept cash, I shove the goods on the counter and walk out!!
I know of a few shops that have changed their minds and now accept cash!

 

[Jellis]

I fully agree with all the comments made against a cashless society. I pay my bills online and have now gone back to cash for everything else. What happens when we are fully cashless to our selling unwanted items, our farmers markets, paying for a tiny job to be done? I for one do not want everything I do recorded and yes, we will eventually be paying more bank fees once we are cashless.

 

[BellaJugar]

This move to a cashless society is more "Big Brother" where we are being watched and monitored for what we are doing. The banks will be making even more profits from the customers for the shareholders with fees for transactions. Come this summer we have been warned on today's news that there's the likelihood of power blackouts due to the high demand of power as we're in for a hot summer and there's not going to be enough power produced from the solar, wind and what's left of the coal fired power stations to meet demand. What will happen then when there's a power outage in the supermarkets and other stores and you can't pay with eftpos but those who have cash can pay? These power outages are going to be a regular part of our daily lives throughout Australia's eastern states during extremely hot periods and the cold period in the years to some whilst they continue to get the alternative energy supplies set up and established.

 

[David Thackrah]

What about laundromats etc. Are they changing their machines to card payments?

So if a lot of people start to walk out of stores that don't take cash they would soon change their policy I have spoke about this before people power it's up to us and it's the only way to stop companies not accepting cash

For many Australians, the days of fumbling with loose change or withdrawing cash seem to be fading fast.

Over the past few decades, digital payments have been steadily gaining traction. But the COVID-19 pandemic appears to have supercharged Australia's transition towards a cashless society.

In the 1970s, Australia entered the modern payments era with the advent of the Bankcard. But the pieces were already in place with credit cards and internet banking in the 80s and 90s.

Then, the boom of smartphones and apps brought game-changers like PayPal, Apple Pay and tap-and-go.

View attachment 32548

The convenience of digital transactions has become irresistible for consumers and businesses. Credit: Shutterstock.

Dr Angel Zhong, an associate professor in finance at RMIT, pointed out that the transition to digital wallets and buy-now-pay-later (BNPL) systems is not only happening in major cities but is also gaining traction in remote parts of Australia.

'The shift towards a cashless society in Australia isn't just a possibility, it's already well underway,' she said.

According to Zhong, the appeal of digital transactions has become too compelling for consumers and businesses to resist. As a result, this shift has caused the digital payment sector to outshine traditional payment methods.

According to a report from the Australian Banking Association, the use of digital wallet payments has seen an astonishing surge, increasing from just $746 million in 2018 to a whopping $93 billion in 2022.

This rise in digital payments has dramatically reduced the use of cash, which now only accounts for 13 per cent of consumer transactions in Australia as of the end of 2022—a stark contrast to the 70 per cent of transactions in cash back in 2007.

Digital wallets have also gained widespread popularity across various age groups. Young Aussies between 18 and 29 are at the forefront, with two-thirds using digital wallets to make payments.

The report also showed that almost 40 per cent of Australians have grown so comfortable with digital wallets that they are willing to leave their physical wallets, credit or debit cards at home, as long as they have their mobile devices equipped with digital wallet capabilities.

Australia has become a global leader in adopting digital payments, outpacing the United States and European countries.

This surge is not limited to digital wallets; Buy Now Pay Later (BNPL) services are also gaining traction in Australia, where many prominent products in this category originated.

According to the Australian Securities and Investment Commission (ASIC), the total value of all BNPL transactions saw a substantial 79 per cent increase during the 2018-19 financial year.

This growth trend has persisted into 2022, with the Reserve Bank of Australia (RBA) reporting an annual expansion of over 30 per cent.

In addition to BNPL, other payment methods like PayID and PayPal are also making their presence felt in the Australian market.

Last week, we reported about the government's plans to regulate the payment system, as outlined in proposed amendments to the Reforms to the Payment Systems (Regulation) Act of 1998.

Under these new regulations, Buy Now, Pay Later (BNPL) services and digital wallet providers such as Apple Pay and Google Pay will be subjected to the same oversight by the Reserve Bank of Australia (RBA) as traditional credit and debit card issuers.

These regulations are designed to ensure that these providers adhere to clear security measures, data protection, and dispute resolution standards.

This, in turn, will instil confidence in Australians that their funds and personal information are adequately safeguarded.

Given the rising concerns regarding cyber-attacks, these regulations will be crucial in reducing the risk of fraudulent activities and money laundering. They will also enhance the detection of suspicious transactions.

The new regulations will also promote fair competition and market stability by levelling the playing field and preventing monopolistic practices.

'As payments increasingly become digital, our payments system needs to remain fit for purpose so that it delivers for consumers and small businesses,' said Treasurer Jim Chalmers.

'We want to make sure the shift to digital payments occurs in a way that promotes greater competition, innovation and productivity across our entire economy.'

View attachment 32601​

During a government inquiry last September, the CEO of Commonwealth Bank, Matt Comyn, revealed that maintaining physical cash availability in Australia costs his bank $400 million annually.

He explained that this expense is due to the logistics and security required to transport and manage cash across the country.

It comes in the wake of several major banks, including CommBank, NAB, and ANZ, transitioning some of their branches to cashless operations—with Macquarie Bank even announcing its plan to completely phase out cash services by 2025.

Zhong's prediction suggests that Australia will become a cashless society by 2030, but the Commonwealth Bank's forecast indicates that this transition could occur even sooner, possibly by 2026.

However, it's important to clarify that the move towards a cashless society doesn't imply the complete disappearance of physical banknotes. There's no need to worry that your cash will lose its value.

'The meaning of cashless society is more about the way that we transact… It adds to the convenience of our day-to-day lives,' added Zhong.

'There is always a place for cash, but the majority will be making payments with digital wallets.'

Key Takeaways

• The shift towards a cashless society in Australia is ‘well underway’ according to an expert, with digital wallet payments surging from $746 million in 2018 to over $93 billion in 2022.
• Cash only accounts for 13 per cent of consumer payments in Australia as of the end of 2022, contrasting with 70 per cent in 2007.
• The government recognises this trend and has unveiled reforms to regulate digital payment providers, ensuring they meet clear security measures, data protection and dispute resolution standards.

A world without cash may still be some way off, but innovations and changes like major banks' cashless branches have certainly brought Australia closer. Only time will tell how much further this cashless revolution will go.

Members, what does the future of money look like to you? Share your predictions and thoughts in the comments section below!

 

[Dizzy]

For many Australians, the days of fumbling with loose change or withdrawing cash seem to be fading fast.

Over the past few decades, digital payments have been steadily gaining traction. But the COVID-19 pandemic appears to have supercharged Australia's transition towards a cashless society.

In the 1970s, Australia entered the modern payments era with the advent of the Bankcard. But the pieces were already in place with credit cards and internet banking in the 80s and 90s.

Then, the boom of smartphones and apps brought game-changers like PayPal, Apple Pay and tap-and-go.

View attachment 32548

The convenience of digital transactions has become irresistible for consumers and businesses. Credit: Shutterstock.

Dr Angel Zhong, an associate professor in finance at RMIT, pointed out that the transition to digital wallets and buy-now-pay-later (BNPL) systems is not only happening in major cities but is also gaining traction in remote parts of Australia.

'The shift towards a cashless society in Australia isn't just a possibility, it's already well underway,' she said.

According to Zhong, the appeal of digital transactions has become too compelling for consumers and businesses to resist. As a result, this shift has caused the digital payment sector to outshine traditional payment methods.

According to a report from the Australian Banking Association, the use of digital wallet payments has seen an astonishing surge, increasing from just $746 million in 2018 to a whopping $93 billion in 2022.

This rise in digital payments has dramatically reduced the use of cash, which now only accounts for 13 per cent of consumer transactions in Australia as of the end of 2022—a stark contrast to the 70 per cent of transactions in cash back in 2007.

Digital wallets have also gained widespread popularity across various age groups. Young Aussies between 18 and 29 are at the forefront, with two-thirds using digital wallets to make payments.

The report also showed that almost 40 per cent of Australians have grown so comfortable with digital wallets that they are willing to leave their physical wallets, credit or debit cards at home, as long as they have their mobile devices equipped with digital wallet capabilities.

Australia has become a global leader in adopting digital payments, outpacing the United States and European countries.

This surge is not limited to digital wallets; Buy Now Pay Later (BNPL) services are also gaining traction in Australia, where many prominent products in this category originated.

According to the Australian Securities and Investment Commission (ASIC), the total value of all BNPL transactions saw a substantial 79 per cent increase during the 2018-19 financial year.

This growth trend has persisted into 2022, with the Reserve Bank of Australia (RBA) reporting an annual expansion of over 30 per cent.

In addition to BNPL, other payment methods like PayID and PayPal are also making their presence felt in the Australian market.

Last week, we reported about the government's plans to regulate the payment system, as outlined in proposed amendments to the Reforms to the Payment Systems (Regulation) Act of 1998.

Under these new regulations, Buy Now, Pay Later (BNPL) services and digital wallet providers such as Apple Pay and Google Pay will be subjected to the same oversight by the Reserve Bank of Australia (RBA) as traditional credit and debit card issuers.

These regulations are designed to ensure that these providers adhere to clear security measures, data protection, and dispute resolution standards.

This, in turn, will instil confidence in Australians that their funds and personal information are adequately safeguarded.

Given the rising concerns regarding cyber-attacks, these regulations will be crucial in reducing the risk of fraudulent activities and money laundering. They will also enhance the detection of suspicious transactions.

The new regulations will also promote fair competition and market stability by levelling the playing field and preventing monopolistic practices.

'As payments increasingly become digital, our payments system needs to remain fit for purpose so that it delivers for consumers and small businesses,' said Treasurer Jim Chalmers.

'We want to make sure the shift to digital payments occurs in a way that promotes greater competition, innovation and productivity across our entire economy.'

View attachment 32601​

During a government inquiry last September, the CEO of Commonwealth Bank, Matt Comyn, revealed that maintaining physical cash availability in Australia costs his bank $400 million annually.

He explained that this expense is due to the logistics and security required to transport and manage cash across the country.

It comes in the wake of several major banks, including CommBank, NAB, and ANZ, transitioning some of their branches to cashless operations—with Macquarie Bank even announcing its plan to completely phase out cash services by 2025.

Zhong's prediction suggests that Australia will become a cashless society by 2030, but the Commonwealth Bank's forecast indicates that this transition could occur even sooner, possibly by 2026.

However, it's important to clarify that the move towards a cashless society doesn't imply the complete disappearance of physical banknotes. There's no need to worry that your cash will lose its value.

'The meaning of cashless society is more about the way that we transact… It adds to the convenience of our day-to-day lives,' added Zhong.

'There is always a place for cash, but the majority will be making payments with digital wallets.'

Key Takeaways

• The shift towards a cashless society in Australia is ‘well underway’ according to an expert, with digital wallet payments surging from $746 million in 2018 to over $93 billion in 2022.
• Cash only accounts for 13 per cent of consumer payments in Australia as of the end of 2022, contrasting with 70 per cent in 2007.
• The government recognises this trend and has unveiled reforms to regulate digital payment providers, ensuring they meet clear security measures, data protection and dispute resolution standards.

A world without cash may still be some way off, but innovations and changes like major banks' cashless branches have certainly brought Australia closer. Only time will tell how much further this cashless revolution will go.

Members, what does the future of money look like to you? Share your predictions and thoughts in the comments section below!

Not fair especially for seniors and will incur more fees and nil availability during outages. Not to mention fraud!

 

[David Thackrah]

I am speechless as a "early retired" bank officer with wide country town service, to learn "the branch" no longer "carried cash".... and then I realised it is expensive to have cash in your purse !! You have to "go" somewhere to get it. However using cards allows you to be traced and the merchant cannot secret "cash"... then there is the "service fee" now being added to your store docket (always get one) which will enhance the foreign company profits as they probably wont be payjing tax in Australia !!

 

[Colette 3799]

My husband & I are almost cashless though do use our cards not our iPhones etc. we always have coins in the car in case the parking meters are upset with cards but it’s much easier to just carry a small bag with cards, phone, keys etc than a larger one with wallets etc. We always carry a bit of cash when travelling in case things go wrong. We also have cards from two separate banks in case an account gets frozen or a card swallowed by an atm. We’ve received bills & paid online for years. No problems so far. Our son works in the IT industry so is a terrific backup.

We are are also mainly cashless. I do pay with my iPhone which I find very convenient and I use internet banking which I don’t know how I’d manage without it now. I also carry a few dollars in cash for emergencies but I’m hoping we don’t go completely cashless. I put money in birthday cards etc for my grandkids and other family members. I guess I could go gift cards but then I would be paying an extra $6 each time. Plus I pay the little kids who live next door a dollar each per week to put out and bring our bins in. They love doing it and would do it for nothing but they do enjoy getting their coins for their money boxes - which will also disappear if we go cash less lol

 

[Marj53]

Guess going cashless means they will have to get rid of the pokies. Oh no shock horror!!!

 

[Jennie]

For many Australians, the days of fumbling with loose change or withdrawing cash seem to be fading fast.

Over the past few decades, digital payments have been steadily gaining traction. But the COVID-19 pandemic appears to have supercharged Australia's transition towards a cashless society.

In the 1970s, Australia entered the modern payments era with the advent of the Bankcard. But the pieces were already in place with credit cards and internet banking in the 80s and 90s.

Then, the boom of smartphones and apps brought game-changers like PayPal, Apple Pay and tap-and-go.

View attachment 32548

The convenience of digital transactions has become irresistible for consumers and businesses. Credit: Shutterstock.

Dr Angel Zhong, an associate professor in finance at RMIT, pointed out that the transition to digital wallets and buy-now-pay-later (BNPL) systems is not only happening in major cities but is also gaining traction in remote parts of Australia.

'The shift towards a cashless society in Australia isn't just a possibility, it's already well underway,' she said.

According to Zhong, the appeal of digital transactions has become too compelling for consumers and businesses to resist. As a result, this shift has caused the digital payment sector to outshine traditional payment methods.

According to a report from the Australian Banking Association, the use of digital wallet payments has seen an astonishing surge, increasing from just $746 million in 2018 to a whopping $93 billion in 2022.

This rise in digital payments has dramatically reduced the use of cash, which now only accounts for 13 per cent of consumer transactions in Australia as of the end of 2022—a stark contrast to the 70 per cent of transactions in cash back in 2007.

Digital wallets have also gained widespread popularity across various age groups. Young Aussies between 18 and 29 are at the forefront, with two-thirds using digital wallets to make payments.

The report also showed that almost 40 per cent of Australians have grown so comfortable with digital wallets that they are willing to leave their physical wallets, credit or debit cards at home, as long as they have their mobile devices equipped with digital wallet capabilities.

Australia has become a global leader in adopting digital payments, outpacing the United States and European countries.

This surge is not limited to digital wallets; Buy Now Pay Later (BNPL) services are also gaining traction in Australia, where many prominent products in this category originated.

According to the Australian Securities and Investment Commission (ASIC), the total value of all BNPL transactions saw a substantial 79 per cent increase during the 2018-19 financial year.

This growth trend has persisted into 2022, with the Reserve Bank of Australia (RBA) reporting an annual expansion of over 30 per cent.

In addition to BNPL, other payment methods like PayID and PayPal are also making their presence felt in the Australian market.

Last week, we reported about the government's plans to regulate the payment system, as outlined in proposed amendments to the Reforms to the Payment Systems (Regulation) Act of 1998.

Under these new regulations, Buy Now, Pay Later (BNPL) services and digital wallet providers such as Apple Pay and Google Pay will be subjected to the same oversight by the Reserve Bank of Australia (RBA) as traditional credit and debit card issuers.

These regulations are designed to ensure that these providers adhere to clear security measures, data protection, and dispute resolution standards.

This, in turn, will instil confidence in Australians that their funds and personal information are adequately safeguarded.

Given the rising concerns regarding cyber-attacks, these regulations will be crucial in reducing the risk of fraudulent activities and money laundering. They will also enhance the detection of suspicious transactions.

The new regulations will also promote fair competition and market stability by levelling the playing field and preventing monopolistic practices.

'As payments increasingly become digital, our payments system needs to remain fit for purpose so that it delivers for consumers and small businesses,' said Treasurer Jim Chalmers.

'We want to make sure the shift to digital payments occurs in a way that promotes greater competition, innovation and productivity across our entire economy.'

View attachment 32601​

During a government inquiry last September, the CEO of Commonwealth Bank, Matt Comyn, revealed that maintaining physical cash availability in Australia costs his bank $400 million annually.

He explained that this expense is due to the logistics and security required to transport and manage cash across the country.

It comes in the wake of several major banks, including CommBank, NAB, and ANZ, transitioning some of their branches to cashless operations—with Macquarie Bank even announcing its plan to completely phase out cash services by 2025.

Zhong's prediction suggests that Australia will become a cashless society by 2030, but the Commonwealth Bank's forecast indicates that this transition could occur even sooner, possibly by 2026.

However, it's important to clarify that the move towards a cashless society doesn't imply the complete disappearance of physical banknotes. There's no need to worry that your cash will lose its value.

'The meaning of cashless society is more about the way that we transact… It adds to the convenience of our day-to-day lives,' added Zhong.

'There is always a place for cash, but the majority will be making payments with digital wallets.'

Key Takeaways

• The shift towards a cashless society in Australia is ‘well underway’ according to an expert, with digital wallet payments surging from $746 million in 2018 to over $93 billion in 2022.
• Cash only accounts for 13 per cent of consumer payments in Australia as of the end of 2022, contrasting with 70 per cent in 2007.
• The government recognises this trend and has unveiled reforms to regulate digital payment providers, ensuring they meet clear security measures, data protection and dispute resolution standards.

A world without cash may still be some way off, but innovations and changes like major banks' cashless branches have certainly brought Australia closer. Only time will tell how much further this cashless revolution will go.

Members, what does the future of money look like to you? Share your predictions and thoughts in the comments section below!

What's the bet, the banks will put up fees for using cards and internet banking once we all switch over. In the 80's-90's when we all had to have our pays go straight to a bank account, suddenly bank fees for deposit and withdrawals were instigated. The only winners are the banks.

 

[lornafurst]

For many Australians, the days of fumbling with loose change or withdrawing cash seem to be fading fast.

Over the past few decades, digital payments have been steadily gaining traction. But the COVID-19 pandemic appears to have supercharged Australia's transition towards a cashless society.

In the 1970s, Australia entered the modern payments era with the advent of the Bankcard. But the pieces were already in place with credit cards and internet banking in the 80s and 90s.

Then, the boom of smartphones and apps brought game-changers like PayPal, Apple Pay and tap-and-go.

View attachment 32548

The convenience of digital transactions has become irresistible for consumers and businesses. Credit: Shutterstock.

Dr Angel Zhong, an associate professor in finance at RMIT, pointed out that the transition to digital wallets and buy-now-pay-later (BNPL) systems is not only happening in major cities but is also gaining traction in remote parts of Australia.

'The shift towards a cashless society in Australia isn't just a possibility, it's already well underway,' she said.

According to Zhong, the appeal of digital transactions has become too compelling for consumers and businesses to resist. As a result, this shift has caused the digital payment sector to outshine traditional payment methods.

According to a report from the Australian Banking Association, the use of digital wallet payments has seen an astonishing surge, increasing from just $746 million in 2018 to a whopping $93 billion in 2022.

This rise in digital payments has dramatically reduced the use of cash, which now only accounts for 13 per cent of consumer transactions in Australia as of the end of 2022—a stark contrast to the 70 per cent of transactions in cash back in 2007.

Digital wallets have also gained widespread popularity across various age groups. Young Aussies between 18 and 29 are at the forefront, with two-thirds using digital wallets to make payments.

The report also showed that almost 40 per cent of Australians have grown so comfortable with digital wallets that they are willing to leave their physical wallets, credit or debit cards at home, as long as they have their mobile devices equipped with digital wallet capabilities.

Australia has become a global leader in adopting digital payments, outpacing the United States and European countries.

This surge is not limited to digital wallets; Buy Now Pay Later (BNPL) services are also gaining traction in Australia, where many prominent products in this category originated.

According to the Australian Securities and Investment Commission (ASIC), the total value of all BNPL transactions saw a substantial 79 per cent increase during the 2018-19 financial year.

This growth trend has persisted into 2022, with the Reserve Bank of Australia (RBA) reporting an annual expansion of over 30 per cent.

In addition to BNPL, other payment methods like PayID and PayPal are also making their presence felt in the Australian market.

Last week, we reported about the government's plans to regulate the payment system, as outlined in proposed amendments to the Reforms to the Payment Systems (Regulation) Act of 1998.

Under these new regulations, Buy Now, Pay Later (BNPL) services and digital wallet providers such as Apple Pay and Google Pay will be subjected to the same oversight by the Reserve Bank of Australia (RBA) as traditional credit and debit card issuers.

These regulations are designed to ensure that these providers adhere to clear security measures, data protection, and dispute resolution standards.

This, in turn, will instil confidence in Australians that their funds and personal information are adequately safeguarded.

Given the rising concerns regarding cyber-attacks, these regulations will be crucial in reducing the risk of fraudulent activities and money laundering. They will also enhance the detection of suspicious transactions.

The new regulations will also promote fair competition and market stability by levelling the playing field and preventing monopolistic practices.

'As payments increasingly become digital, our payments system needs to remain fit for purpose so that it delivers for consumers and small businesses,' said Treasurer Jim Chalmers.

'We want to make sure the shift to digital payments occurs in a way that promotes greater competition, innovation and productivity across our entire economy.'

View attachment 32601​

During a government inquiry last September, the CEO of Commonwealth Bank, Matt Comyn, revealed that maintaining physical cash availability in Australia costs his bank $400 million annually.

He explained that this expense is due to the logistics and security required to transport and manage cash across the country.

It comes in the wake of several major banks, including CommBank, NAB, and ANZ, transitioning some of their branches to cashless operations—with Macquarie Bank even announcing its plan to completely phase out cash services by 2025.

Zhong's prediction suggests that Australia will become a cashless society by 2030, but the Commonwealth Bank's forecast indicates that this transition could occur even sooner, possibly by 2026.

However, it's important to clarify that the move towards a cashless society doesn't imply the complete disappearance of physical banknotes. There's no need to worry that your cash will lose its value.

'The meaning of cashless society is more about the way that we transact… It adds to the convenience of our day-to-day lives,' added Zhong.

'There is always a place for cash, but the majority will be making payments with digital wallets.'

Key Takeaways

• The shift towards a cashless society in Australia is ‘well underway’ according to an expert, with digital wallet payments surging from $746 million in 2018 to over $93 billion in 2022.
• Cash only accounts for 13 per cent of consumer payments in Australia as of the end of 2022, contrasting with 70 per cent in 2007.
• The government recognises this trend and has unveiled reforms to regulate digital payment providers, ensuring they meet clear security measures, data protection and dispute resolution standards.

A world without cash may still be some way off, but innovations and changes like major banks' cashless branches have certainly brought Australia closer. Only time will tell how much further this cashless revolution will go.

Members, what does the future of money look like to you? Share your predictions and thoughts in the comments section below!

Please lets STOP this craziness !!!

 

[GillyH]

Cash is best! It can't be hacked and there is no battery to worry about and governments cannot track your spending. That said , I do use my internet to pay for utilities and insurance and large purchases.

Totally agree with you, I don't like putting all my eggs in one basket. I have worked hard for my money & fed up with getting charged bank fees for nothing! the banks aren't looking after our money.

 

[JedCorella]

My husband & I are almost cashless though do use our cards not our iPhones etc. we always have coins in the car in case the parking meters are upset with cards but it’s much easier to just carry a small bag with cards, phone, keys etc than a larger one with wallets etc. We always carry a bit of cash when travelling in case things go wrong. We also have cards from two separate banks in case an account gets frozen or a card swallowed by an atm. We’ve received bills & paid online for years. No problems so far. Our son works in the IT industry so is a terrific backup.

Then you are part of the problem of being led, like a sheep, to your own slaughter. Don't you get it? It is about control. Have a look at the Chinese social credit system. You say the wrong thing and the can freeze all your money just like that. Are you really that gulluble that you would fall for something like that or impose it upon our younger generation. The awake ones anyway.

 

[JedCorella]

Yes, everything. I guess you know the old English terminology for wanting to go to the toilet. That is going from spend a penny to the term “ is that tap or swipe?”

Agree. Not sure if you are on social media but there is a group on Facebook called cash is king support for Australian businesses. It’s a site that people can mention those businesses refusing cash and those refusing cards. Already a lot of KFC and MACDONALDS have been reported to the group so that might be of interest to you

Any store that refuses cash is breaking the law as it is illegal to refuse legal tender. As for me, I will not set foot in any store that has that policy. As far as KFC and McDonalds, people shouldn't eat that garbage in the first place!

 

[JedCorella]

Do the authorities, have a plan for how we use our cards when power and mobile, internet services are down or not available (i.e. outback Australia) or due to a power outage e.g 2019/2020 fire on the South coast of NSW - ATMs/pay way didn't work for several weeks.

Authorities don't think. That is the problem. They are so far removed from reality that they don't consider the consequences of their actions. They don't care about you!
Just look at how much tax payers' money the government is wasting. The Voice, $400 million, Ukraine, $500 million or more, the, doomed from the start, French submarines back out $750 million. It goes on and on yet the roads are shit, our power costs are off the planet and fuel is going up like no tomorrow.
I'm not even scratching the surface here.

 

[JedCorella]

This move to a cashless society is more "Big Brother" where we are being watched and monitored for what we are doing. The banks will be making even more profits from the customers for the shareholders with fees for transactions. Come this summer we have been warned on today's news that there's the likelihood of power blackouts due to the high demand of power as we're in for a hot summer and there's not going to be enough power produced from the solar, wind and what's left of the coal fired power stations to meet demand. What will happen then when there's a power outage in the supermarkets and other stores and you can't pay with eftpos but those who have cash can pay? These power outages are going to be a regular part of our daily lives throughout Australia's eastern states during extremely hot periods and the cold period in the years to some whilst they continue to get the alternative energy supplies set up and established.

All I can say is the same thing I've been saying for over 10 years. "George Orwell was right!!"

 

[Brody]

Unfortunately it is inevitable that this is going to happen. Aside from anything else, it means anything we do without using cash, is an "invisible" way of tracking every purchase regardless of
what it may be. And as was mentioned
before the Government will have access
to everything we "spend" and pretty much everything we do.
It has been said we are a test case in Australia, to basically set the scene across the world which will eventually
be total control. if any of us think
we can somehow dodge this, think again.
Anything, I repeat anything we do will be recorded and without trying or using any "other method". Initially the good old Barter System might be of some benefit, but that is very limited. Goods and Services might get us across the line,
to start off with, and the TRADES ( I'll do for you, and you can do for me arrangement) won't work indefinitely. The reason is if you don't have what I need and I don't have what you need
the whole thing falls apart. And unless you are in the farming end of the deal and can swap, my Meat for your Dairy etc. That too has it's limits. The Farmers
are already doing that, as we speak, but aside from that I don't need a Plumber, or whatever trade that is because I can't eat
what you can offer, so no deal.
When it comes down to the Nitty Gritty of it, survival predominates any other primal instinct. I will do whatever it takes to provide for me and my Family. If that means not using Cash or Whatever, that is what I will do.

 

[Brody]

Unfortunately it is inevitable that this is going to happen. Aside from anything else, it means anything we do without using cash, is an "invisible" way of tracking every purchase regardless of
what it may be. And as was mentioned
before the Government will have access
to everything we "spend" and pretty Mucha everything we do.
It has been said we are a test case in Australia, to basically set the scene across the world which will eventually
be total control. if any of us think
we can somehow dodge this, think again.
Anything, I repeat anything we do will be recorded and without trying or using any "other method". Initially the good old Barter System might be of some benefit, but that is very limited. Goods and Services might get us across the line,
to start off with, and the TRADES ( I'll do for you, and you can do for me arrangement) won't work indefinitely. The reason is if you don't have what I need and I don't have what you need
the whole thing falls apart. And unless you are in the farming end of the deal and can swap, my Meat for your Dairy etc. That too has it's limits. The Farmers
are already doing that, as we speak, but aside from that I don't need a Plumber, or whatever trade that is because I can't eat
what you can offer, so no deal.
When it comes down to the Nitty Gritty of it, survival predominates any other primal instinct. I will do whatever it takes to provide for me and my Family. If that means not using Cash or Whatever, that is what I will do.

 

[JimmyFlatrock]

Anybody who thought that banks won't take this opportunity to charge a transaction fee on your card had hot rocks in their head
They already do charge this fee, but to the merchant, but once we are cashless the merchant will pass these fees onto us as we will have no option but to pay.

Here's something to give some hope for some in respect of transaction fees. I saw this today, from the CommBank. There is a bit of repetition in the photos, however the salient point is in the 5th segment of the 2nd photo, shows the fees associated with Card and Internet electronic transactions for this basic account.

The first photo has details on eligibility for this no transaction fee account.

This commitment by the CommBank was made under the Banking Code of practice to raise awareness of their 'basic account' to customers who may hold a Government concession card. Their 'basic account' is called the Streamline Basic Account.






Noice

 

[Rob44]

Are they going to replace all the parking meters and supermarket trolleys, etc. also? And then charge you bank fees everytime you use your carb?

Now that you have suggested it, city councils will find their additional $3.50 transaction fee irresistible.

 

[Rob44]

I have restarted using cash. F*** them!