When was the last time you used cash? For many Australians using cash or even swiping a card has become a rare event.

The move towards a cashless society started 50 years ago with the introduction of the Bankcard and was driven by technological advancements. But it really took off with the COVID pandemic when consumers and retailers were reluctant to handle potentially infected notes and coins.

The federal government last week underscored its recognition of this trend by unveiling reforms to regulate digital payment providers. Treasurer Jim Chalmers said:

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

From big cities to remote rural corners the shift towards digital payments is evident. This raises the question, is a cashless society inevitable?

The phenomenal growth of the digital payments​

The convenience of digital transactions has become irresistible for consumers and businesses and has led to the sector eclipsing traditional payment methods.

The relentless march of technology has produced myriad innovative platforms from mobile wallets to buy-now-pay-later (BNPL) schemes, each vying for a piece of this burgeoning market.

A recent report by the Australian Banking Association paints a vivid picture of the digital payment industry’s explosive expansion.

The use of digital wallet payments on smartphones and watches has soared from $746 million in 2018 to over $93 billion in 2022. Cash only accounts for 13% of consumer payments in Australia as of the end of 2022, a stark contrast to 70% in 2007.

Australian Banking Association

Digital wallets are popular with most age groups. Young Australians aged between 18 and 29 are leading the pack, with two thirds using digital wallets to pay for goods and services.

About 40% of Australians are comfortable leaving home without their actual wallets or even credit or debit cards, as long as they have their mobile devices with digital wallets.

The astonishing speed at which Australians have embraced digital payments places the country among the top users of cashless payments globally, surpassing the United States and European countries.

Digital wallets are not the only players in this space. The use of BNPL products is also growing rapidly in Australia, which was where many of the large-scale products in this category started.

Stripe and University of Sydney.

The Australian Securities and Investment Commission (ASIC) reports the total value of all BNPL transactions increased by 79% in the 2018–19 financial year. This continues into 2022 with an annual growth beyond 30% according to the Reserve Bank of Australia (RBA).

PayID and PayPal payments are also claiming their shares in this space.

Are government regulations necessary?​

The government’s planned regulation of the system, contained in amendments to the Reforms to the Payment Systems (Regulation) Act 1998, is a big step towards establishing a secure and trustworthy cashless society in Australia.

It will subject BNPL and digital wallet service providers like Apple Pay and Google Pay to the same oversight by the RBA as traditional credit and debit cards.

The regulations will require providers meet clear standards for security measures, data protection and dispute resolution to give Australians confidence their funds and personal information are safeguarded.

With increasing concern over cyber attacks, the regulations will help reduce the risk of fraudulent activities and money laundering and help identify suspicious transactions, maintaining the integrity of the financial system.

Also, regulation will promote fair competition and market stability by levelling the playing field and by preventing monopolies.

Apple says it doesn’t need to be regulated because it only provides the architecture to deliver a service. Shutterstock

While banks support the forthcoming regulation, new market players are less positive. For example, Apple Pay says it is merely providing technical architecturerather than payment services.

The current regulatory debate is not new. When credit cards made their debut in Australia in the early 1970s, there were hardly any safeguards for consumers. This led to card users being hit with high interest rates on money owed, sneaky fees and aggressive marketing tactics.

Consequently, regulations were introduced to hold card providers to a standard of responsible behaviour. Today, they must openly disclose interest rates, fees and charges, and follow stringent guidelines in advertising their products and services.

Regulating digital wallet providers strikes a crucial balance between innovation and accountability, ensuring life-changing technology continues to serve the public interest.

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

The blend of technological advancements, changing consumer preferences and regulatory adaptations has set the stage for this transformation. The new regulations will help Australians navigate this transition more confidently.

This article was first published on The Conversation, and was written by Angel Zhong, Associate Professor of Finance, RMIT University

 

[Robbo3006]

When was the last time you used cash? For many Australians using cash or even swiping a card has become a rare event.

The move towards a cashless society started 50 years ago with the introduction of the Bankcard and was driven by technological advancements. But it really took off with the COVID pandemic when consumers and retailers were reluctant to handle potentially infected notes and coins.

The federal government last week underscored its recognition of this trend by unveiling reforms to regulate digital payment providers. Treasurer Jim Chalmers said:


From big cities to remote rural corners the shift towards digital payments is evident. This raises the question, is a cashless society inevitable?

The phenomenal growth of the digital payments​

The convenience of digital transactions has become irresistible for consumers and businesses and has led to the sector eclipsing traditional payment methods.

The relentless march of technology has produced myriad innovative platforms from mobile wallets to buy-now-pay-later (BNPL) schemes, each vying for a piece of this burgeoning market.

A recent report by the Australian Banking Association paints a vivid picture of the digital payment industry’s explosive expansion.

The use of digital wallet payments on smartphones and watches has soared from $746 million in 2018 to over $93 billion in 2022. Cash only accounts for 13% of consumer payments in Australia as of the end of 2022, a stark contrast to 70% in 2007.

Australian Banking Association

Digital wallets are popular with most age groups. Young Australians aged between 18 and 29 are leading the pack, with two thirds using digital wallets to pay for goods and services.

About 40% of Australians are comfortable leaving home without their actual wallets or even credit or debit cards, as long as they have their mobile devices with digital wallets.

The astonishing speed at which Australians have embraced digital payments places the country among the top users of cashless payments globally, surpassing the United States and European countries.

Digital wallets are not the only players in this space. The use of BNPL products is also growing rapidly in Australia, which was where many of the large-scale products in this category started.

Stripe and University of Sydney.

The Australian Securities and Investment Commission (ASIC) reports the total value of all BNPL transactions increased by 79% in the 2018–19 financial year. This continues into 2022 with an annual growth beyond 30% according to the Reserve Bank of Australia (RBA).

PayID and PayPal payments are also claiming their shares in this space.

Are government regulations necessary?​

The government’s planned regulation of the system, contained in amendments to the Reforms to the Payment Systems (Regulation) Act 1998, is a big step towards establishing a secure and trustworthy cashless society in Australia.

It will subject BNPL and digital wallet service providers like Apple Pay and Google Pay to the same oversight by the RBA as traditional credit and debit cards.

The regulations will require providers meet clear standards for security measures, data protection and dispute resolution to give Australians confidence their funds and personal information are safeguarded.

With increasing concern over cyber attacks, the regulations will help reduce the risk of fraudulent activities and money laundering and help identify suspicious transactions, maintaining the integrity of the financial system.

Also, regulation will promote fair competition and market stability by levelling the playing field and by preventing monopolies.

Apple says it doesn’t need to be regulated because it only provides the architecture to deliver a service. Shutterstock

While banks support the forthcoming regulation, new market players are less positive. For example, Apple Pay says it is merely providing technical architecturerather than payment services.

The current regulatory debate is not new. When credit cards made their debut in Australia in the early 1970s, there were hardly any safeguards for consumers. This led to card users being hit with high interest rates on money owed, sneaky fees and aggressive marketing tactics.

Consequently, regulations were introduced to hold card providers to a standard of responsible behaviour. Today, they must openly disclose interest rates, fees and charges, and follow stringent guidelines in advertising their products and services.

Regulating digital wallet providers strikes a crucial balance between innovation and accountability, ensuring life-changing technology continues to serve the public interest.

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

The blend of technological advancements, changing consumer preferences and regulatory adaptations has set the stage for this transformation. The new regulations will help Australians navigate this transition more confidently.

This article was first published on The Conversation, and was written by Angel Zhong, Associate Professor of Finance, RMIT University

You do realise, if it's good for the banks and the government, it's fatal for Us.

 

[Luckyus]

When was the last time you used cash? For many Australians using cash or even swiping a card has become a rare event.

The move towards a cashless society started 50 years ago with the introduction of the Bankcard and was driven by technological advancements. But it really took off with the COVID pandemic when consumers and retailers were reluctant to handle potentially infected notes and coins.

The federal government last week underscored its recognition of this trend by unveiling reforms to regulate digital payment providers. Treasurer Jim Chalmers said:


From big cities to remote rural corners the shift towards digital payments is evident. This raises the question, is a cashless society inevitable?

The phenomenal growth of the digital payments​

The convenience of digital transactions has become irresistible for consumers and businesses and has led to the sector eclipsing traditional payment methods.

The relentless march of technology has produced myriad innovative platforms from mobile wallets to buy-now-pay-later (BNPL) schemes, each vying for a piece of this burgeoning market.

A recent report by the Australian Banking Association paints a vivid picture of the digital payment industry’s explosive expansion.

The use of digital wallet payments on smartphones and watches has soared from $746 million in 2018 to over $93 billion in 2022. Cash only accounts for 13% of consumer payments in Australia as of the end of 2022, a stark contrast to 70% in 2007.

Australian Banking Association

Digital wallets are popular with most age groups. Young Australians aged between 18 and 29 are leading the pack, with two thirds using digital wallets to pay for goods and services.

About 40% of Australians are comfortable leaving home without their actual wallets or even credit or debit cards, as long as they have their mobile devices with digital wallets.

The astonishing speed at which Australians have embraced digital payments places the country among the top users of cashless payments globally, surpassing the United States and European countries.

Digital wallets are not the only players in this space. The use of BNPL products is also growing rapidly in Australia, which was where many of the large-scale products in this category started.

Stripe and University of Sydney.

The Australian Securities and Investment Commission (ASIC) reports the total value of all BNPL transactions increased by 79% in the 2018–19 financial year. This continues into 2022 with an annual growth beyond 30% according to the Reserve Bank of Australia (RBA).

PayID and PayPal payments are also claiming their shares in this space.

Are government regulations necessary?​

The government’s planned regulation of the system, contained in amendments to the Reforms to the Payment Systems (Regulation) Act 1998, is a big step towards establishing a secure and trustworthy cashless society in Australia.

It will subject BNPL and digital wallet service providers like Apple Pay and Google Pay to the same oversight by the RBA as traditional credit and debit cards.

The regulations will require providers meet clear standards for security measures, data protection and dispute resolution to give Australians confidence their funds and personal information are safeguarded.

With increasing concern over cyber attacks, the regulations will help reduce the risk of fraudulent activities and money laundering and help identify suspicious transactions, maintaining the integrity of the financial system.

Also, regulation will promote fair competition and market stability by levelling the playing field and by preventing monopolies.

Apple says it doesn’t need to be regulated because it only provides the architecture to deliver a service. Shutterstock

While banks support the forthcoming regulation, new market players are less positive. For example, Apple Pay says it is merely providing technical architecturerather than payment services.

The current regulatory debate is not new. When credit cards made their debut in Australia in the early 1970s, there were hardly any safeguards for consumers. This led to card users being hit with high interest rates on money owed, sneaky fees and aggressive marketing tactics.

Consequently, regulations were introduced to hold card providers to a standard of responsible behaviour. Today, they must openly disclose interest rates, fees and charges, and follow stringent guidelines in advertising their products and services.

Regulating digital wallet providers strikes a crucial balance between innovation and accountability, ensuring life-changing technology continues to serve the public interest.

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

The blend of technological advancements, changing consumer preferences and regulatory adaptations has set the stage for this transformation. The new regulations will help Australians navigate this transition more confidently.

This article was first published on The Conversation, and was written by Angel Zhong, Associate Professor of Finance, RMIT University

How much extra are we going to be paying, to use this shite.

 

[bschulze]

How much extra are we going to be paying, to use this shite.I

You do realise, if it's good for the banks and the government, it's fatal for Us.

I always have a laugh when the phone servers fail These same people that are using the cash less way of payments are the very first to scream like bad mugs But if they had of used cash no issues at all

 

[BillW41]

When was the last time you used cash? For many Australians using cash or even swiping a card has become a rare event.

The move towards a cashless society started 50 years ago with the introduction of the Bankcard and was driven by technological advancements. But it really took off with the COVID pandemic when consumers and retailers were reluctant to handle potentially infected notes and coins.

The federal government last week underscored its recognition of this trend by unveiling reforms to regulate digital payment providers. Treasurer Jim Chalmers said:


From big cities to remote rural corners the shift towards digital payments is evident. This raises the question, is a cashless society inevitable?

The phenomenal growth of the digital payments​

The convenience of digital transactions has become irresistible for consumers and businesses and has led to the sector eclipsing traditional payment methods.

The relentless march of technology has produced myriad innovative platforms from mobile wallets to buy-now-pay-later (BNPL) schemes, each vying for a piece of this burgeoning market.

A recent report by the Australian Banking Association paints a vivid picture of the digital payment industry’s explosive expansion.

The use of digital wallet payments on smartphones and watches has soared from $746 million in 2018 to over $93 billion in 2022. Cash only accounts for 13% of consumer payments in Australia as of the end of 2022, a stark contrast to 70% in 2007.

Australian Banking Association

Digital wallets are popular with most age groups. Young Australians aged between 18 and 29 are leading the pack, with two thirds using digital wallets to pay for goods and services.

About 40% of Australians are comfortable leaving home without their actual wallets or even credit or debit cards, as long as they have their mobile devices with digital wallets.

The astonishing speed at which Australians have embraced digital payments places the country among the top users of cashless payments globally, surpassing the United States and European countries.

Digital wallets are not the only players in this space. The use of BNPL products is also growing rapidly in Australia, which was where many of the large-scale products in this category started.

Stripe and University of Sydney.

The Australian Securities and Investment Commission (ASIC) reports the total value of all BNPL transactions increased by 79% in the 2018–19 financial year. This continues into 2022 with an annual growth beyond 30% according to the Reserve Bank of Australia (RBA).

PayID and PayPal payments are also claiming their shares in this space.

Are government regulations necessary?​

The government’s planned regulation of the system, contained in amendments to the Reforms to the Payment Systems (Regulation) Act 1998, is a big step towards establishing a secure and trustworthy cashless society in Australia.

It will subject BNPL and digital wallet service providers like Apple Pay and Google Pay to the same oversight by the RBA as traditional credit and debit cards.

The regulations will require providers meet clear standards for security measures, data protection and dispute resolution to give Australians confidence their funds and personal information are safeguarded.

With increasing concern over cyber attacks, the regulations will help reduce the risk of fraudulent activities and money laundering and help identify suspicious transactions, maintaining the integrity of the financial system.

Also, regulation will promote fair competition and market stability by levelling the playing field and by preventing monopolies.

Apple says it doesn’t need to be regulated because it only provides the architecture to deliver a service. Shutterstock

While banks support the forthcoming regulation, new market players are less positive. For example, Apple Pay says it is merely providing technical architecturerather than payment services.

The current regulatory debate is not new. When credit cards made their debut in Australia in the early 1970s, there were hardly any safeguards for consumers. This led to card users being hit with high interest rates on money owed, sneaky fees and aggressive marketing tactics.

Consequently, regulations were introduced to hold card providers to a standard of responsible behaviour. Today, they must openly disclose interest rates, fees and charges, and follow stringent guidelines in advertising their products and services.

Regulating digital wallet providers strikes a crucial balance between innovation and accountability, ensuring life-changing technology continues to serve the public interest.

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

The blend of technological advancements, changing consumer preferences and regulatory adaptations has set the stage for this transformation. The new regulations will help Australians navigate this transition more confidently.

This article was first published on The Conversation, and was written by Angel Zhong, Associate Professor of Finance, RMIT University

Heaven help charities, small club raffles and other small payments which require cash! Nobody seems to give them a thought.

 

[Cheezil]

When was the last time you used cash? For many Australians using cash or even swiping a card has become a rare event.

The move towards a cashless society started 50 years ago with the introduction of the Bankcard and was driven by technological advancements. But it really took off with the COVID pandemic when consumers and retailers were reluctant to handle potentially infected notes and coins.

The federal government last week underscored its recognition of this trend by unveiling reforms to regulate digital payment providers. Treasurer Jim Chalmers said:


From big cities to remote rural corners the shift towards digital payments is evident. This raises the question, is a cashless society inevitable?

The phenomenal growth of the digital payments​

The convenience of digital transactions has become irresistible for consumers and businesses and has led to the sector eclipsing traditional payment methods.

The relentless march of technology has produced myriad innovative platforms from mobile wallets to buy-now-pay-later (BNPL) schemes, each vying for a piece of this burgeoning market.

A recent report by the Australian Banking Association paints a vivid picture of the digital payment industry’s explosive expansion.

The use of digital wallet payments on smartphones and watches has soared from $746 million in 2018 to over $93 billion in 2022. Cash only accounts for 13% of consumer payments in Australia as of the end of 2022, a stark contrast to 70% in 2007.

Australian Banking Association

Digital wallets are popular with most age groups. Young Australians aged between 18 and 29 are leading the pack, with two thirds using digital wallets to pay for goods and services.

About 40% of Australians are comfortable leaving home without their actual wallets or even credit or debit cards, as long as they have their mobile devices with digital wallets.

The astonishing speed at which Australians have embraced digital payments places the country among the top users of cashless payments globally, surpassing the United States and European countries.

Digital wallets are not the only players in this space. The use of BNPL products is also growing rapidly in Australia, which was where many of the large-scale products in this category started.

Stripe and University of Sydney.

The Australian Securities and Investment Commission (ASIC) reports the total value of all BNPL transactions increased by 79% in the 2018–19 financial year. This continues into 2022 with an annual growth beyond 30% according to the Reserve Bank of Australia (RBA).

PayID and PayPal payments are also claiming their shares in this space.

Are government regulations necessary?​

The government’s planned regulation of the system, contained in amendments to the Reforms to the Payment Systems (Regulation) Act 1998, is a big step towards establishing a secure and trustworthy cashless society in Australia.

It will subject BNPL and digital wallet service providers like Apple Pay and Google Pay to the same oversight by the RBA as traditional credit and debit cards.

The regulations will require providers meet clear standards for security measures, data protection and dispute resolution to give Australians confidence their funds and personal information are safeguarded.

With increasing concern over cyber attacks, the regulations will help reduce the risk of fraudulent activities and money laundering and help identify suspicious transactions, maintaining the integrity of the financial system.

Also, regulation will promote fair competition and market stability by levelling the playing field and by preventing monopolies.

Apple says it doesn’t need to be regulated because it only provides the architecture to deliver a service. Shutterstock

While banks support the forthcoming regulation, new market players are less positive. For example, Apple Pay says it is merely providing technical architecturerather than payment services.

The current regulatory debate is not new. When credit cards made their debut in Australia in the early 1970s, there were hardly any safeguards for consumers. This led to card users being hit with high interest rates on money owed, sneaky fees and aggressive marketing tactics.

Consequently, regulations were introduced to hold card providers to a standard of responsible behaviour. Today, they must openly disclose interest rates, fees and charges, and follow stringent guidelines in advertising their products and services.

Regulating digital wallet providers strikes a crucial balance between innovation and accountability, ensuring life-changing technology continues to serve the public interest.

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

The blend of technological advancements, changing consumer preferences and regulatory adaptations has set the stage for this transformation. The new regulations will help Australians navigate this transition more confidently.

This article was first published on The Conversation, and was written by Angel Zhong, Associate Professor of Finance, RMIT University

Gotta wonder if its banks & pro cashless pushers starting these rumours & how accurate are the stats anyway?
Always should be given a choice!
Hell i dont even know how (or trust to) use a digital wallet, tho
can do internet banking etc but still also use cash quite regularly!
And absolutely dreading the day I get scammed or hacked because of this stupid technology that not everyone understands & even those that do can become a victim of cyber theft!

 

[Cheezil]

How much extra are we going to be paying, to use this shite.

Always some idiot that thinks they are more intelligent than everyone else trying to get their hands on those at the bottom of the food chain's hard earned money! Low income earners, the elderly & harder working people are the ones that struggle the most thru all of this stuff

 

[Ricki]

We just watched a documentary about solar storms and the scientists following these storms all warn how these storms will disrupt all electronics on the planet as well as the satellites circling us.
Every one of these scientists recommend having a large amount of cash on hand as technology won't be working.
We use a lot of cards but will be keeping enough cash on hand to buy all necessities.

 

[Alison Davis]

It’s hard to understand why people are so willing to give us using cash. We’ll be sorry! I use both cash for most things but a card for grocery shopping.

 

[IAN3005]

Heaven help charities, small club raffles and other small payments which require cash! Nobody seems to give them a thought.

Not at all.... they will be armed with mobile/Wifi EFTPOS machines....

 

[David Otto]

When was the last time you used cash? For many Australians using cash or even swiping a card has become a rare event.

The move towards a cashless society started 50 years ago with the introduction of the Bankcard and was driven by technological advancements. But it really took off with the COVID pandemic when consumers and retailers were reluctant to handle potentially infected notes and coins.

The federal government last week underscored its recognition of this trend by unveiling reforms to regulate digital payment providers. Treasurer Jim Chalmers said:


From big cities to remote rural corners the shift towards digital payments is evident. This raises the question, is a cashless society inevitable?

The phenomenal growth of the digital payments​

The convenience of digital transactions has become irresistible for consumers and businesses and has led to the sector eclipsing traditional payment methods.

The relentless march of technology has produced myriad innovative platforms from mobile wallets to buy-now-pay-later (BNPL) schemes, each vying for a piece of this burgeoning market.

A recent report by the Australian Banking Association paints a vivid picture of the digital payment industry’s explosive expansion.

The use of digital wallet payments on smartphones and watches has soared from $746 million in 2018 to over $93 billion in 2022. Cash only accounts for 13% of consumer payments in Australia as of the end of 2022, a stark contrast to 70% in 2007.

Australian Banking Association

Digital wallets are popular with most age groups. Young Australians aged between 18 and 29 are leading the pack, with two thirds using digital wallets to pay for goods and services.

About 40% of Australians are comfortable leaving home without their actual wallets or even credit or debit cards, as long as they have their mobile devices with digital wallets.

The astonishing speed at which Australians have embraced digital payments places the country among the top users of cashless payments globally, surpassing the United States and European countries.

Digital wallets are not the only players in this space. The use of BNPL products is also growing rapidly in Australia, which was where many of the large-scale products in this category started.

Stripe and University of Sydney.

The Australian Securities and Investment Commission (ASIC) reports the total value of all BNPL transactions increased by 79% in the 2018–19 financial year. This continues into 2022 with an annual growth beyond 30% according to the Reserve Bank of Australia (RBA).

PayID and PayPal payments are also claiming their shares in this space.

Are government regulations necessary?​

The government’s planned regulation of the system, contained in amendments to the Reforms to the Payment Systems (Regulation) Act 1998, is a big step towards establishing a secure and trustworthy cashless society in Australia.

It will subject BNPL and digital wallet service providers like Apple Pay and Google Pay to the same oversight by the RBA as traditional credit and debit cards.

The regulations will require providers meet clear standards for security measures, data protection and dispute resolution to give Australians confidence their funds and personal information are safeguarded.

With increasing concern over cyber attacks, the regulations will help reduce the risk of fraudulent activities and money laundering and help identify suspicious transactions, maintaining the integrity of the financial system.

Also, regulation will promote fair competition and market stability by levelling the playing field and by preventing monopolies.

Apple says it doesn’t need to be regulated because it only provides the architecture to deliver a service. Shutterstock

While banks support the forthcoming regulation, new market players are less positive. For example, Apple Pay says it is merely providing technical architecturerather than payment services.

The current regulatory debate is not new. When credit cards made their debut in Australia in the early 1970s, there were hardly any safeguards for consumers. This led to card users being hit with high interest rates on money owed, sneaky fees and aggressive marketing tactics.

Consequently, regulations were introduced to hold card providers to a standard of responsible behaviour. Today, they must openly disclose interest rates, fees and charges, and follow stringent guidelines in advertising their products and services.

Regulating digital wallet providers strikes a crucial balance between innovation and accountability, ensuring life-changing technology continues to serve the public interest.

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

The blend of technological advancements, changing consumer preferences and regulatory adaptations has set the stage for this transformation. The new regulations will help Australians navigate this transition more confidently.

This article was first published on The Conversation, and was written by Angel Zhong, Associate Professor of Finance, RMIT University

What happens when large networks crash, we all know this happens more often than we like. Does the whole country stop and who wears the cost of this? Research shows that some overseas countries tried this on, and community backlash forced their hand to revert back to cash as an alternative way of payment. Beware!

 

[David Otto]

Not at all.... they will be armed with mobile/Wifi EFTPOS machines....

Really!!!

 

[IAN3005]

Really!!!

Yep... believe it or not.....

 

[David Otto]

When was the last time you used cash? For many Australians using cash or even swiping a card has become a rare event.

The move towards a cashless society started 50 years ago with the introduction of the Bankcard and was driven by technological advancements. But it really took off with the COVID pandemic when consumers and retailers were reluctant to handle potentially infected notes and coins.

The federal government last week underscored its recognition of this trend by unveiling reforms to regulate digital payment providers. Treasurer Jim Chalmers said:


From big cities to remote rural corners the shift towards digital payments is evident. This raises the question, is a cashless society inevitable?

The phenomenal growth of the digital payments​

The convenience of digital transactions has become irresistible for consumers and businesses and has led to the sector eclipsing traditional payment methods.

The relentless march of technology has produced myriad innovative platforms from mobile wallets to buy-now-pay-later (BNPL) schemes, each vying for a piece of this burgeoning market.

A recent report by the Australian Banking Association paints a vivid picture of the digital payment industry’s explosive expansion.

The use of digital wallet payments on smartphones and watches has soared from $746 million in 2018 to over $93 billion in 2022. Cash only accounts for 13% of consumer payments in Australia as of the end of 2022, a stark contrast to 70% in 2007.

Australian Banking Association

Digital wallets are popular with most age groups. Young Australians aged between 18 and 29 are leading the pack, with two thirds using digital wallets to pay for goods and services.

About 40% of Australians are comfortable leaving home without their actual wallets or even credit or debit cards, as long as they have their mobile devices with digital wallets.

The astonishing speed at which Australians have embraced digital payments places the country among the top users of cashless payments globally, surpassing the United States and European countries.

Digital wallets are not the only players in this space. The use of BNPL products is also growing rapidly in Australia, which was where many of the large-scale products in this category started.

Stripe and University of Sydney.

The Australian Securities and Investment Commission (ASIC) reports the total value of all BNPL transactions increased by 79% in the 2018–19 financial year. This continues into 2022 with an annual growth beyond 30% according to the Reserve Bank of Australia (RBA).

PayID and PayPal payments are also claiming their shares in this space.

Are government regulations necessary?​

The government’s planned regulation of the system, contained in amendments to the Reforms to the Payment Systems (Regulation) Act 1998, is a big step towards establishing a secure and trustworthy cashless society in Australia.

It will subject BNPL and digital wallet service providers like Apple Pay and Google Pay to the same oversight by the RBA as traditional credit and debit cards.

The regulations will require providers meet clear standards for security measures, data protection and dispute resolution to give Australians confidence their funds and personal information are safeguarded.

With increasing concern over cyber attacks, the regulations will help reduce the risk of fraudulent activities and money laundering and help identify suspicious transactions, maintaining the integrity of the financial system.

Also, regulation will promote fair competition and market stability by levelling the playing field and by preventing monopolies.

Apple says it doesn’t need to be regulated because it only provides the architecture to deliver a service. Shutterstock

While banks support the forthcoming regulation, new market players are less positive. For example, Apple Pay says it is merely providing technical architecturerather than payment services.

The current regulatory debate is not new. When credit cards made their debut in Australia in the early 1970s, there were hardly any safeguards for consumers. This led to card users being hit with high interest rates on money owed, sneaky fees and aggressive marketing tactics.

Consequently, regulations were introduced to hold card providers to a standard of responsible behaviour. Today, they must openly disclose interest rates, fees and charges, and follow stringent guidelines in advertising their products and services.

Regulating digital wallet providers strikes a crucial balance between innovation and accountability, ensuring life-changing technology continues to serve the public interest.

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

The blend of technological advancements, changing consumer preferences and regulatory adaptations has set the stage for this transformation. The new regulations will help Australians navigate this transition more confidently.

This article was first published on The Conversation, and was written by Angel Zhong, Associate Professor of Finance, RMIT University

 

[David Otto]

Yep... believe it or not...

 

[David Otto]

So, the people having a garage sale once in a blue moon will have to get one of these devices so they can have their sale........I don't think so

 

[Robbo3006]

We just watched a documentary about solar storms and the scientists following these storms all warn how these storms will disrupt all electronics on the planet as well as the satellites circling us.
Every one of these scientists recommend having a large amount of cash on hand as technology won't be working.
We use a lot of cards but will be keeping enough cash on hand to buy all necessities.

And when we get there, they'll say , what's that? Cash! What's cash?

 

[Tipsy]

When was the last time you used cash? For many Australians using cash or even swiping a card has become a rare event.

The move towards a cashless society started 50 years ago with the introduction of the Bankcard and was driven by technological advancements. But it really took off with the COVID pandemic when consumers and retailers were reluctant to handle potentially infected notes and coins.

The federal government last week underscored its recognition of this trend by unveiling reforms to regulate digital payment providers. Treasurer Jim Chalmers said:


From big cities to remote rural corners the shift towards digital payments is evident. This raises the question, is a cashless society inevitable?

The phenomenal growth of the digital payments​

The convenience of digital transactions has become irresistible for consumers and businesses and has led to the sector eclipsing traditional payment methods.

The relentless march of technology has produced myriad innovative platforms from mobile wallets to buy-now-pay-later (BNPL) schemes, each vying for a piece of this burgeoning market.

A recent report by the Australian Banking Association paints a vivid picture of the digital payment industry’s explosive expansion.

The use of digital wallet payments on smartphones and watches has soared from $746 million in 2018 to over $93 billion in 2022. Cash only accounts for 13% of consumer payments in Australia as of the end of 2022, a stark contrast to 70% in 2007.

Australian Banking Association

Digital wallets are popular with most age groups. Young Australians aged between 18 and 29 are leading the pack, with two thirds using digital wallets to pay for goods and services.

About 40% of Australians are comfortable leaving home without their actual wallets or even credit or debit cards, as long as they have their mobile devices with digital wallets.

The astonishing speed at which Australians have embraced digital payments places the country among the top users of cashless payments globally, surpassing the United States and European countries.

Digital wallets are not the only players in this space. The use of BNPL products is also growing rapidly in Australia, which was where many of the large-scale products in this category started.

Stripe and University of Sydney.

The Australian Securities and Investment Commission (ASIC) reports the total value of all BNPL transactions increased by 79% in the 2018–19 financial year. This continues into 2022 with an annual growth beyond 30% according to the Reserve Bank of Australia (RBA).

PayID and PayPal payments are also claiming their shares in this space.

Are government regulations necessary?​

The government’s planned regulation of the system, contained in amendments to the Reforms to the Payment Systems (Regulation) Act 1998, is a big step towards establishing a secure and trustworthy cashless society in Australia.

It will subject BNPL and digital wallet service providers like Apple Pay and Google Pay to the same oversight by the RBA as traditional credit and debit cards.

The regulations will require providers meet clear standards for security measures, data protection and dispute resolution to give Australians confidence their funds and personal information are safeguarded.

With increasing concern over cyber attacks, the regulations will help reduce the risk of fraudulent activities and money laundering and help identify suspicious transactions, maintaining the integrity of the financial system.

Also, regulation will promote fair competition and market stability by levelling the playing field and by preventing monopolies.

Apple says it doesn’t need to be regulated because it only provides the architecture to deliver a service. Shutterstock

While banks support the forthcoming regulation, new market players are less positive. For example, Apple Pay says it is merely providing technical architecturerather than payment services.

The current regulatory debate is not new. When credit cards made their debut in Australia in the early 1970s, there were hardly any safeguards for consumers. This led to card users being hit with high interest rates on money owed, sneaky fees and aggressive marketing tactics.

Consequently, regulations were introduced to hold card providers to a standard of responsible behaviour. Today, they must openly disclose interest rates, fees and charges, and follow stringent guidelines in advertising their products and services.

Regulating digital wallet providers strikes a crucial balance between innovation and accountability, ensuring life-changing technology continues to serve the public interest.

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

The blend of technological advancements, changing consumer preferences and regulatory adaptations has set the stage for this transformation. The new regulations will help Australians navigate this transition more confidently.

This article was first published on The Conversation, and was written by Angel Zhong, Associate Professor of Finance, RMIT University

I will stay using cash or barter and the digital ID can also go to hell

 

[MaccaMan]

Heaven help charities, small club raffles and other small payments which require cash! Nobody seems to give them a though

When was the last time you used cash? For many Australians using cash or even swiping a card has become a rare event.

The move towards a cashless society started 50 years ago with the introduction of the Bankcard and was driven by technological advancements. But it really took off with the COVID pandemic when consumers and retailers were reluctant to handle potentially infected notes and coins.

The federal government last week underscored its recognition of this trend by unveiling reforms to regulate digital payment providers. Treasurer Jim Chalmers said:


From big cities to remote rural corners the shift towards digital payments is evident. This raises the question, is a cashless society inevitable?

The phenomenal growth of the digital payments​

The convenience of digital transactions has become irresistible for consumers and businesses and has led to the sector eclipsing traditional payment methods.

The relentless march of technology has produced myriad innovative platforms from mobile wallets to buy-now-pay-later (BNPL) schemes, each vying for a piece of this burgeoning market.

A recent report by the Australian Banking Association paints a vivid picture of the digital payment industry’s explosive expansion.

The use of digital wallet payments on smartphones and watches has soared from $746 million in 2018 to over $93 billion in 2022. Cash only accounts for 13% of consumer payments in Australia as of the end of 2022, a stark contrast to 70% in 2007.

Australian Banking Association

Digital wallets are popular with most age groups. Young Australians aged between 18 and 29 are leading the pack, with two thirds using digital wallets to pay for goods and services.

About 40% of Australians are comfortable leaving home without their actual wallets or even credit or debit cards, as long as they have their mobile devices with digital wallets.

The astonishing speed at which Australians have embraced digital payments places the country among the top users of cashless payments globally, surpassing the United States and European countries.

Digital wallets are not the only players in this space. The use of BNPL products is also growing rapidly in Australia, which was where many of the large-scale products in this category started.

Stripe and University of Sydney.

The Australian Securities and Investment Commission (ASIC) reports the total value of all BNPL transactions increased by 79% in the 2018–19 financial year. This continues into 2022 with an annual growth beyond 30% according to the Reserve Bank of Australia (RBA).

PayID and PayPal payments are also claiming their shares in this space.

Are government regulations necessary?​

The government’s planned regulation of the system, contained in amendments to the Reforms to the Payment Systems (Regulation) Act 1998, is a big step towards establishing a secure and trustworthy cashless society in Australia.

It will subject BNPL and digital wallet service providers like Apple Pay and Google Pay to the same oversight by the RBA as traditional credit and debit cards.

The regulations will require providers meet clear standards for security measures, data protection and dispute resolution to give Australians confidence their funds and personal information are safeguarded.

With increasing concern over cyber attacks, the regulations will help reduce the risk of fraudulent activities and money laundering and help identify suspicious transactions, maintaining the integrity of the financial system.

Also, regulation will promote fair competition and market stability by levelling the playing field and by preventing monopolies.

Apple says it doesn’t need to be regulated because it only provides the architecture to deliver a service. Shutterstock

While banks support the forthcoming regulation, new market players are less positive. For example, Apple Pay says it is merely providing technical architecturerather than payment services.

The current regulatory debate is not new. When credit cards made their debut in Australia in the early 1970s, there were hardly any safeguards for consumers. This led to card users being hit with high interest rates on money owed, sneaky fees and aggressive marketing tactics.

Consequently, regulations were introduced to hold card providers to a standard of responsible behaviour. Today, they must openly disclose interest rates, fees and charges, and follow stringent guidelines in advertising their products and services.

Regulating digital wallet providers strikes a crucial balance between innovation and accountability, ensuring life-changing technology continues to serve the public interest.

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

The blend of technological advancements, changing consumer preferences and regulatory adaptations has set the stage for this transformation. The new regulations will help Australians navigate this transition more confidently.

This article was first published on The Conversation, and was written by Angel Zhong, Associate Professor of Finance, RMIT University

Australians are known to be some of the most laid-back people in the world. So laid back they have NFI of The Great Reset, WHO & WEF. The sheer thought that the loss of cash '...is just progression - get on board!' says everything about the sheer ignorance (a percentage of Australians have) of the bigger picture. No, this is not about young and old. This is about CONTROL people... Technology goes down, hackers are getting increasingly smarter with any new technology implemented. Cash is king. Use it or lose it...