Will Australia become a cashless society?
If things keep going the way they’re going, don’t expect to be hearing the questions “cash or credit” too many times in the future. As Australians increasingly choose debit cards and other electronic systems as their preferred method of payment, a cashless Australia seems less a possibility and more of an inevitability. But what does this mean for ordinary Australians?
We’ve taken a broad look at some of the impacts Australians can expect as we move towards a cashless society, so you understand what this means for you and your money.
Increased convenience
The ability to pay for something with a tap of a card is increasingly becoming a part of everyday life and as this becomes more commonplace it will be an expectation for businesses to facilitate this. Adjunct Professor with the Queensland University of Technology Noel Whittaker says, “I think it is a great thing – especially if it would force small businesses to put more money into the till and put less in their pockets. They don’t understand, that reducing the sales by taking cash from the till reduces the value of the business. Also, cash has a cost for handling, and balancing, and banking.”
Increase in credit card fraud
As anyone who’s ever had their money skimmed from an ATM would agree – the fact that we’re not carrying piles of cash around in our day-to-day lives may make us feel more secure, but doesn’t necessarily mean that our money is safer. As we increasingly move away from cash it’s not unreasonable to expect cyber criminals to try and exploit this, which potentially leaves us exposed to fraud. The onus is on lawmakers, businesses, and banks to evolve with this move and create technological safeguards, and for consumers to be vigilant and cautious with their purchases.
Budgeting becomes more important
I’m sure we’d all agree there’s quite a difference between paying for something by tapping a card against a machine and physically having to take the cash out of your wallet and give it to a cashier. As we move towards a cashless society and transactions become less materially obvious it’s important for consumers to be wary of their bank balances and budget accordingly. This will be especially important for younger generations who grow up in a world where cash is seldom.
Conclusions
It’s important to be conscious of the effects of a cashless society and what this means for the day to day transactions you perform with your personal finances. By understanding these changes you will be able to avoid the risks and enjoy the advantages of living in a cashless Australia.
Noel Whittaker is a best-selling author, finance and investment expert, radio broadcaster, newspaper columnist and speaker. One of the world’s foremost authorities on personal finance, Noel recently released The Retirement Living Handbook. Co-authored with Rachel Lane, this handbook provides expert insight into retirement communities and is available here.
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