Will cash be dead in a decade?
Despite the fact that Australians withdraw over $11 billion from ATMs every month, new research shows that we are heading for a completely cashless society within the next 10 years.
With phone and tablet transactions becoming more of an everyday occurrence, the days of saving your coins in your piggy bank could be numbered.
The International Journal of Electronic Business states that the global economy is moving towards a completely cash free phase due to the amount of financial transactions being carried out using mobile electronic devices. It’s believed that this will continue to grow, leading to an eventual death for “real money” as we know it.
Australia is a nation with over 50 million payment cards amongst 23 million people. Already, 82 per cent of Australian payments are made in non-cash dollars.
Bjorn Behrendt from Mint Payments Limited says that rather being a shock, it is actually a necessary evolution that offers daily benefits.
“Many Australians are still very wary of relinquishing cash control. However what needs to be noted is the various ways this payment evolution will improve our lives,” he said.
Mr Behrendt outlines the four main benefits of our future cashless society:
Speed – A contactless card transaction can occur much faster than handing over cash.
Safety – No need to carry large amounts of cash around when you can have your money securely stored on your card and protected by a pin number.
Convenience – We tend to always have our mobile phones with us, which means you no longer have to remember to take your wallet everywhere you go. Plus, the lines at the store will be shorter which makes everyone happy.
Price – The cost for printing money and minting coins is paid for through your taxes, so cutting out the need for cash means your tax dollars can be used for other things that could benefit you in various ways.
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