Cashed Out

28th November 2020

Loose change is becoming a thing of the past.  With the surge in online shopping and the popularity of the digital wallet, a less-cash society was already well on its way in Australia.   With the pandemic, the trend has been propelled further by the hygiene conscious consumers.  Recent research by MyState Bank revealed  2 of 3 Australians have been using less cash since the COVID 19 pandemic.  A cashless society is coming quickly into focus.  And the trend is unlikely to slow down post-COVID with 67% of those consumers reporting they are likely to continue with their digital payment habits after the pandemic.

The cohort driving the digital payment trend is younger Australian consumers, with the Reserve Bank of Australia (RBA) reporting those aged between 18 and 49 were most likely to be low cash users. This group has rapidly adopted alternatives to cash such as ApplePay and Google, and online shopping.

In the same report from the RBA, they found that cash went from the king to second fiddle within a decade.

This has been good news for most, however, there are sections of society who will suffer from the lack of hard cash in circulation.  The Australian Bank Association (ABA) estimates that many elderly, low income and homeless people do not have debit linked cards, and still rely on a passbook or transaction account for day to day banking.  Up to 500,000 people do not bank online.  For these Australians, a tap and go society is not an option.

Although some reports predict a cashless society may be a reality in the next 2 years, most expect the transition will need to be slower, to accommodate those in our society who are vulnerable and will require the folding stuff for a little longer.  To download the full report from the RBA, click here