Australia will be a cashless society in just five years. This isn’t just speculation from the tech crowd or some wild prediction; it is the informed view of futurist and digital payments expert, University of NSW economics professor Richard Holden.
On my podcast this week, he says: “We are definitely moving towards a cashless society, probably in less than five years,” and the data backs him up.
Once commonplace, the humble banknote could be effectively extinct by 2030.Credit: Louie Douvis
In 2019, cash made up only 13 per cent of transactions in Australia, and today, some major banks report that cash is used in fewer than 4 per cent of their dealings. According to the FIS Worldpay Global Payments Report, Australia is projected to be 98 per cent cashless by 2024, and cash payments are expected to decline to just 2.1 per cent of in-store purchases.
Yet, despite these realities, we’re still lagging. We’re not doing enough to help older generations embrace digital payments, nor are we building the infrastructure needed for those in regional areas, and nor are we providing education and help for people who still feel more secure.
Banks and politicians often tread carefully around the issue, mindful of the large voter and customer base who still want the option of cash preserved.
But this caution may be delaying crucial discussions about how to better prepare and support those who will inevitably face this digital shift. Many are unaware of the full extent of cash’s decline or what’s likely to happen as it fades away – and what they can do.
Here are six insights into the cashless economy that I believe people need to understand better. Some may disagree, but I’m here to be an independent voice of literacy, education and reason.
When people think about fees in a cashless world, they often blame the banks.........