The move to a cashless society isn't just a possibility, it's well underway
The move towards a cashless society started 50 years ago with the introduction of the Bankcard and was driven by technological advancements.
- 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.
- This raises the question, is a cashless society inevitable?
The phenomenal growth of the digital payments
- 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.
- 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.
Are government regulations necessary?
- 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.
- Consequently, regulations were introduced to hold card providers to a standard of responsible behaviour.
- The new regulations will help Australians navigate this transition more confidently.