Is it all over for cash in Australia? A new report says the days are numbered for coins and bills with the Australian economy expected to be 98 per cent cashless by 2024.
The 2021 Global Payments Report highlights the latest global payment trends with projections for Australian eCommerce turnover to increase by 46 per cent from $US37bn to $US54bn within three years.
The report says the use of mobile wallets is projected to double at the point of sale over the next four years.
The COVID pandemic certainly moved the needle and accelerated the move away from cash as we embraced digital commerce.
Consumers around the world preferred frictionless, digital payments at POS (point of sale) with Australia one of the leading countries moving away from cash.
Australia has always been considered an early adopter of new and alternative payment technologies including Buy Now Pay Later (BNPL) options which continues to claim market share and is on track to more than double from 9.5 per cent in 2020 to almost 20 per cent in 2024.
According to the research, cash payments for in-store purchases are forecast to slump from 8.3 per cent in 2020 to just 2.1 per cent in 2024, making Australia the fourth most cash averse country behind Sweden (0.4 per cent), Denmark (0.8 per cent) and Hong Kong (1.6 per cent).
“Australian consumers are ushering in a new dawn of commerce as they embrace modern ways to pay, consume and engage with businesses,” said Phil Pomford, General Manager APAC, Worldpay Merchant Solutions at FIS.
“As Australia heads towards a predominantly cashless payments market, we must focus on financial inclusion.
“Important parts of the economy continue to rely on cash, such as charity donations and restaurant tip jars.
“Further, fintechs and regulators need to collaborate to build new frameworks that allow for this rapid shift and use technology to boost financial inclusion for underserved communities.”