Australia CASHLESS by 2024 as digital payments grow in popularity

Australia will be almost completely cashless within three years, with the Covid-19 pandemic speeding up the decline of coins and notes.

Just 2.1 per cent of point-of-sale transactions in Australia will be cash in 2024, down from 8.3 per cent in 2020, predicts fintech company FIS.

‘Australian consumers are ushering in a new dawn of commerce as they embrace modern ways to pay, consume and engage with businesses,’ FIS’ Phil Pomford told Nine News.

Just 2.1 per cent of point-of-sale transactions in Australia will be cash in 2024, down from 8.3 per cent in 2020

FIS says Australia will be the fourth most cash averse economy in the world after Sweden, Denmark and Hong Kong

‘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.’

Globally, cash made up 20.5 per cent of transactions in 2020.

FIS says Australia will be the fourth most cash averse economy in the world after Sweden, Denmark and Hong Kong.

The decline was hastened by the pandemic, with cash transactions falling 4.4 per cent globally between 2019 and 2020.

‘Covid-19 is accelerating the pace of cash’s decline faster than even the most bullish projections,’ the sixth annual Global Payments Report states.

‘The pandemic accelerated the decline of cash by over three years, exceeding in 2020 our previous projection for 2023.’

The Australian Tax Office may celebrate the prediction, after it revealed on Monday that businesses doing cash deals are costing the community up to $50 billion in unpaid taxes.

Meanwhile, Australians’ online shopping is expected to grow from $47 billion in 2020 to almost $70 billion in 2024.

The decline was hastened by the pandemic, with cash transactions falling 4.4 per cent globally between 2019 and 2020

Reserve Bank governor Philip Lowe said in December that he doubted Australia would become a cashless society.

Electronic systems are not infallible and cash has an important role to play as an emergency payment method, he told a conference.

But he did admit cash could become rare.

The FIS report also predicts that Australia’s embrace of Buy Now Pay Later products will continue, with the market share projected to double from 9.5 per cent in 2020 to almost 20 per cent in 2024.