Cash payments are fast becoming a thing of the past. New research shows that the ease and security of waving a card, phone or even your wrist instead of carrying around cash is more popular than ever.
Detailed research by Colmar Brunton, commissioned for the Australian Taxation Office (ATO), reveals that only one in five Australians prefer using cash for purchases.
ATO Assistant Commissioner Matthew Bambrick said, “It’s clear that there’s been a cultural shift towards cashless payments across the board, even for smaller amounts. The research shows that cash is only the preferred payment method for transactions under $5, and for anything over $50, the vast majority of people want the ease and security of an electronic payment. Where we once saw people walk into car dealerships with cash in hand, cash has now been relegated to the morning coffee.”
The trend towards cashless payments is particularly evident among people under 35, who carry the least amount of cash. Those aged 18-24 are also half as likely to request a discount for paying in cash compared to the general population.
Bambrick said that the move by the younger generation away from seeking an “under the table” discount is really encouraging.
“It indicates that a once common practice is now rare as people enjoy the benefits of being cash-free,” he said.
The research shows consumers are drawn by the convenience of cashless payments, which remove the unnecessary step of withdrawing cash and carrying it around when making any transaction. Tap and Go payments have also been game changing, bringing about faster transaction times.
Additionally, cashless payments boast security benefits, by removing the risks of carrying cash and protecting consumer rights through easier record keeping.
“The business community knows what people want, and 86 per cent of businesses agree that most customers expect to be able to pay via electronic means,” Bambrick said. “This research indicates that the trend away from cash will only gather pace. This is more than a passing fad. This is the way of the future.”
“Particularly with the decline in minimum transaction amounts, we are likely to see more and more people carrying little or no cash at all. Most businesses already know this and we expect the rest will be there soon,” Bambrick concluded.
Extracted from Inside Small Business