News

Australians ditching cash for cards

March 14, 2012

Australians are moving closer to a cashless society, said a news story at abc.net.au. The article included new statistics released by the Reserve Bank showing a marked decline in ATM cash withdrawals year over year.

Total withdrawals dropped by nearly 1 million in January compared to the same period in 2011; December 2011 withdrawals were down 1.7 million from the previous year. Transaction amounts also fell — to a record low of $89.53.

The trend reflects the rise of contactless payments, said Australian Retailers Association executive director, Russell Zimmerman.

"We know that Visa and MasterCard in particular are trying to get us to go to the contactless type payments, we know that EFTPOS is looking at it and intending to make a foray into that area. So it really doesn't surprise us to see that there's less cash and people turning to some kind of either credit or debit card," he said.

Zimmerman said cash remains a vital part of the modern economy, but Australians will probably move away from carrying money.

"I suspect if you projected far enough out you may see almost a removal of cash completely," he said. "Now I'm not suggesting that's going to happen in five or 10 years time, but over a period of time."

He said the cost could save retailers money.

"One of the areas that retailers will save their money on is obviously insurance. "You insure your cash probably three times — in the till, in the safe, and in transit … if you have your cash taken away from your premises by one of the security companies, well then obviously that cost will go down as they take less cash."

For more on this topic, visit our trends/statistics research center.