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Australia Will Be Nearly Completely Cashless In Three Years, New Research Shows

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Australia Will Be Nearly Completely Cashless In Three Years, New Research Shows

The days of trying to find some coins for the parking meter or cash for a tip at a restaurant could be numbered.

New research suggests Australia could become nearly a completely cashless society within the next three years.

Fintech company FIS has estimated in its sixth annual Global Payments Report that physical cash could be a thing of the past for pretty much everyone.

Around 8.3 per cent of point-of-sale transactions last year were done using cash, however FIS reckons this will be reduced to around 2.1. per cent by 2024.

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It's no surprise that cash was used limitedly in 2020 considering everyone was told that it could be an easy method of spreading the coronavirus.

Credit: vagawi (Flickr)
Credit: vagawi (Flickr)

Australia is already moving towards the cashless future as the global average for using physical money was around 20.5 per cent.

"COVID-19 is accelerating the pace of cash's decline faster than even the most bullish projections," the report states.

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

If the predictions are right, then Australia would be the fourth most cashless society in the world, behind Sweden, Denmark and Hong Kong.

The move would certainly be a massive win for taxation authorities.

The Australian Tax Office said earlier this week cash deals between businesses are costing the community up to $50 billion in unpaid taxes.

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Credit: Pixabay
Credit: Pixabay

Phil Pomford, General Manager APAC, Worldpay Merchant Solutions at FIS, said: "Australian consumers are ushering in a new dawn of commerce as they embrace modern ways to pay, consume and engage with businesses.

"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."

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Of course you can't make society become cashless; there will still be notes and coins produced en masse every year and it plays a good role in our community.

However, when it comes to the simple tap-n-go, it's easier, faster and doesn't require anything more than a rectangle of plastic.

Featured Image Credit: Pixabay

Topics: Australia

Stewart Perrie
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