New data from financial payment company FIS has forecast that in the next three years cash payments will fall to just 2.1 per cent of all transactions.
While cash made up more than 20 per cent of transactions worldwide in 2002, cash transactions fell by 4.4 per cent globally between 2019 and 2020.
“The pandemic accelerated the decline of cash by over three years, exceeding in 2020 our previous projection for 2023,” the report states.
This would put Australia in fourth position as the most cash averse economy, behind Sweden, Denmark and Hong Kong.
“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.”
Despite ranking in fourth place for being a cash adverse society, separate research by Money Transfer shows only the minority think going completely cashless ‘would be a great decision for their country.’
The results show that Australia ranks 10th, with only 35 per cent wanting to go entirely cashless, despite the majority saying they have paid with cash less often since the COVID-19 outbreak.
“The argument for a cashless society has been around for a while, but the rapid rise of the coronavirus crisis has intensified the debate again amid concerns about banknotes and coins transmitting the virus,” Money Transfer state.
“In addition to this, the increasing decline of high street bank branches and ATMs has made the possibility of a cashless society in the next few years more likely than ever before.”
India is the country most in favour of a cashless society, followed by Malaysia and the United Arab Emirates.
Just 24 per cent of Americans think going entirely cashless would be a good thing for their country.
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