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Ditching cash for digital

By Cameron Micallef · November 04 2019
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egg

Invest

Ditching cash for digital

By Cameron Micallef
November 04 2019
Reading:
egg
Credit card

Ditching cash for digital

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By Cameron Micallef · November 04 2019
Reading:
egg
Credit card

Aussies are one step ahead of government plans to phase out large cash transactions, increasingly making the switch from cash to plastic.

According to a survey from comparison site Finder, 23 per cent of Australians no longer carry cash.

For those who are still carrying notes in their wallet, the average amount held is just $59.40.

Personal finance expert Kate Browne has said that as society becomes cashless, the need for wallets may soon become non-existent.

"Cards are the new cash. With tap and pay accepted almost everywhere these days, physical currency is no longer necessary,” she outlined. 

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Between digital wallets on smartphones and loyalty card apps, Ms Browne said “there's increasingly no need for a wallet”. 

“Eventually we'll be able to pay for everything with a smart device,” she said.

The survey also revealed that around 21 per cent of Australians hold between $1 and $10 at any given time, while a further 9 per cent carry between $11 and $20.

Millennials are twice as likely (24 per cent) to not carry cash as Baby Boomers (11 per cent) .

Men have apparently been slower to react to a cashless society than women, carrying $74 on average compared with $44.90 for females.

RBA data has previously revealed that ATM withdrawals are declining nationwide, falling from 51.5 million in July 2017, to just 45.7 million in July 2019.

Ms Browne conceded that although the amount of cash Australians do carry has dropped, many people still like to have a few coins or notes handy.

"At this stage, there are still situations where spare change doesn't go astray. We might want to grab sausage sizzle on the weekend or buy something from a cash-only business,” she offered.

How to ditch your wallet

As Australia moves away from the traditional wallet, Finder has offered up the following tips:

Make sure your card and device are compatible: Most banks now offer debit and credit cards that are compatible with digital wallets. If your card isn't compatible, switch to a lender that offers the technology. Make sure your smartphone is compatible, too.

Install a digital wallet app: Once you have the right card and phone, download the relevant app (Apple Pay, Samsung Pay or Google Pay), follow the prompts and connect your card.

Ditch your cards: If you carry a stack of loyalty cards in your wallet, you can now store them digitally rather than carrying them around. Apps like Stocard and Key Ring allow users to add their loyalty cards and keep them all in one place.

Wondering what the soon to be implemented $10,000 cash payment limit law will actually mean? Find out more here.

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About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

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About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

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