Cash now represents only a quarter of daily transactions, with consumers increasingly favoring electronic payments.
This decline is due to the proliferation of tap-and-go systems. Around 80 per cent of point-of-sale transactions are now done via tap and go, which Governor Lowe attributes to the deployment of new technology in payment terminals and “the willingness of Australians to try something different”.
Mobile payments, particularly through wearable devices, have also been rapidly adopted by Australians.
However, Governor Lowe believes that electronic money will always have a place in the economy.
“My sense is that in the future, cash will be the payment instrument that you use in the event of a disaster or an electronic system failure,” Governor Lowe said in a speech at the Summit of Australian payments network.
“I think most of us who use instant payments all the time still have cash in our wallets… it would be nice if they didn’t need it, if the whole system was electronic, and Ultimately, this is going to be the most effective solution for Australians.
But even if cash persists, checks are set to disappear completely.
“Over the past year, the number of checks issued fell by a further 19 percent and the value of checks issued fell by more than 30 percent, as the real estate industry continued to shift toward electronic settlements of property,” said Governor Lowe. said.
“At some point it will be appropriate to end the control system, and that time is getting closer. But before that happens, it’s important that alternative payment methods are available for those who rely on checks.
“I see the end of the check system, I don’t see the end of the cash payment system.”
