The evolution toward a cashless society is not just a theory, but an inevitable reality set to revolutionize the financial landscape sooner than many anticipate, opines one finance expert. As the convenience of digital transactions outpaces traditional means of payment, the drive towards this revolution will continue to increase in force.
Dr. Angel Zhong, a finance savant at RMIT University, maintains that the transition is so brisk we could see Australia become virtually cashless by the year 2025, a prediction that earned similar assent from several industry connoisseurs.
There is, however, no cause for alarm for those who favor banknotes, says Dr. Zhong. She reassures that while people may decrease their physical use of cash, its value will not be compromised.
Corroborating this shift in our fiscal customs, only 13% of transactions utilize hard cash – a stark contrast to the 30% in 2019. The Covid-19 pandemic and the health restrictions that came with it hastened this shift, causing a significant amplification in the number of businesses and households migrating to online transactions.
This transformation is no more evident than the recent announcement from Macquarie Bank – they are poised to go completely cashless by November 2024. Despite this bold move, the ‘big four’ Australian banks do not envision removing cash distribution entirely, perhaps acknowledging the demographic still holding onto old practices.
Inconveniently, the acceleration towards a digital world seems to have overlooked some vital considerations – internet shortcomings in regional and remote areas, and the preference for cash by the elderly, the vulnerable, and those on lower incomes. There’s a tangible apprehension that these groups could be left in the wake of this swift fiscal evolution.
However, Dr. Zhong underscores that a significant initiative to reassure these individuals is necessary. Recognizing these fears, she advocates for more comprehensive technologic education and support to ensure no one lags in the electronic financial age.
Concerns are heightened in the regional corners of the country where dodgy internet access often forces reliance on the ancient artifact of cash. Rural citizens and businesses, explains Rhiannon Druce, the general manager of Junee Licorice and Chocolate Factory, often opt for cash over fretting about unstable internet access.
The onus now lies with the government and internet providers to make certain that even the most remote corners of the nation can participate fully in our increasingly digital world. As Dr. Zhong articulates, “Innovation and technology must go hand-in-hand with infrastructure investments.” The transition to a cashless society is not just feasible but already underway. Promising or alarming, it is our forthcoming reality.
