RBA data doesn’t support Cashless Australia predictions
USA based FIS issued a report predicting Australia would be largely cashless by 2024. FIS specialise in merchant payment solutions and supporting and securing cashless transactions. The FIS findings are not supported by real world data or readily available market information, for example:
- Last month, the Reserve Bank of Australia reported that, while cash’s share of payments has fallen, cash withdrawals are not plummeting, indicating an ongoing support for cash. 34.7 million ATM withdrawals were made in December 2020 worth A$9 billion. This chart is taken from RBA’s ATM raw data here.
- The Bank of Canada reported (in December 2020) that Tap and Go & mobile phone payments don’t lead to a cashless society. What is important to consumer payment choices is how far people have to travel to get cash. The Bank of Canada report said: “…the critical factor was the distance people had to travel to withdraw cash, with bank branch closures and shrinking ATM networks likely significant drivers.”
- Woolworths told Australians this week that: “We have listened to your feedback and are now accepting both cash and card payments.” This was in response to many Woolies metro supermarkets going ‘cashless’ during 2020 in response to COVID19 transmission concerns.
“Consumers don’t want a cashless society, banks and merchant payments vendors want to push the idea of a cashless society for their own benefit and profits,” said Jason Bryce, consumer affairs journalist and spokesperson for the Cash Welcome campaign.
“Woolworths listened to Australians and heard them say cash is still king,
The Bank of Canada findings indicated that access to cash is what determines whether people have cash. If there are no ATMs or bank branches in a shopping centre or suburb, consumers are less likely to pay with cash.
“Cash is the most reliable way to pay. I always use cash and never rely on a card and I never use my phone to pay,” said Jason Bryce
“More than 10,000 Aussies have signed my petition calling for government to legislate to ensure our right to access and use cash.
“New Zealand, Japan, the USA, Europe have all oved to protect their citizen’s right to access and use cash. It’s time for Australia to protect cash,” said Mr Bryce.
“Without cash in our pockets or without supermarkets and retailers that accept cash, consumers can be left without food and essentials.”