How will the cashless trend impact you?

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The march towards a cashless society is gaining momentum, with a rise in the use of a ‘digital wallet’ prompting more businesses to offer online only products and services.

According to research by ME, the trend in ‘going cashless’ is having a negative impact on tradies, waiters and charities who tend to rely on physical cash over digital cash.

61% of Australians surveyed preferred the need for digital cash. However, of the 61%, large numbers stated that the reason for moving away from physical cash had impacted their generosity.

ME Head of Deposits and Transactional Banking, Nic Emery said, “Inevitably, there will always be winners and losers as technology advances our ability to go cashless.”

He said, “Consumers are benefitting from tracking their spending and innovations that make their lives easier such as apps that pay for coffee or parking.”

“But there are also losers in the growing preference for digital money, including those who in the past have relied on gratuities and cash donations like waters and charities.

“The move to digital money may also exclude some Australians as ‘going cashless’ requires an active bank account, which many of our poorest are unlikely to have.”

It is always beneficial to have some cash on hand, in particular, if you intend on donating for philanthropic reasons. He mentioned that some street charity fundraisers are now ‘broaching the world of contactless payments’.

ME conducted a study with 2,000 transaction account holders, while 61% said they’re using less physical cash than five years ago, 39% are using the same if not more physical cash despite the invasion of modern technological advancements such as Tap & Go and online banking.

A report by Fung Global Retail & Technology have found that nine of the top 15 ‘most digital-ready’ countries are in Europe. It predicts Sweden to be the world’s first completely cashless society by 2030.

What are your thoughts about this movement? Let us know how it will impact on your small business by commenting below or sending us a message here

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