What would a cashless society look like?
National Seniors is supporting those who choose to use cash, but there are reasons behind the push for card and digital transactions.
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The momentum towards a cashless society has been building for years, driven by technological advancements, convenience, and public health considerations.
The COVID-19 pandemic accelerated this trend as contactless payments, which reduce physical interaction, were seen to be promoting health and safety.
Digital payments also offer enhanced security against theft and loss, and they streamline transactions, making them quicker and more efficient.
Governments and financial institutions have tended to support the move away from cash due to its potential to reduce tax evasion and illicit activities, which are harder to track with cash transactions.
Accessibility: Cash remains crucial for people who lack access to banking services or are uncomfortable with digital technology, such as the elderly and those on low incomes.
Privacy: Cash transactions offer anonymity, protecting personal information from being tracked or hacked.
Reliability: Cash does not rely on technology, making it essential during power outages, technical failures, or in remote areas with poor connectivity.
Budgeting: Many people find it easier to manage their spending with physical money, providing a tangible sense of their finances.
Convenience: Digital payments are fast and easy, allowing transactions from anywhere at any time without needing to carry physical currency.
Security: Digital transactions can be tracked and monitored, reducing the risk of theft and fraud.
Hygiene: Electronic payments eliminate the need to handle cash, reducing the spread of germs.
Economic benefits: Digital payments can reduce costs associated with printing, transporting, and storing physical money.
It’s important to note, however, that digital and card payments can attract fees. Between 2019 and 2022, there was a 77.5% increase in the number of in-person payments by credit and debit card that attracted a surcharge – typically adding 0.5% to 1.5% to the cost of the purchase.
The decline of cash usage is evident in many countries. In Australia, the Reserve Bank reported that cash transactions accounted for only 27% of consumer payments in 2019, down from 69% in 2007. By 2022, it was just 13%.
Meanwhile, the Australian Payments Network indicated that ATM withdrawals fell by 20% in 2020 alone.
National Seniors Money Manager account
The National Seniors Money Manager account pays interest on every dollar you deposit, and your money is there whenever you need it.
With no monthly fees, and access to your available balance online or via a Visa Debit Card, National Seniors Money Manager account offers you a flexible savings account anytime, anywhere.
Despite the shift towards digital payments, there are several ways you can support the continued use of cash as an alternative.
Choose a bank with ATMs and branches: Opt for financial institutions that maintain physical branches and ATMs, ensuring access to cash when needed.
Use cash for transactions: Make a conscious effort to use cash for everyday purchases, supporting businesses that accept cash.
Educate others: Promote the benefits of cash to those around you, particularly the importance of accessibility and privacy.
Advocate for cash: Participate in campaigns and discussions advocating for the continued availability of cash as a payment option. This includes protesting any attempts to add a surcharge to payments made in cash.
Join NSA’s Keep Cash campaign.
Keeping cash is not about turning back the tide on cards and digital payments, it’s about providing people with options.
Cash remains significant, particularly for accessibility, privacy, and reliability.
By taking steps to support the continued use of cash, we can ensure that our financial system remains inclusive and adaptable to everyone's needs.
National Seniors Australia Ltd ABN 89 050 523 003 arranges deposits as an authorised representative (AR 282736) of Auswide Bank Ltd, ABN 40 087 652 060 Australian Financial Services Licence 239686. We do not provide any advice based on any consideration of your objectives, financial situation or needs. A target market determination can be obtained at auswidebank.com.au/tmd. Before making a decision to invest, please consider the Terms and Conditions. If you make a deposit, we will receive a commission from Auswide Bank. For more information about our relationship with Auswide Bank please read the Financial Services Guide contained in the Terms and Conditions.*This account is protected by the Australian Government deposit guarantee. Up to $250,000 of deposits in ‘protected accounts’ held by an entity with Auswide Bank are covered under the Financial Claims Scheme. Information on the Financial Claims Scheme is available at www.fcs.gov.au. The interest rate is variable and is subject to change without notice. The current interest rate can be found at www.nationalseniors.com.au/moneymanager
