Research commissioned by the Australian Taxation Office (ATO) has revealed that four out of five people now use cards or phones in preference to cash when paying for their purchases.
Assistant Taxation Commissioner, Matthew Bambrick said cash payments were fast becoming a thing of the past.
“The ease and security of waving a card, phone or even your wrist instead of carrying around cash is more popular than ever,” Mr Bambrick said.
“The research shows that cash is only the preferred payment method for transactions under $5, and for anything over $50, the vast majority of people want the ease and security of an electronic payment.”
He said cash had now been relegated to the morning coffee.
“The trend towards cashless payments is particularly evident among people under 35, who carry the least amount of cash, Mr Bambrick said.
“Those aged 18-to-24 are also half as likely to request a discount for paying in cash compared to the general population.”
He said the research shows that consumers are being drawn by the convenience of cashless payments which remove the unnecessary step of withdrawing cash and carrying it around when making a transaction.
“Tap and Go payments have also been game changing, bringing about faster transaction times,” he said.
Mr Bambrick said the business community had responded with 86 per cent of businesses agreeing that most customers expected to be able to pay via electronic means.
“The research indicates that the trend away from cash will only gather pace,” he said.
“This is more than a passing fad – it is the way of the future!”
