About The Payments Industry
when will Australia be Cashless?
.....or Why do you need to be on top of credit and debit card surcharges?
In late 2017 / early 2018, The Reserve Bank of Australia will introduce a new system called the New Payment Platform (NPP), this technology will push Australia closer towards becoming a cashless society. Back in 2014; 12 financial institutions signed up to build the NPP, partly to bring Australia up to speed with other countries that are further ahead in becoming a cashless society.
The NPP enables money to be transferred almost instantaneously, even when the payer and payee use different banks. It won't be necessary to worry about setting up someone as a payee in your internet banking system by ensuring that you've typed in the correct BSB number and account number.
Sweden is close to becoming the world's first completely cashless society, and in November 2016 India discontinued the use of high denomination notes, thereby eliminating over 90 per cent of its physical currency.
Based on Westpac's 2015 Cash Free Report, could be cashless by 2022 as more and more consumers move to contactless payments, electronic wallets and use the NPP.
www.westpac.com.au/about-westpac/media/media-releases/2015/21-september
The NPP enables money to be transferred almost instantaneously, even when the payer and payee use different banks. It won't be necessary to worry about setting up someone as a payee in your internet banking system by ensuring that you've typed in the correct BSB number and account number.
Sweden is close to becoming the world's first completely cashless society, and in November 2016 India discontinued the use of high denomination notes, thereby eliminating over 90 per cent of its physical currency.
Based on Westpac's 2015 Cash Free Report, could be cashless by 2022 as more and more consumers move to contactless payments, electronic wallets and use the NPP.
www.westpac.com.au/about-westpac/media/media-releases/2015/21-september
EFTPOS Transaction
Card payments
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According to the Australian Payments Network....
Australians are embracing the convenience of contactless technology, which is contributing to the rise in card payments; the international card schemes estimate that more than 75% of face-to-face payments are ‘tap and go’. A recent consumer survey conducted by the Reserve Bank of Australia, shows that cards are now the most commonly used payment method for all transactions over $10.
Australian consumers had access to 954,174 POS devices in 2016, whereas the number of ATMs by comparison was 32,879, however, the number of ATM withdrawals had dropped by 7.5% to 648.5 million. This follows a 5.5% drop in 2015 and 4.7% in 2014. Over the last five years, ATM withdrawals have dropped by 22%, but Australians used their cards 12.3% more in 2016, making 7.4 billion card transactions.
This is just how accessible digital payments have become.
Australian consumers had access to 954,174 POS devices in 2016, whereas the number of ATMs by comparison was 32,879, however, the number of ATM withdrawals had dropped by 7.5% to 648.5 million. This follows a 5.5% drop in 2015 and 4.7% in 2014. Over the last five years, ATM withdrawals have dropped by 22%, but Australians used their cards 12.3% more in 2016, making 7.4 billion card transactions.
This is just how accessible digital payments have become.
The hidden cost of the tap-and-go boom
Tap and Go
You don't have to look far to notice that one of the biggest changes in how we pay for things is the explosion of "tap-and-go" payments. Whether it's for a round of drinks or groceries, Australians are more likely to pay for something by waving a plastic card near a terminal than people anywhere else in the world.
Choosing to tap-and-go instead of "dip and PIN" does result in different costs for retailers, because it means the payment goes through a different set of pipes – the credit card networks, The attached article outlines this in more detail:
www.smh.com.au/business/banking-and-finance/the-hidden-cost-of-the-tap-and-go-boom-20171007-gywcuj.html
Choosing to tap-and-go instead of "dip and PIN" does result in different costs for retailers, because it means the payment goes through a different set of pipes – the credit card networks, The attached article outlines this in more detail:
www.smh.com.au/business/banking-and-finance/the-hidden-cost-of-the-tap-and-go-boom-20171007-gywcuj.html