Australia Could Be Cashless By 2024, So Say Goodbye to Your Wallet

The push away from cash has been accelerated by the coronavirus pandemic.

You better tell your parents to quit taking cash out ‘cos it’s officially out of fashion.

Okay, cash (and maybe even your ‘rents) haven’t been in fashion for a while now but thanks to a new financial report, we may be living in a completely cashless society in just a few years.

According to a report by global eCommerce and payment technology company FIS and Worldpay, Australia will be 98 per cent cashless by 2024. Specifically, they noted that the decline of cash will fall to just 2.1 per cent in Oz in just three years’ time.

Not only are electronic forms of payment taking over cash, but digital forms of payment are also on the rise.

According to the report, 24 per cent of eCommerce (electric and online forms of payment), and 8 per cent of point of sale purchases were done using a digital or mobile wallet like Apple Pay.

Other payment methods including buy now, pay later services, like Afterpay, have also risen in popularity in the Australian market. They currently make up 10 per cent of online spending and are expected to double in use by 2024.

One of the major reasons Australia is so quickly shifting away from cash is due to the economic disruptions caused by the coronavirus pandemic.

Thanks to lockdowns and virus containment measures, cash was very quickly, but temporarily phased out in preference of digital payment methods.

Essentially, because we were trying so hard to stay physically distanced when the pandemic hit Australia, most of us turned to online shopping. Plus when the shops opened back up again, we were met with cashless retail business in an effort to further minimise the virus spread.

Because of this, Australia is expecting a 10 per cent rise in eCommerce payment types, whether that be online shopping, credit/debit cards or using digital payment methods. In fact, the use of debit cards is set to rise by 21.3 per cent.

As of 2020, eCommerce makes up $47 billion of Australia’s market, but FIS expects that to more than double to almost $70 billion by 2024.

So, whether you’re a fan of seeing your wallet stacked full of notes or you prefer to tap your phone or watch, cash is likely going to become a thing of the past in your lifetime.

You can find out more stats about global spending habits in the report here.

Header Image: johan10 via Getty Images