Consumers pay more with credit and debit than cash

The latest Reserve Bank statistics indicates the country is on its way to becoming a cashless society as consumers spend three times as much on their credit and debit cards as they are withdrawing cash.

Credit and debit cards accounted for 81.8 per cent of all transactions in FY13, a 2.2 per cent rise from 79.6 per cent in FY12. This compared to a fall in ATM and eftpos withdrawals from 20.4 per cent to 18.2 per cent over the same period.

Independent eftpos provider, Tyro Payments, said the internet and mobile and payment technologies are changing the way consumers are paying.

“It is conceivable that we are not far off when consumers leave home entirely without cash, armed only with a credit or debit card to pay for anything from a package of chewing gum to a new car,” Jost Stollmann, Tyro Payments CEO, said.

“With the number of eftpos terminals Australia-wide having grown to almost 780,000, consumers can use ‘tap and go’ technology more conveniently than fumbling for notes and coins.

“Pins, signatures and receipts are all a thing of the past for small ticket purchases below $35 or contactless payments up to $100.

“Cardholders simply hold their card against a special contactless reader to wave and off they go.”

According to Stollman, this shift makes good business sense for retailers as it reduces queues and purchase abandonment. It also reduces the risks of robbery and cash handling costs.