Sweden is set to be the country’s first cashless society and in less than three years’ time, Australia could follow suit.
This comes as Australia is already seeing a decline in cash payments with many relying on the technology for almost all transactions.
While the ‘tap-and-go’ technology has changed the way Australians make payments, Sweden is taking this to the extreme with plans to cut out cash all together.
According to a Swedish bank, just 13 per cent of payments in the country are made using cash, edging the country closer to its goal of becoming the world’s first cashless society by 2023.
Swedes are now opting to use debit card payments, preferring to use a pin to uphold their trust in these technologies and a finance app called “Swish” is also a key player in Sweden.
The study also found a definite decline in cash payments in Australia with Professor Richard Holden, an economist at the University of NSW, having said in 2018, the country could become cashless by 2020.
Cash is now more commonly used for smaller payments by all age groups, especially for those under $10.
However, it’s younger Aussies who are opting for different payment methods, including phone apps.
Despite society moving away from cash and toward, there could potentially be downsides to a cashless community.
Small businesses may face an increase in transaction fees with more people using cards or even payment apps.
The elderly and those who struggle with technology are at risk of being left behind just as people who can’t afford smart phones or those who don’t have credit or debit cards.
Still, all statistics point to Aussies ditching their physical dollars but they won’t be disappearing permanently, at least for now.