Cash: The Essential Currency

With the media continuing to push the false narrative that there is an unprecedented surge in digital payments, it is easy to fall into the misconception that cash is becoming irrelevant. Cash continues to play an essential role Australian society. This is particularly the case for our most vulnerable: people in rural and regional communities, the elderly, and those struggling to get ahead. 

This was shown earlier this month when the Commonwealth Treasurer, Jim Chalmers released the Strategic Plan for Australia’s Payment System. A key finding of the report is “The Government will support Australians having continued access to cash”. Furthermore, the report makes reference to the importance of maintaining cash as a payment option, citing issues such as resilience, access in rural and regional areas, and ensuring access to the payments system for less technologically capable people as key considerations. To read the full report Click here .

 ATMIA will continue to monitor these developments closely, and when appropriate make a submission.

In the face of new methods of payment, cash continues to be a significant player. According to the Reserve Bank of Australia a significant proportion of transactions are still conducted with cash. Cash offers various advantages that are yet to be matched by cashless transactions. It is universally accepted. Cash is accepted by virtually every business across the country, irrespective of their size or technological capabilities. It remains the most inclusive form of payment, with no requirement for technological tools, internet access, or bank accounts. This ensures that all members of society, especially those with limited digital access, can participate in the economy.

The strength of cash also lies in its simplicity and reliability. In the event of power outages, network issues, or cyberattacks, cash remains a fail-safe method of transaction. It also protects privacy, with cash transactions leaving no digital trail. This is an essential consideration for many, particularly in an age of heightened concerns around data privacy and security.

This month has also brought the weaknesses of cashless payment options to light. Research has shown that people who use buy now pay later apps are more than twice as likely to end up in financial trouble than other payment methods. Stories of exorbitant late payment fees and hidden terms and conditions have also pushed the government towards regulation. This highlights the importance of cash as an easily understood, transparent, and easily budgeted payment tool.

In relation to the cashless gaming trials in NSW, Liquor and Gaming NSW has advised a cardless trail of at least 500 machines, with a mix of hotels & clubs across regional and metropolitan will start 1^st July 2023. ATMIA will continue to monitor this situation with Liquor and Gaming NSW for further details we recommend readers to visit Liquor and Gaming NSW’s website  click here.

Internationally, all industry stakeholders are reminded of ATMIAs upcoming European and Emerging Markets ATM & Cash Summit being held in Dublin on 18^th -19^th October. Delegates attending this event will hear from regional and international experts sharing their expert knowledge in the industry. This two-day seminar will enable industry stakeholders the opportunity to work together promoting new technology, particularly through ATMIA’s Next Gen ATM project, to ensure we can all look forward with confidence towards the future. To view the full event click here.

As always, thank you to all our members for all your support. Please do not hesitate to reach out to me anytime via below details.

Cheers
Sandra