Credit card spending grows as Australia becomes a 'cashless society'

Credit and debit card spending is growing as the number of people making ATM cash withdrawals continues to fall.

MWE Consulting, which specialises in debit and credit card analysis, found that debit card ATM withdrawals per account fell about 6.3 per cent to 2.39 a month last year, compared to 2.55 in the previous year and a peak of 2.62 in 2006, the Australian reported.

"We have been seeing a reduction in cash transactions on credit [cards] for a long time . . . but what is significant is this [debit card] reduction, which accelerated in the last year," MWE managing director Mike Ebstein told the news provider.

He said that the findings indicated that Australia is beginning to move towards becoming a cashless society step and added that the next step will be an increasing use of contactless credit and debit cards from this year.

Mr Ebstein’s comments come after the Commonwealth Bank moved to equip all of its debit and credit cards with contactless technology, the Australian noted. The technology means that cardholders only have to tap their debit or credit card on a reader to make the transaction.

MWE’s findings will encourage bank customers to compare credit cards and debit cards in order to get the most for their money. Australian credit card spending is expected to top $22 billion for the recent holiday period, the Sydney Morning Herald has said.

This article is brought to you by Mozo – Helping you compare credit cardsADNFCR-1761-ID-19538460-ADNFCR