Online shopping could make us cashless by 2021

Ceyda Erem

25 Jun 2020

Cashless 2021 content

In March, Aussies across the country were advised to ditch cash as a method of payment to prevent the spread of COVID-19. And according to new research by Buy Now, Pay Later (BNPL) provider, Zip, the COVID-19 pandemic may have been the final nail in the coffin for cash. 

The BNPL platform found that ATM usage is at an all time low, down by 43% in May, while online spending has reportedly doubled compared to this time last year, up by 89%. 

Zip co-founder Peter Gray says this preferred way to pay could even be the push many Aussie retailers need to take their business online. 

“For businesses the move to online and creation of frictionless payment routes is crucial. Online will become the biggest battleground for Australian retailers,” he said. “At this rate, it’s not unreasonable to consider Australia could be almost cashless by 2021.” 

Similar research by Mastercard revealed that 30% of consumers plan on making more online purchases in the future, while 51% plan to use less cash and 21% use contactless credit card payments as their preferred way to pay. 

The vast majority (71%) of respondents even believe that contactless payments are here to stay while on a global scale, six out of 10 think digital payments will become a permanent part of everyday life. 

“The digital economy is the future and there’s no doubt consumers and merchants are embracing this evolution. Now that people are experiencing and expecting the security, simplicity and seamlessness of digital commerce, there’s just no turning back,” said Mastercard products and innovation executive, Sandeep Malhotra.

3 quick tips for safer online shopping 

As online shopping continues to grow in popularity, so does the opportunity for scam, fraud and nasty fees you didn’t expect. So if you’re thinking of taking your shopping purely online, here are three quick tips for a seamless experience: 

Choose your plastic wisely - The last thing you want when shopping online is to cop a pesky foreign exchange transaction fee. What’s even more frustrating is that they can even occur when shopping at an online store in Australia. Research by the ACCC revealed that while a store may be Aussie, they might still process transactions internationally. So do yourself and your wallet a favour by opting to use a credit card that charges zero foreign transaction fees. 

Trust your gut - If you come across an online store that doesn’t look quite right, leave the page. This could include things like typos or low resolution images on the page, no contact details or asking for payment in the form of gift cards or vouchers.  

Read reviews - Before you give any online store a go, research previous customer reviews first. This will give you a bird’s eye view about the quality of the products or services and level of customer service.

Need a credit card that can keep up with your online shopping habits? The head on over to our credit card comparison tool to find your next plastic match!  

Compare credit cards

Rates updated daily. Advertiser disclosure.

  • Apply By 30 June 2021

    Bendigo Bank Low Rate Credit Card

    0% p.a. for 24 months and then 11.99% p.a. (2.00% balance transfer fee)

    11.99% p.a.

    $45

    0% p.a. balance transfer for 24 months (Reverts to 11.99% p.a). Low annual fee of $45 and no fees for additional cardholders.

    • 11.99% p.a.

    • -

    • 0% p.a. for 24 months and then 11.99% p.a. (2.00% balance transfer fee)

    • 13.99% p.a.

    • 55

    • 3.00%

    • $45

    • $15.00

    • 0.50%, Min $3.25

    Read our Mozo Review to learn more about the Low Rate Credit Card

    Details Close

  • American Express Qantas Ultimate Card

    No current offer

    20.74% p.a.

    $450

    Receive 120,000 bonus Qantas Points plus 120 Status Credits when you apply, are approved, and meet the minimum spend criteria of $4,500 in the first 3 months. T&Cs apply. Available to new Card Members only.

    • 20.74% p.a.

    • -

    • No current offer

    • 44

    • 3.00%

    • $450

    • $30.00

    Read our Mozo Review to learn more about the Qantas Ultimate Card

    Details Close

  • Apply By 30 November 2021

    St.George Vertigo

    0% p.a. for 30 months and then 21.49% p.a.

    13.99% p.a.

    $55 $0 in the first year

    0% p.a. for 30 months on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. No annual fee for the first year, $55 thereafter. New cards only, Eligibility criteria and T&Cs apply. Offer ends November 30th 2021.

    • 13.99% p.a.

    • -

    • 0% p.a. for 30 months and then 21.49% p.a.

    • 21.49% p.a.

    • 55

    • 0.0

    • 3.00%

    • $55 $0 in the first year

    • $15.00

    • 2%, Min $2.50

    Read our Mozo Review to learn more about the Vertigo

    Details Close

  • Great Southern Bank Low Rate Credit Card

    0% p.a. for 25 months and then 21.74% p.a.

    11.99% p.a.

    $49 $0 in the first year

    0% balance transfer rate for 20 months and up to 55 interest free days. No annual fee for the first year and $49 after. Mozo Experts Choice Balance Transfer Platinum Credit Card Winner 2020^

    • 11.99% p.a.

    • -

    • 0% p.a. for 25 months and then 21.74% p.a.

    • 21.74% p.a.

    • 55

    • 0.0

    • 3.40%

    • $49 $0 in the first year

    • $12.50

    • 2.00%, Min $3.50

    Read our Mozo Review to learn more about the Low Rate Credit Card

    Details Close

  • Apply By 30 November 2021

    Westpac Low Rate

    0% p.a. for 28 months and then 21.49% p.a. (1.00% balance transfer fee)

    13.74% p.a.

    $59 $0 in the first year

    Enjoy a super low rate of 13.74% with 55 days interest free plus 0% balance transfer for up to 28 months at 1% BT fee. No annual card fee for the first year, $59 thereafter. New Cards only. Offer ends November 30th 2021. T&C's and exclusions apply.

    • 13.74% p.a.

    • -

    • 0% p.a. for 28 months and then 21.49% p.a. (1.00% balance transfer fee)

    • 21.49% p.a.

    • 55

    • 0.0

    • 3.00%

    • $59 $0 in the first year

    • $15.00

    • 2%, Min $2.50, Max $150

    Read our Mozo Review to learn more about the Low Rate

    Details Close

^See information about the Mozo Experts Choice Credit cards Awards