Online shopping could make us cashless by 2021

Ceyda Erem

25 Jun 2020

redactor/hero-images/1622/cashless-2021_content.jpg

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

  • Promoted

    CUA Low Rate Credit Card

    0% p.a. for 13 months and then 21.74% p.a.

    11.99% p.a.

    $49 $0 in the first year

    0% balance transfer rate for 18 months and up to 55 interest free days. No annual fee for the first year and $49 after.

    • 11.99% p.a.

    • -

    • 0% p.a. for 13 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

  • Promoted

    Apply By 30 September 2020

    Qantas Money Qantas Premier Platinum

    0% p.a. for 18 months and then 21.99% p.a.

    19.99% p.a.

    $299 $199 in the first year

    Earn up to 80,000 bonus Qantas Points: 20,000 points each month for four months when spending $1,500 or more on eligible purchases. Plus 75 bonus Status Credits when you make your first eligible purchase by 30 November 2020.

    • 19.99% p.a.

    • -

    • 0% p.a. for 18 months and then 21.99% p.a.

    • 21.99% p.a.

    • 55

    • 199.0

    • 3.00%

    • $299 $199 in the first year

    • $30.00

    • 3%, min $3.00

    Read our Mozo Review to learn more about the Qantas Premier Platinum

    Details Close

  • Promoted

    American Express Qantas Discovery Card

    No current offer

    20.74% p.a.

    $0

    Receive up to 1.75 Qantas Points for every $1 spent on Card purchases (T&Cs apply). No annual fee for the life of the card. Credit Card Provider of the Year in the Mozo Experts Choice Awards 2019.^ T&C’s apply

    • 20.74% p.a.

    • -

    • No current offer

    • 44

    • 3.00%

    • $0

    • $30.00

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

    Details Close

  • Promoted

    American Express Platinum Edge Credit Card

    No current offer

    20.74% p.a.

    $195

    Receive a $200 Travel credit each year (T&Cs apply) & earn up to 3 Membership Points per dollar spent. Credit Card Provider of the Year in the Mozo Experts Choice Awards 2019.^ T&C’s apply

    • 20.74% p.a.

    • -

    • No current offer

    • 55

    • 3.00%

    • $195

    • $30.00

    Read our Mozo Review to learn more about the Platinum Edge Credit Card

    Details Close

Mozo may receive advertising fees from the financial institutions, issuers of financial or credit products and third party advice providers that are shown on this page. These fees are based on a cost per click, cost per acquisition, or a fixed fee.