Cash transactions drop as Aussies favour debit cards

Friday 16 September 2011

Article by Mozo

The proportion of transactions conducted using cash declined over the last three years, falling from 70 per cent to 64 per cent, according to a recent study.

Debit cards 'taking over from cash'

Figures from the Reserve Bank of Australia (RBA) showed that plastic and online payments have started to replace cash for purchases between $25 and $50, reports the Australian.

For bill payments, there was a significant shift towards credit and debit card use, with the most recent data showing that only 20 per cent of households pay using cash, compared with 37 per cent in 2008.

It suggested that as credit cards that can be used for contactless payments become more popular, the use of cash is likely to wane even further.

The only sector that experienced an increase in the proportion of payments made using cash was the restaurant business, which the RBA attributed to the imposition of surcharges on credit card payments.

A study conducted by RFi last month revealed that 40 per cent of people between the ages of 18 and 34 prefer to use debit cards rather than any other payment method.

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