Credit and debit cards make ground on cash
Credit cards and debit cards are beginning to challenge cash as the preferred payment option in Australia.
New figures from the Reserve Bank of Australia (RBA) show that while cash still accounts for 70 per cent of all transactions by value, Eftpos and Visa and MasterCard debit card transactions now make up 15 per cent of total spending.
Meanwhile, credit card expenditure accounts for nine per cent of all purchases.
Commenting on the figures, the RBA clarified: "Cards are used extensively across all but very low transaction values. For transactions between $25 and $200, debit and credit cards account for 45 per cent of transactions."
For more sizable transactions, cheques and BPAY were the preferred payment option.
Other research from the RBA has shown that loyalty schemes and zero interest credit card offers both increase uptake of credit cards at the expense of other payments methods such as cash or debit cards.
This article brought to you by Mozo – helping you compare debit cards