A “tipping point” has been reached in the journey to a cashless society, according to Philip Lowe, governor of the Reserve Bank of Australia, in a speech at the 2018 Australian Payment Summit in November. “It is now easier than it has been to conceive of a world in which banknotes are used for relatively few payments; that cash becomes a niche payment instrument,” he said. Yet while many argue that a cashless society is ‘inevitable’, letting go of cash is proving hard to do.
Undeniably, the shift to electronic payments (e-payments) is accelerating across the globe. According to the World Payments Report 2018, non-cash transaction volumes grew by 10.1% in 2016, to reach a total of 482.6 billion. Developing markets have seen the highest growth rates, for example India (33.2%), China (25.8%) and South Africa (15.1%). Non-cash transactions are expected to continue to grow at a compound annual growth rate of 12.7% globally, with emerging markets growing at 21.6% from 2016 to 2021. This trend is “fuelled by governments’ efforts to increase financial inclusion and the adoption of mobile payments”, according to the report.
