New research shows cashless is king

The research shows that the ease and security of waving a card, phone or even your wrist instead of carrying around cash are more popular than ever.

Young's YES embroidery owner Toni Ashton said more people are using cards over cash in her store.

"I agree with the research; we find only about 20 per cent of people use cash when they pay in our shop," she said.

"It is a bit strange now when we see someone pulling some cash out.

"We've noticed this trend developing over the years to the point where now the majority of our customers will use their cards, either credit or EFTPOS when it is time to pay." 

ATO Assistant Commissioner Matthew Bambrick said there had been a cultural shift towards cashless payments, even for smaller amounts.

 “The research shows that cash is only the preferred payment method for transactions under $5, and for anything over $50, the vast majority of people want the ease and security of an electronic payment," he said.

 “Where we once saw people walk into car dealerships with cash in hand, cash has now been relegated to the morning coffee." 

The trend towards cashless payments is particularly evident among people under 35, who carry the least amount of cash. Those aged 18-24 are also half as likely to request a discount for paying in cash compared to the general population.  

"The move by the younger generation away from seeking an ‘under the table’ discount is really encouraging. It indicates that a once common practice is now rare," Mr Bambrick said. "The research shows consumers are drawn by the convenience of cashless payments, tap and go payments have also been game-changing, bringing about faster transaction times. With the decline in minimum transaction amounts, we are likely to see more and more people carrying little or no cash at all. Most businesses already know this, and we expect the rest will be there soon.”