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Is the world turning its back on cash?

By October 18, 2017 August 27th, 2019 No Comments

Global non-cash transaction volumes are surging, and are forecast to expand at a 10.9 per cent compound annual growth rate to reach over 725 billion a year by 2020. These are among the key findings of the 2017 World Payments Report, published in October by technology consultants Capgemini, and international banking group BNP Paribas

Australia is a world leader in the field, ranked fourth in the world for non-cash transactions per capita behind only the US, South Korea and Denmark.

Phil Gomm, banking and capital markets industry practice director at Capgemini Australia, says even though the Australian market is relatively mature, its rate of uptake of digital payment systems is continuing to accelerate—and the rest of the world is taking notice.

Innovation hotbed

“Australia powers ahead of both US and Europe with 9.9 percent growth in non-cash transactions, as we increasingly switch from cash to electronic payments,’’ says Gomm, referring to the Report’s findings.

“We can fairly confidently predict that Australia will hold onto this increase of 10 per cent growth in electronic transactions.

“This leadership position makes Australia a hotbed for innovation in payments. Global markets are looking very carefully at what’s going on here.’’

eftpos leads the charge

eftpos, the nation’s most widely used debit card system, accounted for more than 2.2 billion CHQ and SAV transactions a year, worth more than $138 billion in 2016.

The recent deployment of efpos’ new national centralised processing infrastructure, the eftpos Hub, the eftpos Token Service Provider (TSP) and the release of eftpos Mobile, will assist the industry in developing cost effective digital payments solutions for the Australian market over the coming years.

Emerging Asia

Among those regions looking to Australia for technological leadership is emerging Asia—led by China and India. High-growth nations—such as Vietnam, Thailand, the Philippines and Indonesia—are also joining the party. The World Payments Report notes that this market is projected to enjoy a phenomenal compound annual growth rate of 30.9 per cent in digital transaction volumes through to 2020.

Future trends

Trends expected to boost non-cash transactions in the future include mobility, connected homes, entertainment and media. The Report predicts that new technologies such as contactless, wearables and augmented reality, will increasingly become the new drivers of growth.

“For many of us, cash will become a thing of the past,” says Capgemini’s Gomm.