Further to my posts here, here and elsewhere on the cashless trend, the ABN yesterday reported on comments by the Governor of the Reserve Bank on this topic.
Regulators are pushing us into a cashless world as RBA declares ‘a turning point has been reached’
By business reporter Nassim KhademCash will become a niche payment sooner than we think and cheques will be phased out, says Reserve Bank of Australia governor Philip Lowe, as the Federal Government considers imposing tougher penalties on cash economy activity.
On Monday Mr Lowe told the Australian Payments Summit in Sydney that for some decades people have been speculating that we might one day go cashless, and now it could become a reality.
“It looks like a turning point has been reached. 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,” Mr Lowe said.
Non cash payment in retail is certainly growing as all of us with shops are seeing. This is being facilitated by multiple payment options as well as new sources of finance for sending such as the buy now pay later providers.
It is important we engage with a variety of options so how we receive payment is not a barrier to getting the sale.
Whether we like it or not, cashless business is growing. Governments, especially, will like this as it better serves their revenue need.
The ABC article references a Treasury discussion paper on the digital economy. Click here to access that discussion paper.
Unfortunately as a retailer you are slugged with outrageous eftpos fees which are a direct result from the banking industries decision to direct consumers down this path.
Eftpos fees should be absorbed by banking institutions or the consumer. Not the retailer.
Unfortunately as a retailer you are slugged with outrageous eftpos fees as a result of the direction the banking industry is pushing consumers.
Eftpos fees should be absorbed by banks or the consumer, not retailers.
Eftpos fees are not outrageous.
Eftpos fees are not outrageous for the high margin products. But it’s outrageous for lotto, we are paying the fees that the Lott should pay.
Eftpos fees are not outrageous but neither are they equitable. Expect legislation to regulate fees which will negatively affect the ability of banks to slug retailers for premium cost of fringe benefits. Also expect developments on seemless crediting of funds, ie not just payments, which will have big implications for lottery wins.
I remember cheques. I recall using them 10 years or so back along with the facsimile.
There are already moves. Tyro, for example, credits that night to a Tyro business account, from which you can pay bills as you would any other account, and it earns competitive interest.
only if corrupt bank ceo’s reduce the HEFTY eftpos fees charged to small retailes.
Interesting in the last three weeks we have had two blackouts there was also the situation when the eftpos system was down for several hours not even the supermarket was able to process payment so cashless society is only a dream and desire by the reserve bank . I can see the governments point of view press a button and they can track every persons movement of where that person been what they purchased how much they have paid. Privacy no one will have any and that information will be open for abuse and probably on sold for marketing purposes.
Lot’s of Cafes especially in Country towns have signs displayed. No EFTPOS NO CREDIT CARDS-CASH ONLY
Graeme,
I am aware of a new gift shop thar opened 10 days ago, which has no restrictions on cash or card. Which is regularly taking 95% on card and has already had one day when no cash was taken.!!
Colin, I am aware of a lot of people, younger ones especially putting everything of EFTPOS or Credit. 4 cups of coffee or more per day at $4 p.c. cost the retailer 30c per transaction.the cash only cafe charges only $3,50 p.c. just around the corner. Let the battle begin. That is the reason I pointed out the resistance going on. some stores will NOT take cash for any purchase whatsever. I guess what I am saying is nothing is set. Far from it. It will take time.
Graeme at $4 per cup of coffee you can afford to pay the bank charges but when someone comes to a Newsagency and wants two$1.oo instants and wants to pay by card this is hardly feasible and not the sort of business I want as I need to pay my overheads too and not just make the banks rich.
Colin, I have no disagreement with what you say This is not a discussion on my part to decide points obviously you can choose what you limit on EFTPOS and what transactions you want. My point is very objective of what is happenning out there today. Simply the consumer demand versus the retail offer-You figger for your own circumstances and meet the market you want to satisfy.
No EFTPOS on Gaming is up to you however you ain’t gonna change the new society demand. Consumers always win in the long run. Retailers are the real public servants The Golden Rule- He who has the Gold Rules.
Happy retailing it’s fun and always a challenge. I love it.
Looking at this more broadly, cashless in my view means theft reduction for the retailer, fewer mistakes, time saved and greater government revenue, which should lead to a reduction in tax elsewhere in the system.
Too many people transacting cash only are costing us too much money.
How can going cashless reduce theft ?
In myriad ways, Mark, including: it is harder to steal what you cannot touch, less human intervention means less theft.