Cash still reigns as payment method

STAFF REPORTER
15th May 2014
Business Spectator
While cash-free payments have risen sharply over recent years, a new study shows the stabilisation in the extent of cash purchases should see the payment method reign supreme for a while yet, according to The Australian Financial Review.
The survey of 15 different payment options from Hewlett Packard and consultancy RFi — including BPay, credit cards, EFTPOS and cash — found that the use of cash fell from 90 per cent of transactions to 70 per cent from September 2011 to September 2013, but has since lifted marginally once more.
Alan Shields, RFi’s managing director of advisory, said online buying and the introduction of contactless payments had been a driving force behind the sharp fall in cash payments, however small business reluctance on contactless was an offsetting factor.
“A lot of the erosion of cash came about as a result of contactless,” he said, accoridng to the AFR. “The issue there is a lot of newsagents and coffee shops that don’t want to accept it.”