Ten years ago, you may have baulked at someone suggesting that cash could be on the way out. But now, it’s hard to ignore the signs that the paper trail could be coming to an end. In another couple of decades, generations may look back and find it odd that people used to hand slips of paper to one another in exchange for goods or services. With more transactions now taking place online, is it time to start preparing for a world without physical money?
Will all Transactions Soon be Online?
In 2021, there are 7.9 million online retailers across the world, and that number is swelling fast. On top of that, there are various sites offering services that require people to pay money to enjoy them. Entertainment sites, for instance, exist in the borderless online world and attract users from a wide variety of different countries.
An example of this is how Australians can play online casino games at sites based in New Zealand. Using a list of all online casinos NZ, players can find the best places to play and access all the offers available. When topping up funds, the sites use payment systems that allow easy transfers of foreign currency.
It seems fair to predict that most transactions will exist online in the future, as physical shops are also beginning to install payment gateways that operate via the internet. In Australia, you may have noticed that you can easily pay for your purchases in several ways, and most of these rely on the internet.
No Strong Reasons for Keeping Cash
With advanced payment systems showing the possibility of what can be done, it is hard for anyone to come up with a reason to keep cash around. Small business owners may feel like sticking to the traditional method, but with the internet permeating nearly every place in the world, there may not be much need for these people to hold on to the past. Even people in the most rural parts of Africa can access the internet now, and the majority of the global population should be online by 2050 according to estimates.
Cash transactions are unhygienic, inconvenient, and untraceable. Online payment systems eradicate all these problems and are generally more efficient. Anyone advocating for keeping cash is surely running out of arguments.
How Long Does Cash Have Left?
Some analysts have predicted that Australia could be cashless as soon as 2024. A report from the fintech company, FIS, estimates that a mere two per cent of transactions will be conducted using coins or notes within three years. The fact that younger generations have been found to almost steer clear of cash entirely gives a solid indication of where its future is heading.
Cash may stick around and continue to be used in some transactions for a few more years, but it is likely to become increasingly superfluous. It’s time to get preparing for this new world of digital payments, which are superior to cash in almost every way.