The future of our ‘cashless’ world

By Kate - Fri, 15/05/2020

 

“Cash is no longer king” - this has been a hard fact for some time now. The Coronavirus pandemic has no doubt sped up the adoption of a mostly cashless society. Over the last few years, we have seen major change in the online world and the way customers pay for products or services. So, what will the world adopt post-pandemic? What will happen to cash as we once knew it? How will these changes affect us? Let’s take a look.

The history of our Cashless society is one of great interest, that started long before any of us could ever have images. See this infographics for some incredible insights. 

Research has shown that the total cash payments received by Australian merchanges plummeted by 46% from 2010-2016. Cash withdrawals have been diminishing by approximately 5%/year since 2013. At the present moment, cash payments make up 10% of total sales. This was, of course, pre-COVID. 2020 has seen rise to the adoption of digital payment technologies, as people look for contactless options for processing payments. Whilst there is a feared association between cash contact and virus transmission, Medical experts have confirmed that cash and coins are safe to use; there is no evidence that either will spread COVID-19. The WHO has further backed this claim and rejected subsequent reports stating that cash prompts COVID transmission. Irrespective, there is an evident change in mindset leading to global communities adopting cashless ways. The cashless world has arrived and it is here to stay!

Non-cash payments officially started back in the 1990’s when electronic banking became common practice. Come 2010, digital payment technologies were widely adopted in most countries globally by way of PayPal, Digital Wallets such as Apple Pay, and NFC payments. Since then, many other software providers have been introduced to market, revolutionising both the business landscape and the way in which customers shop. My School Connect too has supported the shift online, digitising payment processing for all things school-related, eliminating the need for cash handling in schools.

There is no question, online payment processing and transitioning into a cashless society makes life easy. It breaks down geographical boundaries, eliminates time restraints, removes the need for cash handling, reduces tax evasion and money laundering, and the list goes on. There are so many benefits for both the buyer and the seller, though there are also disadvantages. For one, buyers will need to keep a closer eye on their finances. It’s much more simple to stop spending when your wallet is empty, than to know when to stop swiping your credit card. Online security is a major threat, even global giant PayPal announced an incident in 2017 whereby personal identifiable information of over 1.5 million customers was placed at risk. Whilst efforts are in place to mitigate risk, unforeseeable events often present themselves. If a system is compromised in any way, authorities have the right to cut you off from your financial institution which can result in you being ‘cashless’ for an indefinite period. Relying solely on technology for payment processing puts you at the mercy of your service provider. An outage or downtime will leave you hoping that their service response time aligns with your expectations!

According to research conducted by East & Partners, if the current trends continue, we can expect Australia to be almost cashless by 2022. Thankfully, the schooling sector is ahead of the game and well equipped to handle the transition into a completely cashless society. Whilst there remains some cash handling in schools, it is becoming less common. More and more schools are adopting online management platforms, making it possible for school staff, parents and students to transact the necessities online. Whether ordering kids lunches, purchasing kids uniforms, arranging volunteer schedules, managing events, or something adhoc like setting up an online Mother’s Day stall, My School Connect has you covered. My School Connect is completely cashless, intuitive and cost effective. If you’re looking to prepare for the imminent cashless world that awaits us, contact My School Connect today and let us help you to make online easy.