Australians are being forced to pay by card instead of cash during COVID-19 pandemic

Australians are being urged to pay by card in the fight against COVID-19, but a new survey has found many people are still using notes and coins.

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Putting cash in an old biscuit tin or under the mattress could soon become a thing of the past.

Many consumers are being forced to pay by card during the coronavirus pandemic, which could rapidly push Australia towards a cashless economy.

The serious concerns around the spread of germs when using notes and coins has resulted in many businesses – including supermarket giants Coles and Woolworths – encouraging customers to pay by card and not cash.

And this week the new “tap and go” payment threshold will rise from $100 to $200 for the next three months in a staggered rollout to limit the use of cash.

But new research compiled by software accounting firm MYOB, who quizzed 1000 people in the middle of last month before the height of the COVID-19 outbreak, found the following:

• 69 per cent of people have cash on them.

• 65 per cent feel more out-of-pocket when using cash.

• 63 per cent say it’s easier to keep track of spending using a card instead of cash.

• 62 per cent don’t like cash-only stores.

Sjana Earp uses wearable technology to pay for a coffee.

MYOB’s chief economist Jon Manning said the rapid shift to card payments could see Australia “rapidly migrate to a cashless economy”.

“We could get to the point where we have none of it, so that causes issues such as do we need ATMs,” he said.

“There’s been times when I’ve had envelopes under the bed. I’ve squirrelled money away in secret locations from time to time.”

Mr Manning said many older Australians would have to make a “huge adjustment” switching from cash to card payments.

“They are people who are still probably carrying around a physical wallet with physical notes in it,” he said.

“There’s going to be an adjustment that’s required there from that segment of the community.”

The research also found a majority (79 per cent) of consumers get frustrated when they are hit with surcharges when paying by card.

Latest figures from the Reserve Bank of Australia show, in 2019, of all payments made nationally, 63 per cent were by card – this compares to just 26 per cent in 2007.

Self-regulatory body Australian Payment Network’s chief executive officer Andy White said the push towards card payments could “exacerbate that trend” to use plastic to pay more often.

“However, what we’re talking about here is less cash, not cashless,” he said.

“Cash will continue to be used as a fallback payment method.”

But he said some Australians would use COVID-19 as a reason to try “tap and go” payments using a debit and/or credit card or digital wallet.

“Eighty per cent of physical card payments are already contactless,” Mr White said.

“And using your phone or a wearable uses your biometrics including your face or thumb print to authorise payment rather than needing to enter a PIN on a payment terminal.”

The New Payments Platform’s chief executive officer Adrian Lovney said they had seen a huge jump in people using real-time online payments to move money during the COVID-19 pandemic.

“We see a very clear and growing role for the NPP in terms of supporting real-time transfer of value without using cash – getting money into the accounts of those in need and helping businesses to keep payments coming in as well as paying staff,” he said.

@sophieelsworth

Originally published as Australians are being forced to pay by card instead of cash during COVID-19 pandemic