The latest edition of Australia’s Global Cash Index is an interesting read by the PYMNTS research team, in collaboration with Cardtronics, where we find out about the important role played by cash in facilitating the country’s continuous economic growth. Apart from being famous for its natural wonders and sought-after attractions, Australia also holds the record for the longest-lasting GDP growth streak of any nation in history – making it one of the most developed economies in the Asia Pacific region.
Cash has always been integral to the Australian economy. Nevertheless, it is not immune to the prominence of alternative payment tools, which have been shifting its payments landscape. Data suggests that cash usage may decrease by 50% among 19- to 24-years-olds, 40% for 25- to 34-year-olds and 15% among 35- to 44-year-olds in the coming years. Moreover, studies show how card payments are increasing at an average annual rate of 5.4%, from $13,390 in 2007 to $22,659 in 2016 – while the number of ATM cash withdrawals per capita appeared to decrease alongside the increase of card-based payments.
Other key insights of the report include:
Australians using cash may be at a risk of declining, but it continues to retain its supremacy hailing as the preferred payment method by shoppers for smaller transactions, while cards are the go-to for more expensive purchases. In fact, in 2016, the circulation of cash grew at an annual rate of 6% and if it continues to go at this speed, we can expect Australia’s soaring economy to rise with cash behind its impressive leap.
Read the full report below: