4.0 future of cash payment

4.0 future of cash payment

In recent years, more and more consumers are using electronic payments in Australian transactions, while traditional transaction methods (such as cash) are gradually decreasing.  Most commercial companies are no longer limited to traditional payment methods.  Nevertheless, it can still use multiple types of payment methods to replace cash payments, thereby providing public users with more flexible and comprehensive options.  In the future, cash payment will be gradually replaced by new transaction methods. With the development and progress of the times, people’s payment methods have gradually become very fast and convenient. In addition, Australia’s overall demand for cash is still strong.  On the other hand, the demand for cash for non-trading purposes still exists, especially as a reserve of wealth.  Although the traditional method of transaction (cash) has been slowly replaced, cash is still retained as a wealth reserve to prevent the occurrence of unknowns.  For example, in this case of Covid-19, the previously stored cash will reduce the pressure of life.  However, compared with cash payments, bank card payments have fewer errors and higher security. In addition, COVID-19 pneumonia has increased the use of electronic payments.  The main reason is that most users are unable to conduct face-to-face transactions during the epidemic. Under the premise of ensuring security, most users will use electronic payments. On the other hand, according to Australian data, in the 2013 consumer use survey, about  Three-quarters of the respondents said that they took cash from their “wallets”. In addition to daily transactions, the most important reason is to provide funds for emergency transactions. In other respects, it is difficult to predict the need for future cash value storage.  How will it develop.  In addition, there are some users who have hoarding behavior, especially those who have a large amount of cash, which may be affected by personal preferences in the future.  However, future technological development is also progressing.  For example, for some people who value privacy and anonymity, digital currencies may provide a viable alternative to cash reserves.  However, electronic payment is generally popular among younger consumers, which has promoted the development of online payment and electronic payment. In addition, with the development of electronic technology in recent years, electronic payment has gradually become indispensable in people’s lives.  payment method.  However, older people will still rely more on traditional trading methods. In addition, based on macroeconomic factors, lower global and domestic interest rates reduce the opportunity cost of holding cash relative to other assets.  In addition, it is expected that the decline in world interest rates may remain at a low level for a period of time, but any substantial increase in interest rates will increase the opportunity cost of holding cash.  However, over time, most people’s demand for cash may gradually decrease. There is evidence that the number of Australian dollars in circulation at the end of last year increased by 100 Australian dollars, and the most commonly used denomination is as a store of value.  Therefore, the global financial crisis has increased the preventive demand for cash.  As shown in the table below, people’s demand for cash will definitely increase in the future, because people are always worried about future emergencies and will save and hold cash for other purposes.  In general, electronic payment cannot completely replace traditional payment methods in a short period of time. Most users’ demand for cash will continue to grow in the future because people are always worried about emergencies and will reserve and hold for other purposes.  cash.  As shown below