That’s the view of ANZ’s Managing Director Products Bob Belan, who says Australia is following in the footsteps of nations like Sweden, where barely 2 per cent of all transactions are made using cash.
The benefits of this transition are obvious but so are the challenges. While ‘tap and go’ is convenient for consumers and merchants, there’s evidence it is hurting not-for-profit organisations. Indeed, some UK-based charities have reported a 50 per cent drop in cash donations, forcing them to look for an alternative to the traditional tin-rattlers on the street.
It’s a situation likely to get worse. A recent East & Partners report predicts cash payments in Australia will fall to just 5 per cent by 2019.
“New technologies like ‘click to pay’ in-app or electronic invoices and the New Payments Platform which offers real time payment capability will accelerate the shift away from cash transactions,” Belan says.
What does it mean for the outlook for charities and similar philanthropic groups?
Tapping for good
That’s where organisations like Shout For Good come in. ANZ's Shout is partnering with charities such as FightMND and Cancer Council, giving fundraisers and volunteers mobile devices which enable people to donate and buy merchandise in seconds by tapping their card, phone or watch.
“We’re really excited to help solve this problem our charity partners are experiencing around traditional cash fundraising,” Charlie Carpinteri, CEO of Shout For Good says.
“We know we won’t be replacing cash donations any time soon – so right now I see Shout on ANZ BladePay supplementing existing cash fundraising efforts, not replacing them.
“But eventually, as ‘tap to donate’ technology gains acceptance, I see (products like) ANZ BladePay as a real game changer in the not-for-profit sector.”