The COVID Inspired Cash-crash Amidst a Digital Payments Boom The move to contact-less payments in a lock-down has perhaps sped up the demise of cash with Australia’s demand of coins halving in the last five years, according to the Royal Australian Mint.The Reserve Bank of Australia monthly retail data report for June revealed more than 70% of transactions were done via debit cards alone. Whilst the Australian Government’s suite of lock-down support measures provide a near-term budget challenge, the move to online payments does put further pressure on the cash economy as plastic trumps cash. The follow-on response as to who the beneficiaries of electronic payments would automatically assume that Australia’s banks would be in the proverbial box seat but the reality is one that belies the pressure the traditional banking system now faces. |