Cash Usage In Australia Essay

1749 words - 7 pages

Executive Summary

The main focus of this essay is to discuss the changing trends of consumers’ payment methods and in particular cash usage in the 21st century. This essay discusses the downward trend of cash as a major payment structure and the increase in cashless transactions. We will refer to recent studies by the RBA and personal surveys and data collected and collated by this project team in this report and outlay our findings.
Introduction
As the demand for newer more convenient methods of payment systems increases, so to does the range of options that become available to consumers. In recent years the need to discover more convenient ways of paying for goods and services has ...view middle of the document...

It went on further to state that whilst cash was still heavily relied on, cash use as a whole of payment methods had declined to the earlier study carried out in 2007. Cards were shown to be on the rise and a preferred method of payment at point of sale.

Whilst this shows results over a wide range of participants, it is easy to be blasé about these results and the full impact of this survey conducted by RBA. We as a group were asked to carry out our own survey based on RBA’s surveys to see if this in fact was the case. Each group member surveyed 6 people each with the leader surveying eight. Results were collated as follows:
The Survey results.
A total of 20 Individuals were asked to record their daily transactions, detailing dollar value and item. These included details of every purchase, bill payment and cash withdrawal made over a five day period and how this was paid, e.g. cash, credit card, cheque, b-pay, the type of merchant to which the payment was made and whether it was made in person or over another medium being phone/internet. After this five day period or recording daily transactions, a survey went out requesting Age range, Income range, preference of payment method, likelihood of payment method dependent on transaction value, and cash withdrawal habits.
Sex | Age |
Female | 15 |
Female | 25 |
Female | 26 |
Female | 28 |
Female | 29 |
Female | 30 |
Female | 34 |
Female | 35 |
Female | 41 |
Female | 42 |
Female | 43 |
Female | 46 |
Female | 65 |
Male | 22 |
Male | 23 |
Male | 25 |
Male | 27 |
Male | 28 |
Male | 31 |
Male | 40 |

Of the respondents’ surveyed, the following results were obtained.
The student surveys showed that whereas the RBA results mapped across wide variety of participants, our results differed in that cash played a predominant role in day to day transactions. Consumers from our surveys used cash considerably more on a daily basis then any other methods which were reserved for high value, once in a while purchases. Coffee and lunches were the heavy winners for cash usage. Moving up the spending list meant that different payment methods were used.

Survey report:

The cash is particularly dominant for low – value transactions for very marked reasons. Firstly, spending on a daily basis, not taking into account special occasions, is in actuality predominantly for low value transactions under $50. In these cases speed and convenience win out with Cash being the preferred method. Another reason was that it was the only method available with merchants either having only cash facilities available as the cost of having merchant facilities outweighed the benefits of offering a variety of payment options to customers; or limited card payments to transactions above a given value. In any case, a pattern started to emerge. It was discovered that dependant on age range you could see a pattern of who was likely to transact with cash a lot more.
Reason |...

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