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Get ready for cashless and cardless future

AAP logoAAP 23/09/2016

Cash is on its way out and cards could soon follow.

Australians made $8.7 billion in non-cash payments in 2014/15, up from $8.1 billion in the prior year, according to the latest world payments report from technology consultants Capgemini.

That puts Australia in the world's top 10 cashless payment markets by volume, and in the top five countries for cashless payments per person.

In other words, more Australians are opting to use cards and other technology instead of the traditional notes and coins.

With the recent growth of digital wallets, PayPal, ApplePay and other electronic and mobile payments, cards are becoming less relevant for Australian consumers, and costly products for banks to service.

With smartphones deeply entrenched in the Australian market, there will likely be stronger collaboration between banks and financial technology companies, particularly in the development of digital wallets, Capgemini Australia banking practice lead Phil Gomm said.

"Australia is poised to enter a period of digital wallet transformation, as seamless payments begin to change the way we pay," he said.

"There will be the shift from the concept of card present transactions, where the card is presented physically at point of sale, to the new idea of card holder present, confirmed through the use of smart device access verification via biometric and PIN options."

The big four banks already offer Andriod apps allowing their customers to tap their smartphones near eftpos terminals to pay, with no cards required.

There's still a debate about transaction fees beween Apple and three of the big four banks, but ANZ has signed up to the tech giant's digital wallet ApplePay.

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