Cash is Dying. App-payments surge 200%

New research from Westpac has revealed Australians believe we are quickly becoming a cashless society, and predicts that Australia will be cash free by 2022.

The Westpac Cash Free Report found four in five Australians agree making all electronic payments via a smartphone will soon become the norm, while over half of current payments are already being made electronically. 

According to the research, one third of Australian smartphone users believe monitoring spending and 21% believe tracking their finances has been made easier thanks to smartphone apps built by the leading banks.

In the last 12 months there has been a 200 per cent increase in Westpac customers using their mobile to tap and pay. 

Some recent developments in the area of banking and technology include:

• Cardless Cash
• Fingerprint login
• Tap and Pay
• Hey You App

Hey You App

An example of Westpac embracing technology to look at innovative ways to help their customers create greater efficiencies in their everyday life is the bank's recent investment in smartphone app Hey You through venture capital fund, Reinventure.

The Hey You app is available from the Apple Store, Google Play and Windows Phone Store. Westpac customers can also download the Hey You app via they Hey You link in the Westpac Mobile Banking app. 

 The Hey You app allows Westpac customers to order drinks and food from Hey You affiliate cafe?s directly from their Westpac app. 

"Long wait times for food and drinks after ordering are one of the biggest frustrations for Australians (61 per cent) as we become increasingly time poor and expect items on demand. It is great to be able to invest in a company like Hey You which not only reduces the amount of time Australians spend in queues, but brings a fresh and dynamic approach to cashless payments. As we become a cashless society, four in five (81 per cent) Australian smartphone users agree the ability to pre-order an item using an app before picking it up will become the norm," according to Westpac.

"To stay competitive and relevant in today's market, Australian companies need to be innovative and integrate digital solutions into existing offerings or risk being phased out of the market. More than four in five (83 per cent) Australians agree those businesses that do not provide a digital offering will be left behind." 

Rebekah Campbell, Co-Founder of Hey You, said, "Australian consumers are becoming used to an Uber-like service.  No one enjoys waiting around to order coffee or lunch. To have it paid for and waiting when you arrive feels like a 21st century experience." 

"As well as making the customer's life easier, Hey You helps cafe owners run more efficient businesses. The Hey You app allows cafes to process more orders by removing cash and reducing the time and cost to serve each customer," Ms Campbell said.  

Key findings of the Westpac Cash Free Report

• Australian smartphone users predict most Aussies will be 90 per cent cash-free by October 2027 
• Excluding those who believe Australia will never be cash-free, there is an expectation that Australia will be cash-free by June 2022
• 4 in 5 (81 per cent) Aussie smartphone users agree the ability to pre-order an item using an app before picking it up will become the norm
• 4 in 5 (79 per cent) Aussie smartphone users agree digital wallets (i.e. making electronic payments from a smartphone) will become standard
• 53 per cent of payments made by Aussie smartphone users are cashless
• 33 per cent of Australian smartphone users' lives are made easier by apps by managing their finances
• More than 3 in 5 (61 per cent) Aussie smartphone users find queueing in general to be frustrating 
• Long wait times for food and drinks (after ordering) is the biggest frustration (61 per cent) - with more than half (51 per cent) of Australians being frustrated with customers in front of them taking their time
• Over half (53 per cent) of payments currently made in Australia are cashless
• 79 per cent of Australian smartphone users agree making payments via a smartphone will soon become the norm