Small change to become thing of the past

Wallets and credit cards may soon become a thing of the past. They will be replaced by microchips embedded in mobile phones, watches or other portable devices.

Peter Evers Australian Central's chief executive believes that cash will be replaced for most transactions in five to seven years. He stated that cash will disappear and there will be other forms of carrying cash, stored value in your phone or some other object. It will transfer automatically.

In Hong Kong and Singapore, the low-value transactions have already disappeared and you can't go anywhere, even on public transport, without pre-purchasing a card.

Mr. Evers stated that he thought the Australian Payments Systems Board was very much on top of it and was trying to move things that way, but hadn't publicly put things in place just yet.

Buying groceries with your mobile or watch?

Chris Ward Banksa's general manager for strategy and operations felt that Australia would follow the offshore lead, with small cash transactions disappearing first. People wanting to purchase an item from the deli with cash will no longer be able to do so; they will have to buy it with their chip.

John Oliver state manager of the Bendigo Bank and Adelaide Bank SA/NT said that it would be easier for retailers to use electronic transactions rather than manual cash transactions.

Greg Connor Savings and Loans chief executive felt that the concept of the wallet would go. Currently we have a wallet or a purse; shortly it will be a chip in your phone or your watch or something like that as your access.

Credit Cards will disappear too?

Mr. Evers also stated that credit cards were also on the way out.

People will still be able to have access to credit, only it will be there through the mobile phone. The card was only there as means of identification, and that there could be another way of proving identity. Revolving credit will still be available.

Published on June 6-rd, 2009 in Credit Cards
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

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