Online shopping could make us cashless by 2021
In March, Australians across the country were advised to give up cash as a means of payment to prevent the spread of COVID-19. And according to new research from Buy Now provider Pay Later (BNPL), Zip, the COVID-19 pandemic may have been the last nail in the coffin for money.
The BNPL platform found ATM usage at an all-time low, down 43% in May, while online spending reportedly doubled from the same period last year, rising by 89%.
Zip co-founder Peter Gray says this preferred payment method might even be the boost many Australian retailers need to grow their online business.
“For businesses, the switch to the Internet and the creation of frictionless payment channels is crucial. Online will become the biggest battleground for Australian retailers, ”he said. “At this rate, it is not unreasonable to consider that Australia could be almost cashless by 2021.”
A similar study from Mastercard found that 30% of consumers plan to make more online purchases in the future, while 51% plan to use less cash and 21% to use contactless. credit card payments as the preferred payment method.
The vast majority (71%) of those surveyed even think contactless payments are here to stay while globally six in 10 believe digital payments will become a permanent part of everyday life.
“The digital economy is the future and there is no doubt that consumers and merchants are embracing this development. Now that people are experimenting and expecting the security, simplicity and fluidity of digital commerce, there is no turning back, ”said Sandeep Malhotra, Head of Product and Innovation at Mastercard.
3 quick tips for safer online shopping
As online shopping continues to gain popularity, so do the scams, frauds, and nasty fees you didn’t expect. So if you plan to shop online only, here are three quick tips for a smooth experience:
Choose your plastic wisely – The last thing you want when shopping online is to have a damn foreign exchange transaction fees. What’s even more frustrating is that they can even happen when buying from an online store in Australia. ACCC research has found that while a store may be Australian, it can still process transactions internationally. So do yourself and your wallet a favor by opting for a credit card that charges no foreign transaction fees.
Trust your instincts – If you come across an online store that doesn’t look quite right, exit the page. This may include such things as typos or low resolution images on the page, no contact information, or a request for payment in the form of gift cards or vouchers.
Read reviews – Before trying an online store, first research the reviews of previous customers. This will give you an overview of the quality of the products or services and the level of customer service.
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