New transactions: Innovating the way we pay
Over the last ten years the retail banking industry has made significant advances in the way we bank and use our money. With the implementation of internet banking, debit cards, and PayWave, transactional banking looks to be taking a long-term shift into digital territory.
Far less cash than ever before
Cash transactions have been on the decline since electronic payment methods such as EFTPOS were introduced in the 1980s, and more recently since the introduction of PayWave in Australia in the past decade, and have become far more commonplace. The Reserve Bank of Australia (RBA) highlights that previously cash was primarily used for purchases under $10, but these type of transactions are steadily dropping too, with a drop from 99 to 78 per cent in just six years ending 2013.
Cash withdrawals from ATMs have dropped 6.6 per cent between 2015 and 2016, further reflecting the new digital trends. With the ease of contactless card payments and mobile banking there is less need for people to carry cash than ever before.
The debit revolution
The RBA reported in 2016 that debit and credit cards are the most frequent non-cash payment types, with an estimated 6.9 billion card transactions in 2016. There was a 12 per cent rise in debit and credit transactions from the previous year, and the total value of these payments exceeded $530 billion dollars.
Debit cards played a huge role in expanding the market for online shoppers, and due to their versatility, the EFTPOS system has been steadily declining as customers pick up a card that works at the supermarket and on the web, instead of having one for each. Debit cards are more secure than ever with chip and encryption technology to prevent even the sneakiest of skimming techniques. This increased security isn’t limited to just protecting the card, but extends through checkout systems like Visa Checkout and Verified by Visa.
Wave goodbye to swiping
With PayWave, customers can easily “tap and go”, reducing the swiping and manual PIN entry of yesteryear to a minor inconvenience. With more businesses taking up machines with PayWave facilities and more customers getting PayWave capable Visas, PayWave transactions make up an impressive 60 per cent of all Visa transactions at Beyond Bank.
Paying by touch
Tech giants Samsung, Android and Apple have also jumped onto the cashless payment bandwagon, with the recent introduction of their own payment facilities, allowing you to complete transactions from your phone. No longer can you just access your accounts via your mobile banking app, but you can make secure payments through your phone via state of the art biometric authorisation.
With so much change in such a short time, we can barely wait to see what happens in the next few years. Until then, get in contact with Beyond Bank to set yourself up with the newest technology the banking sector has to offer.
Download the Beyond Bank app today!