Alternative payment methods gaining currency

The way Australians make and receive payments is continuing to evolve, according to the Payments System Board that sits within the Reserve Bank.

Over the past year, there has been growth in electronic payments, new payment types (e.g. buy now pay later) and the New Payments Platform, according to the board’s annual report.

At the same time, there has been an ongoing decline in cash payments, a trend that has been occurring “for many years”.

The report also said that the Payments System Board would continue its research on central bank digital currencies – a digital form of money that might be issued by the Reserve Bank and used by households and businesses.

“Australians are readily embracing new payment trends, particularly those offering value propositions for greater speed and convenience,” according to the report.

“The bank has an important role in understanding these new technologies and innovations, as well as any implications for the competition, efficiency and stability of the payments system.”