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Coffee, cash, and culture: Cashless utopia not a fit for everyone

September 10, 2023 — 12.01am

My favourite thing about Friday mornings is that my husband and I walk our dog to our favourite local cafe (Golden Child, in Glen Iris – if you haven’t had their coffee, you need to) grab a coffee and enjoy the morning together before we get stuck into wrapping up the workweek.

Usually, it’s a relaxing walk where we discuss our plans for the weekend and beyond, but this week – we found ourselves deep in conversation about the almost cashless society we live in now and how reliant we are on digital payment methods – after our local cafe was impacted by Square’s service disruption and outages, which forced customers all over the country to pay cash, transfer money via PayID, negotiate IOU’s or the businesses they were trying to transact with would lose business.

The sudden cost impost of everything from our mortgages to our supermarket trips requires some sort of strategy heading into the new year.

The sudden cost impost of everything from our mortgages to our supermarket trips requires some sort of strategy heading into the new year.Credit: Dionne Gain

It prompted for me a deeper conversation, especially in light of our impeding referendum about how a cashless society may feel a lot more secure for many, but can also be prohibitive for a number of communities, particularly those in regional areas, those in emergency situations, Indigenous Australians, new immigrants, sex workers and the elderly.

Last year the Reserve Bank of Australia (RBA) reported that cash accounted for just 13 per cent of all payments made. Which makes a lot of sense if you remember that cash payments plummeted during the pandemic, with local cafes and shops not accepting cash and online shopping surging.

To further amplify this, the major banks like Commonwealth Bank, Westpac, NAB, and ANZ have been sharpening their focus on digital transactions, even opening cashless branches.

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Between June 2017 and July 2022, Australia saw over 1,600 bank branches shut down, with a ‘disproportionate number’ affecting regional communities. It’s not just me worrying about these communities, a number of Indigenous groups and social welfare advocates have sharply criticised a government proposal they believe solidifies cashless welfare strategies, which they argue unfairly target First Nations communities.

We already know that Indigenous Australians face significant disparities compared to their non-first nations counterparts. Data I’ve taken from the Australian Bureau of Statistics (ABS) shows that our Indigenous community experiences higher unemployment rates, lower levels of educational attainment, and shorter life expectancies – which are all things we should be ashamed of, and all are things we need to talk about more regularly in order to amend.

In 2023, the life expectancy for Aboriginal and Torres Strait Islander men is about 8.6 years less than non-Indigenous men, while for women, the difference is 7.8 years. Furthermore, only 65 per cent of Indigenous young adults (aged 20–24) achieve Year 12 or equivalent qualifications, compared to 89 per cent of non-Indigenous young adults.

A digital welfare system, without careful implementation, could exacerbate these pre-existing inequalities. It underscores the pressing need to place Indigenous communities at the forefront of decision-making processes, ensuring policies holistically support their welfare rather than further alienate them – which whether consciously or unconsciously we are doing when pushing aggressively towards a cashless society.

To get political for a moment, this is also why I will be voting yes to recognise Indigenous Australians in the referendum because we need to listen more to our Indigenous communities about matters affection their communities, and make a practical difference with concrete results.

Australians will vote on a referendum to amend the Constitution to recognise First Peoples of Australia and establish an Aboriginal and Torres Strait Islander Voice to parliament.

Australians will vote on a referendum to amend the Constitution to recognise First Peoples of Australia and establish an Aboriginal and Torres Strait Islander Voice to parliament. Credit: James Elsby/ Getty

Listening to the radio on the way into the office this week, Jase Hawkins drew a brilliant comparison about the way we treat our First Nations peoples in comparison to how New Zealand has seamlessly integrated Māori culture into its national identity through official recognition of the Māori parliamentary seats, and the establishment of the Waitangi Tribunal to address historical grievances, which was a stark reminder that Australia’s approach towards its Indigenous communities remains more fragmented.

And he’s absolutely correct, we should be drawing inspiration from New Zealand to ensure direct political representation for Indigenous Australians, but I digress. The argument for increased digital transactions remains though, and rests largely on ever-evolving technology, convenience and safety.

However, this convenience is periodically compromised due to technology failures (like we saw on Friday with Square going down), and safety being compromised by cyberattacks, scams and fraud. Additionally, the RBA has noted that many still have privacy and security concerns related to electronic payments.

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In the rhythmic cadence of our modern society, it’s easy to be swept up in the allure of digital advancements, often overlooking those who might be left behind. It’s important to stop thinking so much about ourselves and our own convenience, and start considering the impact it has on others.

As we embrace the convenience of a cashless world, it’s essential to recognise that inclusivity isn’t just about keeping pace with technology, but ensuring everyone has a seat at the table of progress.

My Friday morning cafe experience is hindered only slightly by the need to PAY ID the cafe money, juxtaposed with the larger concerns of a shifting societal paradigm, underscores the importance of an empathetic approach.

Like the heartwarming integration of the Māori culture in New Zealand, Australia should endeavour to champion a future that honours its diverse tapestry, where tradition and technology coalesce for the benefit of all.

Victoria Devine is an award-winning retired financial adviser, best-selling author, and host of Australia’s number one finance podcast, She’s on the Money. Victoria is also the founder and co-director of Zella Money.

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