Nostalgia is a common human trait. How many of us have looked fondly back on years gone by, reminiscing about the wonders of VHS, television sets that weigh only slightly less than an adult African elephant, and phones that you couldn't actually walk around with? Like time and tide, technology waits for no one, and innovative new advances continue to emerge across all facets of life.
The way in which humans pay for goods is one such area, and over the years, we've seen many different methods of exchanging money for food, tax or buying a new car. Here are two common ways to pay that will no longer be with us in the near future.
The humble cheque has been in use for well over three centuries, but only recently has its decline been so keenly felt. The rise of instant electronic payment (via smartphones or otherwise) has sounded the death knell for the clunky, slow-moving cheque, with many retailers no longer accepting this once-thriving method of payment.
The rise of instant electronic payment has sounded the death knell for the clunky, slow-moving cheque.
According to the Australian Payments Clearing Association, cheque usage has fallen by 70 per cent over the last 10 years, and accounts for less than 5 per cent of non-cash payments today. Sadly for the cheque, it looks as though waiting three to five business days for the payment to clear just doesn't cut the mustard in today's fast-paced world.
Since its birth the best part of 50 years ago, the credit card has gone from strength to strength, finding a snug little slot in many an Australian's wallet. However, with the rise of the credit card also came spiralling debt, with Aussies owing just shy of AU$32 billion, according to the Australian Securities and Investments Commission. That's approximately $4,300 per credit card holder, so it's easy to see how we've fallen into such debt.
With credit cards in such constant use, why do we say that they are in decline? It's due to the rise and rise of online shopping. Simply put, the little piece of plastic wasn't designed with web retail in mind, with customers turning to dedicated online payment services, such as PayPal, to purchase goods. Having to type in that long credit card number each time they pay for something online is turning people off, as are the prohibitively high processing fees and certain rates of interest. Throw into the mix the risk of fraud and it's easy to see why the credit card could be on its way out.
Be sure to get in touch with the expert team at CAPE to find out more about our services – we still accept cheques!