Ending the era of " Cash " !

Trying to launder the proceeds of the drug industry by moving a suitcase full of cash through an airport is risky business these days.  Money has virtually become the exceptional way we pay bills and even that is dwindling as we embrace electronic payment transfer systems that replace carrying cash in our wallets or purse.

This is illustrated by our use of ATM's.  In 2010 the average person withdrew cash from an ATM forty times a year.  Today, that rate has fallen to twenty-five and that other payment institution - paying by writing a cheque - has suffered a similar withdrawal.

The business world is fast moving to a cashless society by requiring either direct debit or payment by way of a credit card to the availability of their product or service. This transfer occurs instantaneously without the time consuming and cost of counting banknotes and lodging them with a bank.  In any high volume business, it also eliminates the risk factor from robbery.

Initially, the electronic transfer of money arrived with the computer and that was beyond the grasp of most elderly consumers.  The passage of time has muted that demographic and todays elderly usually carry a mobile phone which is fast becoming the medium needed to pay small  bills.   The era of offering cash to travel on a tram, bus or train has long ended and even arranging the home delivery of a daily newspaper has become a cashless procedure.

This Royal Commission into the banking industry has revealed many unpleasant practices to enhance their profitability and each bank seems to have built an insular wall around its own operations.  When we need to transfer funds from one bank to another it usually takes an incredible five days for " clearance " to be achieved.   Such a delay applies to cheques each bank issues in its own name that requires this clearance delay.

This is entirely artificial because every transaction carries a " BSB " identification which locates the individual branch in the entire banking network and the money transfer occurs electronically.  The Australian banks have been slower than expected to roll out electronic functionality and this Royal Commission is expected to accelerate that function as a result of its criticism.

The rules are fast closing tighter on the money trade.   The law requires reporting anytime cash is tendered in excess of ten thousand dollars and this is causing problems for both the illicit drug trade and the black economy.  The increase in the spread of electronic payments is sharply reducing the availability of legitimate cash operations which could mask money laundering.

In some parts of the world even the most mundane of former cash transactions has entered the electronic age.  In some churches the passing of the plate now encompasses the ability to use a mobile phone to make that contribution.  It also has the ability to achieve discretion, and keep the amount contributed a secret between the parishioner and his or her God.