EP. 1262 CASH IS KING?

Ever wondered how paying with cash could actually make shopping more enjoyable and cost-efficient? In today's episode, we share real-life experiences from North Sydney's vibrant Sunday market, where paying with cash sparked refreshing interactions with local vendors. You'll be surprised by the emotional responses cash payments can elicit, and how this contrasts with the rising dominance of card and mobile transactions. With eye-popping statistics from the Reserve Bank of Australia revealing that 76% of payments are now made by card, up from just 50% in 2019, we dive into what this shift means for your wallet and the way you connect with small businesses.

We explore the profound impact of this payment evolution on both consumers and entrepreneurs, from the conveniences of contactless payments to the often-overlooked benefits of using cash. Learn how carrying cash can help curb your spending and why it might just be the key to building stronger community ties. With contactless payments becoming the norm—94% of in-person card transactions to be exact—discover how this trend shapes our daily habits and financial behaviors. Tune in for an enlightening discussion on the future of money and the choices we make at the checkout.

Transcript

Speaker 1: 0:01

Cash, cash, cash, cash is king. How can cash help you get into your home faster? Stay tuned.

Speaker 2: 0:29

Cash Cash man. I'm the ringleader Cash man, I'm the cashless agent, though I feel bad. I feel really bad.

Speaker 1: 0:37

It's the new generation Guys and girls. I was out at the markets In North Sydney, kirribilli, on Sunday and I was rocking around with a $100 note. And girls. I was out at the markets in north sydney, curabilly, on the one sunday and, um, I was rocking around with a hundred dollar note and I bought. I bought a cactus, my daughter yeah. I bought a lamb roll, I bought a little bracelet, I bought some garlic sauce and every single time I busted out to these market people cash. They will assume you're, though you're paying on card and then when you pay me cash I've got to say it was a. It was a better response. Like you saw, people like, um, they like it.

Speaker 2: 1:19

They love it, and stories like this from the weekend make me feel bad. So I never do that, never, ever, ever. I'm I'm one of the majority which Contact us and I put up some facts this morning and I have to say they're absolutely shocking. They really are shocking. Can I reveal the? Tell me.

Speaker 1: 1:40

Reveal the numbers. Reveal the numbers. Tell us what we don't know.

Speaker 2: 1:44

We're not. I'm not proud of it, but I form a part of this. Let's have a look. Click this. So this is from RBA, reserve Bank of Australia. They've got the best intel, but have a quick look at this. This is staggering. But a quick look at this. It's staggering. First of all, they are definitely seeing card payments up on the trend, but 76% of payments are made with card. Can you believe that?

Speaker 1: 2:19

Wow, 76% of payments made by card 76% of the payments made by card.

Speaker 2: 2:25

Yeah, and that's up from 50% in 2019. So you know, there's four years there where it's just gone up and up and up.

Speaker 1: 2:34

So what was it in 2019?

Speaker 2: 2:37

It was around 50%.

Speaker 1: 2:41

Wow yeah, tap, tap, tap, tap. And you're right, tell me more 13% made with cash.

Speaker 2: 2:52

That's on the way down, not surprisingly. I thought this was interesting. During a typical week, half of the people don't use cash for any payments. I would be one of those. Wow, yeah, definitely. A third of in-person card payments are made with a mobile device. So you know, 33% of people paying with a card are straight off their phone. Yeah, tap, tap. I would 100% be one of those people. 94% of in-person card payments are contactless. Those people, uh, 94 of in-person car payments are contactless. It it's interesting the word contactless, because it's almost like your your interaction with the shopkeeper is just, you know, literally just pressing the phone and that's it. Yeah, um, 18 of payments are online shopping. Amazon, yeah, everything. During a typical week, 29 percent people hold no cash in their wallet. Again, I'll be one of those guys. Third of people use pay id. In the last year that's crazy A third of the population using pay ID. I don't even know what that is. Pay ID is like your Apple wallet.

Speaker 1: 4:20

Why you send money to your mates.

Speaker 2: 4:22

Yeah, I think so, and then 83% of people have automatic payments arranged. There you go. That's the fact.

Speaker 1: 4:38

And studies show that people that rock around with cash actually spend less. When you physically see the money leaving your hand, you're more reluctant to let go when it's in your hand or you'll let go with less of it. And I think for operators in small businesses and particularly in tough times, I find it almost like you. When you want to help a local business, I find it's not endearing. I don't know what the word is, but it's. You know. It's a nice way to pay to support a great business and I think small businesses look at it and go thank you so much.

Speaker 1: 5:27

I saw it on the weekend at these markets. I was like and each time I pay, people are like it and go thank you so much. I saw it on the weekend at these markets. I was like and each time I pay people are like thank you, thank you. It's like that's cool. Or tipping cash, these guys, if you're not, you know. I guess the whole idea of tipping is you know that that person gets it, but once you apply relevant tax rates and stuff, the tipping gets watered down. It's interesting. It's really interesting, I think the word is considerate.

Speaker 2: 5:57

You're going against the grain, everyone else, and there's obviously a love for it.

Speaker 1: 6:05

Well, look at your numbers that you're going through now. That's certainly against the grain. If you are, and I think if you're trying to save for a property, save for a deposit, put cash in your back pocket for a month and apparently you'll spend less, because when you're tapping it it feels like you're spending moneyous frivolously than when you part with cash um out of your hand. So if you're buying property, um, get, get some cash out. Pay with cash in tough times. If you want to support businesses, you love pay them with cash, cash, cash, cash, cash, cash, cash the younger generation doesn't like it.

Speaker 2: 6:50

That seems to be the other trend. Um, and and I think it's not know people of cash. I reckon people underestimate how much money is lost through through. You know boss charges like that. You know we were saying a couple of percent on the way in, sometimes a couple of sound way out for a business. You know they've got a look at me, all these little machine.

Speaker 1: 7:15

I'm not. I'm not supporting tax avoidance, but I am. It's just like I think you know, when there's the 10% GST component to it, there's the fact that you know they're paying on their product 10% when they're buying stuff from these operators. There's the fact that you know they're going to be paying income tax. There's the fact that they're going to be paying merchant fees. So I think you know if you really want to whack some nice dollars onto the bottom line of these operators cash is king.

Speaker 2: 7:53

Yeah, there you go. I think that's a snappy show.

Speaker 1: 7:58

I reckon that's a snappy show. It's something to think about on your Monday for the week in the month ahead. And, guys, support your businesses, your local businesses, if you can with a bit of cash. Save some of your cash by using cash rather than and that's a great, that that's a show. Billy, have a great weekend. What do you got on this week? I?

Speaker 2: 8:19

Might go get some cash out.

Speaker 1: 8:22

I reckon Put some cash in your pocket.

Speaker 2: 8:25

Get some cash in the pocket. This week's going to be catching up on a little bit of weekend antics. Had an offer accepted Saturday, so we're getting that exchanged today.

Speaker 1: 8:37

Solid. Solid this week for me also is weight loss. One week I'm 117 kilos.

Speaker 2: 8:44

I told my Rome wasn't built in a day. Don't go crazy.

Speaker 1: 8:49

All in good time we'll get there and go down to this week. I'm going down to 115. I'll tell you next Monday, okay guys have a great week out there. Love you. See you, bye.