What you need to know about transactions in Australia
A new type of transaction is now available to anyone wanting to conduct a business in Australia, a new report from the Financial Post has revealed.
Key points:The report shows there are around 1.6 million Australian businesses that use the electronic payment system that is the world’s third-largest after China and the United States.
The digital currency is currently the second-largest source of business activity in Australia after the Australian dollar, but the report warns the digital currency will be on the decline if it is not taken more seriously and regulated.
The FT understands the digital payment system, which is currently being developed by the Australian Bureau of Statistics (ABS), has been described as the “gold standard” in Australia.
The new report, ‘Digital Payments and the Australian Economy: A Future Worth Living’, found there are more than 1.5 million Australian business transactions using the digital payments system that has a value of more than $50 billion.
The report says there are 2.1 million transactions that occur via mobile phones, including around 100,000 online transactions, and around 1 million payments using cash.
While the FT has already reported on the digital system’s rapid growth, the report highlights the difficulties that many Australians face when conducting transactions in the digital world.
The use of digital payments in Australia has grown exponentially, with around 80 per cent of transactions now being made using digital technology.
“The digital payments industry is now worth $2.6 trillion [and] is projected to grow to $6.6 billion by 2019,” the report says.
“For the foreseeable future, however, digital payments will be a major challenge for Australian businesses as they struggle to adapt to the growing digital environment and regulatory demands that are being imposed.”
The digital payment industry, which includes credit cards, debit cards and prepaid cards, was valued at $2 trillion in 2016.
The financial crisis caused many businesses to close and the digital platform has been widely blamed for the slow pace of change.
The Australian Bureau for Statistics (ABCS) said there was “still significant scope” for the digital industry to grow in Australia but that there were many challenges ahead, including:The digital platform is a cash-based system that can be used for almost anything, such as credit card payments, with transactions usually occurring in cash.
The payments system is currently undergoing a major overhaul with a focus on speed, accuracy and security.
There is also a need to introduce a more streamlined system for processing transactions.
The changes are expected to create a significant cost savings for businesses, as they will be able to spend less time processing payments and more time on other aspects of their business.
However, the FT reports the digital money is expected to see a significant decrease in value over the next decade.
It found the digital currencies value will be “relatively stable” over the medium to long term as a whole, and is forecast to increase by $6 trillion over the course of the decade.
The ABCS said the digital economy is “on the path to becoming the world-wide leader in digital payments”, but that the digital financial system is “currently under-regulated, poorly managed and heavily taxed”.
“In short, the digital future is uncertain and it will be up to Australia’s government and the private sector to ensure Australia is leading the way in digital innovation and digital finance,” it said.
The Financial Post is a national daily newspaper that caters for readers in all 50 states and territories.