I would like to borrow a theme from Jim Collins, the management researcher and writer. His two best-known works, Built to Last and Good to Great, are evidence-based studies of what makes commercial organisations outperform over the long term. APCA’s own core principles – our values, purpose, unique positioning, member benefit proposition and vision – were developed using the Collins framework. You can find them on our website. Collins has the luxury of something to measure: he looks at relative increase in total shareholder value of listed companies against competitive peers over long periods of time. Then he tries to work out how the top performers got there in the first place, and how they stay on top. These days there is plenty of debate over the validity of this method but its influence on corporate strategic thinking is undeniable. Unfortunately, neat quantitative measures of achievement are not generally available for payment systems. But the long-term, structural orientation of Collins’ work aligns well with broader payments system evolution: how does the industry build a payments system that will stand the test of time, and respond to the unknowable challenges of the future? It’s not about any one strategy or programme, but the overall structure, culture and orientation.
Cheques now represent just 1.2% of all non-cash transactions as Australians show a clear preference for electronic payment methods.
Over the past 10 years, cheque use has declined by nearly 73% and the rate of decline is accelerating. Simultaneously, cash use is declining with ATM use dropping a further 6.6% in the 2016 financial year.
These declines have been driven by the continued increase of digital transactions. The use of debit and credit cards grew by 12.1% this year, while direct entry use increased by 7.2%. Supporting this growth is the increase in digital literacy. Over 65s in Australia are embracing online banking with over half of older internet users performing online banking transactions. Meanwhile, online spend is diversifying as it matures. Takeaway Food had the fastest annual growth of 56.1% with overall online sales up by 13.5%.
Check out our Australia’s Digital Economy Infographic below or click here to read the full Milestones Report November 2016.