Irish consumers spent €53 million per day using contactless payments during Q4 of 2022 according to the Banking & Payments Federation Ireland (BPFI).
This was the highest daily spend since the BPFI began recording the data in 2016.
Almost €17.9 billion in contactless payments were made across the year, up 31.4% on 2021.
Cash, while still a major player, is no longer as dominant as it once was.
Concerns as to how this rapid change may affect the elderly or small business owners were raised in the Dáil last month when a Protection of Cash as Legal Tender motion was brought by the Rural Independent Group.
As part of The Conversation from RTÉ's Upfront with Katie Hannon, we asked two people to join our WhatsApp group to discuss whether concerns around a move toward a cashless society are merited.
John Lowe is John Lowe is founder and Managing Director of Money Doctors.
Michael Collins is a TD for Cork South West and a member of the Rural Independent Group.
John Lowe: Sweden, Brazil and China are among a handful of countries trending toward becoming cashless societies. Covid has been a major help to aiding this transition.
Contactless payment have increased from 16 million in Q1 of 2016 to 268 million in Q3 of 2022*.
[*Editor's note: Figure taken from a Banking & Payments Federation Ireland (BPFI) report].
I for one welcome this change.
There are a number of advantages. Reduced risk of physical loss or theft, better budgeting for both consumers and businesses and no potential for spreading disease, like during covid.
Michael Collins: A cashless society is ok for those who can manage cards and online facilities.
There are many intelligent elderly people who can’t adapt. Many with intellectual difficulties can use cash but can't use other facilities.
I am glad to see the GAA are to return to taking cash for tickets following an outcry in Cork. I am also glad that following a national outcry, Allied Irish Bank (AIB) stood back from making their banks cashless*.
[Editor’s note: 'We got it wrong' - AIB CEO on plan to turn 70 branches cashless].
So, cash will now play an important role going forward as it has for the previous generation.
I was in a shop recently in west Cork. The staff at the till were apologising to customers that the card terminal had broken down.
I was fifth or sixth in the queue and three customers had to put their shopping back and the rest pulled cash out of their pockets, paid for their goods and left.
I use cash and card and at Christmas my card broke and only for cash I would have been left borrowing money.
Yes, it's seldom these things happen but they do, and we are lucky to have the option of cash.
John Lowe: The Mardyke Arena [in Cork] is fully cashless now and will stay that way. I agree not everyone over 60 may want to involve themselves in technology but it is not rocket-science and certainly I come across a lot of 'elderly' people who embrace technology.
It will also hit the drug traffickers hard.
Michael Collins: Every elderly person goes for their pensions on Friday which they get in the post office over the counter. They then purchase their shopping carefully, so they know they have cash left to pay bills.
John Lowe: Can appreciate this. They don't like change, but change can be a good thing. I also went to London for a Tottenham game and took £300 with me. I brought back £300. The stadium is completely cashless. Taxi drivers have machines in every cab.
Michael Collins: What about communions or confirmations. Do we put a bank card in an envelope? No. We kindly give a little cash so they can get something.
John Lowe: Better still, bring the child down to a post office, credit union or bank and open an account. The average communion hoard is €1,000. Would you fancy your daughter walking down main street with her pockets bulging?
Michael Collins: I have no issue with card payments, but it must work side by side with cash. The one thing I do remember is during Christmas when I was without a card and was using cash, I looked at everything I bought and was pre-thinking of the cost, which I never do when I use card.
I just tap away and worry later. Many young people are using card payments and they tell me themselves that they have no money in their accounts at the beginning of a lot of weeks.
I agree with opening an account with the credit union. No better thing to do for a child - you couldn’t better the look on a child's face when they open the card and nice crispy €50 note or a couple of them falls to the floor. The joy in a child's face tells it all.
John Lowe: Yes, I would agree on the cards. People don't see limits on their card, they see it as a challenge to spend.
Michael Collins: I was heading to a local GAA match in Cork last year and was halfway up when a friend rang me saying he would meet me, but dropped a bombshell saying, 'you can't pay going in you must book the ticket.’
I slammed the brakes and was turning to go home as I said I'm late and don't have the time to purchase online but my friend said turn back I will get it for you which he did, and I then paid him cash when I met him.
I'm not having a go at the GAA, but they want online ticket purchases but then you walk around inside the pitch and they’re wanting cash for programmes.
John Lowe: I subscribe to Ticketmaster. Not only can I buy tickets online and see where I am seated but the tickets are downloaded onto my app. Tomorrow I’m bringing five guests to Andre Rieu at the 3Arena.
Anything that makes life easier I am for. Less hassle. I have both FreeNow and Uber apps. They have revolutionised the taxi business.
Michael Collins: As I said earlier I have no problem with card payment but it must work side by side with cash.
The proof of this is when AIB wanted to go cashless there was national uproar so the hunger for cash rolls on which gives great ease of mind to all of society.
John Lowe: Apparently 28% of Europeans rank cash as their favourite payment method. I do believe cash will never go away. Already the government are tabling a bill for next year to make sure shops and cafés accept cash and that banks offer reasonable access to cash.
Good to talk to you Michael.
Read last week's edition of The Conversation, where we asked whether flavoured vaping products should be banned, here.
