The paper 'Adoption of Retail Non-Cash Payments in the Australian Economy" is a perfect example of a macro and microeconomics case study. In every transaction taking place, there are two means of paying money. These are cash payments whereby the members exchange cash and non-cash payments whereby the members use other means of payment for example use of checks. The Australian payment system has been under changes for the past years, these changes challenged the Australian government such that they opted for other payment systems. The government implemented reforms that improved the payment systems, however, the new systems are not treated as efficient enough to change the lives of the citizens (Mohini. S, Dianne.
W. 2004). The payment systems used in Australia are; customer electronic clearing system for example cards used by customers to clear their payments. Australian cash distribution and exchange system, for example, the use of check’ s to make payments of large amounts of money. Bulk electronic systems apply to the use of direct entry of cash and this takes place in banks. High-value clearing system is the last and it involves transactions that are regarded to be of high value. The above categories of payment systems are described as non-cash payments.
This accounts for most of the Australian means of payment in which the daily activities and transactions take place through direct entry, checks and card-based payments. The Australian economy has always relied on non-cash payments because they are engaging in transactions that involve large amounts of money. The purpose of such payment systems is to enhance security in the country and therefore encouraging more entrepreneurs to venture into business.
Most of these payments made also results from settling foreign exchange and transactions on securities markets. Adoption of retail non-cash payments in the Australian economy Retail non-cash payments in Australia are subject to net settlement. Since November 2013 direct entry obligations have been settled on the same day instead of deferred as had previously occurred. In the past years, business payments have experienced a decline in the use of checks in a transaction. The decline was observed between the years 2012/2013 whereby analysis was done on the number of business persons who used checks as a means of payment and the results concluded that there was a great decline such that in the past few years, checks were used by most people compared to the current year.
In contrast to a decline in the use of checks as a medium of exchanging money, there has been a rapid adoption on the use of electronic means of transactions in Australia. Most transactions taking place either cash withdrawal or cash deposits are made through electronic systems. Compared to the previous years, people had knowledge on checks payment only and a few used electronic means. The Australian government and the economic department have been experiencing a change in the means of payments whereby they have been forced to adapt to the use of direct entry credits for almost all the aspects of money transactions.
Examples include the use of direct entry on salary payments, and for payments on social security. On the other hand, consumers and entrepreneurs are also embracing the use of direct entry to pay their bills. The Australian government has therefore used direct entry as an important means of payment.
These electronic means of payments have therefore added value on non-cash retail payments and from the analysis, Australian citizens are all shifting towards the use of these systems of payment.
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