Shoppers hit the sales, but how many are paying in cash?

The Reserve Bank says paying in cash is set to become niche and Australia is moving towards being a completely cash-free society.

Cards are the most popular payment method Source: SBS

Whether it's swiping, tapping or putting in their pin, Australians are increasingly using cards over cash.

"Basically the trend is that people are using cash less, so cash has become less important relatively speaking as a payment instrument," Assistant Business Services Governor at the Reserve Bank, Lindsay Boulton told SBS.

Mr Boulton said wearables, electronic wallets and other e-payment methods are getting some traction but the most significant means of payments remains cards, “both credit and payment".

Recent data from the RBA indicates the average Australian's ATM use has dropped dramatically, down from 40 times a year in 2010 to just 25 times a year now.

Spice Alley in Sydney's CBD is a card-only affair, housing several Asian eateries. If people only have cash on them, they have to load up a special swipe card to pay for food.

"The main motivations for not using cash are staff safety, hygiene and efficiencies," said Marcus Chang, manager of Spice Alley and Kensington Street Holdings chief executive.

"It’s about not spending time standing in a bank [with the day’s profits]."

With holiday shopping in full swing, buskers aren't the only ones feeling the pinch of the tap and go economy.

Charities like The Salvation Army and vendors of The Big Issue magazine have started taking pay-pass to accommodate changing consumer habits.

Not everyone agrees with Reserve Bank Governor Philip Lowe who said last month that paying in cash could soon be considered “niche".

Deakin University consumer behaviour expert Paul Harrison said the unreliability of the internet and power outages means cash will still be king for some time yet.

"The technology itself doesn't necessarily stay reliable," Mr Harrison said.

"We've seen situations where the technology the electronic transaction technology has gone down for long periods, sometimes up to a day or two days. So that has an effect on the economy, on businesses, that has an effect on people being able to buy things."

Australia still falls behind the world's most cashless countries, including Sweden and Canada.

But just last week the Commonwealth Bank launched China's number 1 payment app, Alipay, locally. With 700 million users, it's a clear sign businesses will need to cater for more than cash.