New technology is paving the way towards a totally cashless future. Electronic money transfers between banks will soon be finalised in less than a minute.
Under the new system, customers will be able to transfer money between two separate financial institutions in real time. The New Payment Platform system acts like a secure network between two separate banks, for example, National Australia Bank and Commonwealth Bank.
Currently, the funds go through a lengthy settlement process overseen by the Reserve Bank.
Transferring money from one financial institution to another can take between two to five days. The new technology has also raised security concerns. Banks are ensuring they're doing extra to protect their customers from fraud. While some finance experts are predicting a cashless society by 2020.
