NZ on way to becoming cashless society

New Zealand is well on the way to becoming a cashless society, according to a survey. 

Consultancy firm KPMG's 19th survey of financial institutions out today showed a 10.6 per cent increase in the number of eftpos transactions in 2004 over 2003. This followed a 14.9 per cent increase the previous year. 

There were 741 million eftpos transactions in 2004 worth $41.3 billion. 

It equates to one transaction by every man, woman and child every two days.

During 2004 there was a 20 per cent in the number of eftpos terminals, to a total of 120,000. The number of ATM grew to 20 per cent. 

There was also a 25 per cent increase in the number of customers doing banking over the internet -- representing around 30 per cent of all bank customers.

Godfrey Boyce, deputy chairman of KPMG's banking and finance group, said the challenge was for banks to ensure a balance between efficient online banking and safeguarding the security of their customers.  

Banks estimate that only around 5-10 per cent of their business is now conducted over-the-counter as eftpos, ATM, internet and telephone banking far outweighed cash and cheque transactions. 

One bank has brought its non- electronic transactions down to 3 per cent of its total, Mr Boyce said.  

- NZPA