From cash to e-money: payment systems innovation in Australia

With technological developments, and the changing needs of global and on-line businesses, innovations in retail payment methods have evolved progressively. The retail business has undergone a transformation from main street business to on-line business in the last decade due to globalisation, technological developments, application of the Internet and innovative business models. When commerce goes electronic, the means of paying for goods and services must also go electronic. Paper-based payment systems cannot support the speed, security, privacy and internationalisation necessary for electronic commerce. This chapter is an appraisal of retail payment innovations and changes in payment instruments in Australia in the last decade. It highlights continued primacy of cash for face-to-face payments, growth in payment by cards and other new developments to support evolving e-business models. The need for e-payment systems in e-business, an understanding of payment systems, market developments, payment risks and technological applications to payment methods are also discussed.