Like many areas of life that technology has altered beyond recognition, the move away from physical cash started gradually before accelerating so swiftly it’s left more than a few heads spinning.

In a ‘cashless society’ all, or most, financial transactions are conducted electronically, through cards, online banking, or mobile phone payment apps.

It’s a particularly hot topic across the Tasman, with many of Australia’s biggest banks announcing they’ll no longer be handling cash in branches. One expert – economics professor Richard Holden – predicts there’ll be no physical money at all in Australia by the end of the decade.

“I think we’ll be actually cashless by 2030,” he said in a recent interview.

The rapid uptake of electronic transactions is driven by convenience, security, and efficiency, with businesses less vulnerable to robberies if they don’t have money on the premises, while also saving time not having to count cash or physically visit a bank to deposit it.

In fact, the benefits are so great that an increasing number of businesses no longer accept cash. And more and more people are leaving their wallets at home on purpose, simply relying on payment apps on their phone to pay for things.

You’ve probably adjusted to the demise of the chequebook and the rise of tap-and-go bank cards, as well as the shift to online banking and direct debits that let you pay your bills without lifting a finger - but would you be comfortable losing access to cash entirely?

Older people can be particularly reluctant to conduct all of their financial affairs online. For those who relied on physical currency for most of their lives, the tangible nature of cash can provide a sense of security and familiarity unmatched by numbers on a screen. This can lead to feelings of uncertainty and vulnerability, which are only amplified for those individuals who are intimidated by the world of computers, smartphones, and apps.

Further, for many seniors, a trip to the bank or local store isn’t just about ticking another chore off their list, but also an opportunity for social interaction. The shift to online banking and cashless transactions might inadvertently increase their isolation.

The good news is that cash is unlikely to disappear completely in New Zealand. The Reserve Bank (RBNZ) publishes quarterly data on cash use and its latest release indicates 48% of us still use cash to pay for everyday things.

Ian Woolford, RBNZ’s director of money and cash said in a recent interview that he believes maintaining the cash system is both a current and future need.

“I don’t buy into a binary narrative involving the death of cash and the rise of digital alternatives because these are not pure substitutes for each other, and we know from our research that the public values the option of cash,” he said.