Consumers in Norway are being touted as the pioneers of the cashless society as a study by market research company Synovate reveals a third of Norwegians expect to see electronic payments replace cash.
The research, carried out on behalf of Nordic IT company EDB ErgoGroup, found that 34% of respondents answered yes to the question Do you expect to see notes and coins disappear as a means of payment? 45% also said they carry little to no cash, with 11% carrying no cash at all.
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Cash withdrawals from Norwegian minibank terminals have declined by 25% since 2005, with just over 70m withdrawals made by customers in 2010. Yet the average amount withdrawn continues to increase from NOK 1,239 in 2009 to NOK 1,276 in 2010.
These people form a group of the population that has already got used to a new cashless reality, and they can be seen as pioneers for the payment methods of the future, said John-Arne Haugerud, deputy CEO of EDB ErgoGroup and responsible for business development.
EDB ErgoGroup estimates that 5m customers hold internet banking account agreements with Norwegian banks, up from 1.7m in 2003. It claims that over the intervening years virtually the entire Norwegian population have become internet banking users. The number of bills paid by internet banking has also increased by 5.6% in 2010 according to the IT company.
Haugerud claims that the technological developments in the payments industry have already progressed so far that Norwegian customers have little need for notes and coins. Whether it paying at a toll station on a road in the middle of the mountains or when buying a soft drink from a vending machine, he argues there is always an electronic payment method available.
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By GlobalDataCash in the pocket, at least in the form of notes and coins as we know it today, will disappear as the new technology becomes available and enough customers are happy to adopt it, said Haugerud.
