Australian businesses reported that just 6.6 per cent of all payments in 2017 were made with cash, down from 56 per cent from 2012. The figures were derived from interviews with more than 2,240 Australian merchants by East & Partners. Meanwhile, credit card payments at the point of sale decreased by nearly 20 per cent, in stark contrast to online payments, which surged 184 per cent over the same period. Similarly, payments via bank issued debit cards, such as Visa and MasterCard, increased 78 per cent since 2012, to reach 24 per cent of all transactions.The results align with ATM withdrawal figures released by the Reserve Bank of Australia in March 2017, said the analysts at East & Partners. According to the RBA, 7.7 per cent fewer withdrawals occurred in 2016, compared to the year prior, with the total value also dropping by around four per cent. "The emergence of contactless, mobile and wearable payment technology has pushed the preference for debit and credit cards beyond cash usage, as more consumers opt for those for lower value purchases," said Martin Smith, head of markets analysis at East & Partners. Mirroring the increase in usage and customers' needs, merchants interviewed for this research reported their key payment product priorities over the next two years are internet payment platforms, and mobile payments. The report also found the RBA's surcharging rules made a marked impact on fees and charges.In a bid to recoup the cost of card acceptance, 58.5 per cent of merchants said they publish an explicit transaction or booking fee, while 40 per cent increase product pricing, and bundle the acceptance cost. The report found that the larger the business, the more likely they are to bundle surcharging into higher product pricing. "The changes instigated by the Reserve Bank, which fully came into effect in September 2017 have clearly worked and is benefitting retail and business customers alike," said Smith.