Paper transactions heading south – Pulp & Paper Edge

The number of cheques being written is continuing to decline, falling from 27% of all financial transactions in 1999, to only 6% in 2010.

The use of paper-based currency i.e. cash, is also becoming less popular as more people turn to eftpos, credit cards and direct debit transactions. With the overall the number of transactions rising by 7.6% pa, use of ATMs for withdrawals is lagging at 5.8%.

According to the latest issue of Pulp & Paper Edge, the rise of electronic transactions is set to continue. One bright spot for the paper industry is the increase in the amount of thermal paper with shipments growing at an average rate of 3.1% pa.

A further development is the resilience of the envelope market in the face of falling mail volumes from Australia Post. Pulp & Paper Edge reports there was a decline in envelope demand during the global financial crisis.

For most quarters since the end of 2008, shipments have been increasing. Therefore, while the amount of billing being distributed in envelopes through the post is understood to have stayed reasonably stable, and the evidence shows more transaction payments are being made electronically, the improvements in the envelope market are likely to be driven by increasing volumes of business to business and business to consumer advertising material.
In another story in this months Edge, European fears of printing inks contaminating food packages may threaten the use of recycled materials. It is claimed that mineral oils are coming from the inks on newsprint being recycled to make the boxes.

This issue has grabbed front-page headlines in Europe with the focus on cancer scares. Already a leading cereal firm, Jordans, has stopped using recycled cardboard while Kellogg's and Weetabix said they were taking steps to reduce the amount of mineral oil in their packaging. Industry observers note that the situation in Australia is very different with an estimated less that 5% newsprint used in Petrie, which is the only carton board mill here.