Tap-and-Go Nation: Inside Australia’s $160 Billion Cashless Boom
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Remember the days when paying for groceries meant fumbling through your wallet for a $20 note or digging out the correct change? For many Australians – especially our seniors – those days are starting to feel like a distant memory. Australia is in the midst of a “tap-and-go” revolution, with more people than ever swapping cash for cards and smartphones.
In fact, Aussies made a staggering $160 billion worth of payments through mobile wallets last year. That’s not a typo – $160 billion in tap-and-go transactions on phones and watches, as we increasingly embrace the convenience of cashless technology.
But amid this digital payments boom, a big question looms: what does it all mean for older Australians who grew up in a world of paper notes and face-to-face banking?
In this editorial, we’ll explore Australia’s rapid shift towards cashless payments – the eye-popping stats, the reasons it’s happening, and the mixed feelings it’s stirring, especially among seniors.
We’ll look at why so many people are ditching cash, how fast ATMs and bank branches are vanishing, and what’s being done to ensure nobody (including our less tech-savvy elders) gets left behind. So grab a cuppa, settle in, and let’s dive into the great Aussie cashless boom – an astounding trend that’s changing how we all pay, whether we’re ready or not.
To put that in perspective, tapping your phone is now 11 times more common than withdrawing cash from an ATM. There were only 353 million ATM withdrawals in the same period, worth around $106 billion. For the first time ever, digital wallet payments have overtaken ATM cash withdrawals in total value in Australia.
Think about that: the quick tap of a phone or watch has eclipsed the once-ubiquitous trip to the ATM. The value of mobile wallet transactions has grown 23-fold since 2019, rising 28% in the last year alone. It’s a seismic shift in how we handle money. Just a few years ago, mobile payments were a novelty; now they’re mainstream.
ABA chief executive Anna Bligh sums it up as “a massive transformation in how people bank in this country,” noting that “making payments with your phone is now the norm for millions of customers”.
Importantly, this isn’t just about tech-savvy teens buying smoothies with their smartphones – nearly everyone is getting on board. According to the ABA, a whopping 99.3% of customer-bank interactions now happen via digital channels. That figure includes everything from internet banking logins to tapping your debit card at the checkout.
Essentially, almost all of our dealings with banks (whether checking balances, paying bills, or transferring money) are now done online or on a device.
Meanwhile, the old-fashioned ways are fading fast: in-person bank branch interactions have plunged by 51% since 2019. Fewer people are walking into branches, and cash withdrawals keep declining year after year (down about 9% annually since 2019, according to the ABA).
These trends paint a clear picture – Australia is embracing digital payments at breakneck speed. From big cities to country towns, tapping a card or phone to pay has become second nature.
We’re even ahead of some other countries: our cashless uptake is on par with places like the UK, Sweden, and New Zealand, where cash is fast becoming a niche payment method rather than the norm. In short, the cashless boom is here, and by the numbers it’s only getting bigger each year.
It also helps that the pandemic gave contactless payments a huge push. During COVID-19, handling physical cash felt risky to some, and both businesses and customers were keen to avoid too much contact. Tap-and-go was the hero of social distancing. Habits formed then have stuck; once people got used to the ease of tapping, many never went back to cash.
Technology itself has also improved. Smartphones are nearly ubiquitous and super easy to use. Setting up Apple Pay or Google Pay is often as simple as snapping a photo of your bank card. Banks and tech companies heavily promoted these options too, so awareness is high.
If you’re reading this on a smartphone or tablet, there’s a good chance you’ve at least tried a digital payment, even if you’re over 60. And if you haven’t, you probably know someone who has. The result is a kind of snowball effect: the more people go cashless, the more businesses cater to cashless payments – which in turn encourages even more people to tap instead of hand over notes.
So here we are, with Australians enthusiastically adopting new payment tech. Anna Bligh from the ABA says it comes down to our “overwhelming appetite for speed and convenience” in banking. We like things quick and easy, and digital delivers on that. Paying with cash, by comparison, can feel like a hassle – a sentiment that might have been unthinkable a generation ago, but is increasingly common now.
Yet, amid all this celebration of convenience and high-tech finance, there’s a catch. For every Aussie who loves the tap-and-go life, there’s another who’s thinking: Hang on, what if I still like cash? Let’s look at what’s happening to cash and why some Australians – particularly older folks – are reluctant to part with their coins and notes.
The Reserve Bank of Australia (RBA) found that even from 2019 to 2022, the proportion of in-person payments made in cash roughly halved, from 32% to 16%. We’ve become a nation of tappers and swipers.
The declining use of cash is reflected in the infrastructure too. Bank branches are closing and ATMs are disappearing as demand drops. Since 2017, more than a third of bank branches have shut down nationwide. In just one recent 12-month span (2022–23), 424 branches closed their doors, including many in regional town.
Meanwhile, the number of ATMs across the country has been cut in half over five years – falling from about 13,800 machines in 2017 to under 6,000 by 2022. That trend continues to 2025. If you’ve struggled to find an ATM lately or noticed your local bank has vanished, you’re not imagining it. One of the “Big Four” banks, Commonwealth Bank, revealed it shut more than a third of its branches and removed over 2,000 ATMs in the past five years alone.
Even major retailers are pulling back on cash services: supermarket giant Woolworths recently cut the maximum cash withdrawal at its checkouts from $500 down to $200, citing the fact that most customers simply aren’t asking for cash out anymore.
All of this might sound like we’re sprinting towards a cashless society where coins and notes go the way of the dodo. But hold on – cash isn’t dead yet. It’s dwindling, for sure, but it’s not gone. Billions of dollars in cash transactions still happen each year in Australia, and plenty of people still rely on it day to day.
The RBA’s surveys show that about 25% of Australians would be seriously inconvenienced if cash became hard to access or use. Many keep cash as a backup even if they mainly use cards. And crucially, certain groups use cash much more than others, including some of our older Australians.
Despite the overall decline, roughly one in five people over the age of 65 still use cash for the majority of their purchases. In fact, around 18% of seniors were classified as “high cash users” (meaning cash is their dominant way to pay) in an RBA study. For these folks, the cashless revolution can feel less like cool progress and more like an unsettling loss of something familiar and reliable.
As one retiree quipped at a community meeting, “I know how to fold a $50 note in my wallet. My phone? I’m always worried I’ll press the wrong thing and poof, my money’s gone!” It’s a sentiment many of us can empathise with – after all, cash is tangible and simple; digital money is abstract and, to some, a bit intimidating.
Source: 9News Australia / Youtube.
There’s also the issue of what happens when technology fails. Power blackout? Mobile network down? Tap-and-go won’t work, but cash still will. This isn’t hypothetical – think of natural disasters. When bushfires or floods strike and electricity or internet is cut off, cash can suddenly become the only way to buy essentials.
The National Seniors Australia advocacy group pointed out that during recent floods, communities had to revert to cash-only transactions for food and supplies – a powerful reminder of why having cash in circulation remains important. Even day-to-day, if your banking app goes offline or the EFTPOS machine at the shop is down, it’s those gold coins in your purse that save the day.
All of these factors mean that, even as Australia enthusiastically rides the cashless wave, cash retains a vital role as a safety net and a preferred option for some. But the trajectory is clear: we are using cash less each year, and the momentum seems irreversible. This mixed reality – cash rapidly declining, yet still crucial for a minority – sets the stage for some generational friction and debate. And no group feels that more acutely than older Australians, many of whom are watching these changes with equal parts fascination and fear.
1. Tech confidence & trust: Not every senior is tech-savvy or even has the necessary devices. Chris Grice, chief of National Seniors Australia, notes that online banking “might not be as convenient or even possible for many older Australians”. Some never got on the smartphone bandwagon, or if they did, they use it mainly for calls and texts. The idea of navigating payment apps, or trusting that a virtual card will work, can be daunting. There’s also a fear of scams – something that unfortunately targets a lot of seniors. “They’re afraid of online and credit card scams; cash is what they know,” Grice explains. Indeed, with news of scammers and hackers constantly in the headlines, it’s no wonder that handing over physical cash feels, to some, like a safer bet than sending money into the digital ether.
2. Comfort and habit: Many older Australians have been using cash their whole lives. It’s familiar. It’s tangible. There’s a certain comfort in hearing the coins clink and knowing exactly how much you have in your purse. Budgeting with cash can feel simpler – you literally see the money leaving your hand, which can make spending more mindful. (There’s some truth to this: studies suggest people often spend less when using cash, because parting with real money “hurts” more than swiping a card.) In a cost-of-living crunch, sticking to cash can help avoid overspending or racking up credit card debt. Seniors on fixed incomes often rely on such tried-and-true budgeting methods. The move towards intangible digital money, where you don’t physically see your balance shrinking, can be unnerving for those who manage money the old-school way.
3. Accessibility & inclusion: Perhaps the biggest issue is the fear of being left behind or shut out. If society goes fully cashless, what happens to someone who can’t use the new technology? National Seniors Australia has been loud and clear on this: “The move towards a ‘cashless society’ is disproportionately impacting seniors who struggle with technology and online banking,” the organisation warns. They talk about digital exclusion – a very real risk that a portion of the population could find it harder to do basic things like buy groceries or pay bills, simply because they don’t have the means or ability to transact digitally. This concern isn’t just theoretical. We’ve already seen instances where older folks face awkward situations due to the cashless shift.
Consider the example of Bob Katter, a 78-year-old Queensland MP (Member of Parliament). Earlier this year, Katter went to buy lunch at the Parliament House cafe with a $50 note, only to be told the cafe had gone cashless and wouldn’t accept his money.
The image of the white-haired MP waving his rejected $50 bill made headlines and instantly reignited debate about the cashless push. “If you have a cashless society, the banks control your life… you’re not able to buy a loaf of bread without permission from the banks,” an irate Katter later proclaimed, calling the no-cash policy “infinitely worse” for those who depend on physical money.
He even pressured the parliamentary Speaker to reverse the cafe’s cashless rule – and they did, quickly. Katter’s protest resonated with a lot of seniors and others who feel strongly about preserving the option to use cash. It highlighted a key point: for some people, being told “card only” isn’t just a minor inconvenience – it feels like a denial of their preferred, or in some cases only, way to pay.
National Seniors Australia echoes this, noting that cash is legal tender and many believe it should be universally accepted. (For the record, businesses can refuse cash if they clearly alert customers – Australian law doesn’t force a shop to take notes and coins. Still, that legal nuance offers little comfort to someone who just wants to buy lunch with perfectly good money and is turned away.)
There are also practical hurdles that hit seniors harder. System outages are one. “Doing any business online can come with a range of problems and risks, from inability to transact during system outages to data breaches,” Mr. Grice points out. We’ve all seen bank networks go down or websites crash. If you’re not comfortable navigating these issues – say, switching to a backup card or using a smartphone hotspot – you could be stranded.
Another issue is poor internet access in some areas. Many rural or remote Australians, including older residents, have spotty broadband or mobile coverage. If you live in a place with dodgy reception, relying on a phone for payments isn’t so simple. Cash doesn’t have connectivity issues; digital wallets do.
And let’s not forget, some seniors have disabilities or conditions that make tech usage challenging – from eyesight problems that make reading app screens difficult, to shaky hands that can’t easily tap tiny buttons. These may sound like small issues, but they can add up to major frustration for an older person trying to adapt to a cashless world.
Because of all this, groups like National Seniors are campaigning hard to “Keep Cash” accessible and accepted. They argue that going fully cashless too quickly could “greatly inconvenience and cause hardship” to many seniors.
Their wish list? They want cash to remain an important and supported part of the economy, no sneaky surcharges for cash payments, and clear signs at shops that do refuse cash so people know before they queue up. Essentially, don’t abandon the people who still need physical currency.
The banks and government regulators are well aware of these concerns – and they’re trying to strike a balance. On one side, there’s no denying the efficiency and popularity of digital payments. On the other, there’s a duty to ensure no Australian is left behind as technology marches on. So what’s being done?
Bank initiatives: The major banks often point out that they’re still maintaining thousands of branches and ATMs across the country, even as usage declines. Anna Bligh of the ABA has stressed that banks continue to support customers who prefer face-to-face service, with over 3,300 physical branches and 3,400 Bank@Post outlets still available nationwide.
“As we accelerate into the future, Australian banks are ensuring customers who rely on more traditional ways of banking are not left behind,” Bligh said. The industry line is that digital is an option, not an edict – if you want to see a teller or use cash, you still can. In fact, Bligh noted that Australia’s banks maintain a denser branch network than many other comparable countries (an interesting claim, considering the closures – it suggests that even after trimming, our cities and towns have more bank branches per capita than, say, other highly urbanised nations).
That said, some moves by banks have spooked customers. For example, Macquarie Bank, a mid-sized Australian bank, announced it will go completely cashless at its branches by November 2024 – meaning no cash deposits or withdrawals at all. Customers will have to use ATMs of other banks, or Australia Post, for any physical transactions. This decision, a first for an Australian bank of its size, rang alarm bells for many. If one bank can do it, will others follow?
Macquarie itself noted that fewer than 1 in 10 of its customers were using branch cash services, which is why it made the change. Still, advocacy groups see it as a warning sign. “While cutting out cash can increase safety and convenience, fears remain that vulnerable people, such as older Australians or those with disabilities, will be disproportionately affected,” Aged Care Insite reported in response to Macquarie’s move.
For now, the big four banks (CBA, NAB, Westpac, ANZ) continue to handle cash, though all are scaling back in varying degrees. It’s a delicate dance: banks need to innovate and cut costs, but they risk public backlash or even losing customers if they’re seen as abandoning part of the community.
Government and regulation: The federal government has also stepped into the fray, but in a somewhat different way. They’re not so much forcing anyone to use cash or card – that’s up to consumers and businesses – but they are looking at regulating the new digital payment players. Treasurer Jim Chalmers has indicated the government plans to bring big tech payment services (like Apple Pay, Google Pay, etc.) under the same kind of regulations that govern banks and traditional payment systems.
The logic is that as these mobile wallets become central to our economy (processing that $160 billion a year and rising), they should play by Australian rules on consumer protection, data security, and competition. The ABA itself has called for oversight of mobile wallet providers, arguing it’s only fair to level the playing field. In February, Anna Bligh noted that if mobile wallets are dominating payments, global tech companies shouldn’t get a free pass – they need to be accountable just like any other financial service.
Beyond regulation, government agencies and community organisations have launched programs to boost digital literacy among seniors. A good example is the federal “Be Connected” program, which offers free training and resources to help over-50s build confidence with computers and the internet. Around the country, libraries, seniors’ groups, and even some banks run workshops on online banking, how to set up a smartphone, and staying safe from scams.
According to YourLifeChoices (a digital publication for older Australians), many banks also have helplines and in-branch support specifically to help older Australians get comfortable with digital banking If you walk into certain bank branches, you might find staff whose job is to show customers how to use the banking app or ATM – essentially tech tutors for beginners. These efforts may not grab headlines, but they’re part of the quiet push to ensure that seniors who want to learn new technology have the opportunity to do so.
It’s worth noting, too, that the Reserve Bank of Australia has been managing the transition on another front: cheques. Once upon a time, many seniors paid bills by writing cheques. But now, even cheques are on the chopping block. The RBA has signalled that “the days are numbered” for cheque books in Australian.
Banks have stopped issuing new cheque accounts, and some won’t even automatically send you a new cheque book when you run out of pages. It’s likely that in a few years, cheques will be completely phased out. This is another example of an older payment method being retired – and another adjustment for those who still use it. The silver lining is that phasing out cheques has been gradual, and alternatives (like direct bank transfers or BPAY) are available, though again they require some comfort with digital banking.
So, on the whole, the message from banks and government is: “We’re going digital, but we’re trying not to leave anyone behind.” Whether they’re succeeding is a matter of debate.
Advocacy groups applaud steps like more training and maintaining bank@Post services at post offices, but they also say more could be done – like mandating that essential services (think utilities, government agencies, etc.) must accept cash, so those who don’t/can’t go digital aren’t shut out of basic necessities. It’s a tricky issue, and finding the right balance will likely be an ongoing conversation.
Source: Yahoo Australia / Youtube.
For many consumers, especially younger generations, a fully cashless society sounds convenient: no more jingling coins, no more ATMs, everything neat and tidy on your phone. Businesses often like the idea too: digital payments are faster and remove the hassle (and risk) of handling cash, counting tills, or dealing with robberies.
The government and tax authorities, incidentally, don’t mind a shift away from cash either, since digital transactions leave a trace (making it harder to dodge taxes or engage in the “cash-in-hand” shadow economy).
But there’s a flip side. Going completely cashless raises issues of privacy, security, and resilience. With every transaction digital, there’s a record of everything you buy – some people find that unnerving, a potential invasion of privacy.
There’s also the risk of cyber attacks or technical failures grinding commerce to a halt. Cash doesn’t get hacked, and it works when the power’s out. Moreover, as we’ve discussed, a cashless society could marginalise those who, for whatever reason, can’t join the digital bandwagon.
Most likely, we’re headed toward an 80/20 scenario – where the majority of transactions are digital, but cash remains in circulation as a backup and as a preference for a minority. Indeed, even as ATM withdrawals drop, there’s still roughly $100 billion in Australian notes circulating out there in the economy (either in people’s wallets or tucked under mattresses).
That suggests many people, including seniors, still like to keep some cash on hand “just in case.” Cash might become more of a niche – used at farmer’s markets, local footy club canteens, or by grandpa giving the grandkids birthday money – but not entirely gone.
It’s also possible we’ll see innovations that blend the old and the new. For instance, some fintech apps allow you to load cash into a digital wallet at a post office or convenience store, effectively digitizing your cash for you. And who knows, maybe one day someone will invent an easy gadget that lets technophobic folks use digital currency as simply as they used cash (that’s a challenge for the tech whizzes out there!).
For now, cash and cashless exist side by side. You can tap your phone to pay for a bus ride in Sydney, but you’ll still find charity sausage sizzles that accept only coins. You can pay your electricity bill online, but if you really want to, you can take cash to the post office and pay it over the counter. The system, at least currently, gives Australians a choice.
Older Australians, in particular, will hope that choice remains. It’s telling that National Seniors’ campaign isn’t “Stop the Cashless Society” but “Keep Cash”. They’re not anti-technology; they just want to ensure that those who need or prefer cash can continue to use it without penalty. As one senior advocate put it in a radio interview, “We’re not asking to turn back time. We’re asking not to be left behind by time.” That feels like a fair request.
Australia’s cashless journey is certainly exciting – even liberating – for many. But it’s also a journey we need to travel thoughtfully, making sure to bring everyone along. After all, the true measure of progress isn’t just how advanced your technology is, but how inclusive it is.
So, as we hurtle towards this brave new cashless world, it’s worth each of us (young or old) pausing to ask: what do we gain, and what might we lose, as cash fades away?
Now over to you. Are you personally embracing the cashless trend with open arms, or do you still breathe a sigh of relief when you have a bit of cash in your wallet for backup? Is Australia ready to ditch cash completely, or do you think we’ll always need a little “real money” in our pockets?
Read more: ‘It’s already here’: Expert’s warning as Australia edges closer to a cashless future
In fact, Aussies made a staggering $160 billion worth of payments through mobile wallets last year. That’s not a typo – $160 billion in tap-and-go transactions on phones and watches, as we increasingly embrace the convenience of cashless technology.
But amid this digital payments boom, a big question looms: what does it all mean for older Australians who grew up in a world of paper notes and face-to-face banking?
In this editorial, we’ll explore Australia’s rapid shift towards cashless payments – the eye-popping stats, the reasons it’s happening, and the mixed feelings it’s stirring, especially among seniors.
We’ll look at why so many people are ditching cash, how fast ATMs and bank branches are vanishing, and what’s being done to ensure nobody (including our less tech-savvy elders) gets left behind. So grab a cuppa, settle in, and let’s dive into the great Aussie cashless boom – an astounding trend that’s changing how we all pay, whether we’re ready or not.
The Rise of Cashless Payments: $160 Billion and Counting
It’s official: Australia is hurtling toward a cashless economy. The latest figures from the Australian Banking Association (ABA) are truly mind-blowing. Over the past year, Australians made more than four billion payments using mobile wallets – apps like Apple Pay or Google Wallet on your phone or smartwatch – totaling about $160 billion in value.
Image credit: Seniors Discount Club.
To put that in perspective, tapping your phone is now 11 times more common than withdrawing cash from an ATM. There were only 353 million ATM withdrawals in the same period, worth around $106 billion. For the first time ever, digital wallet payments have overtaken ATM cash withdrawals in total value in Australia.
Think about that: the quick tap of a phone or watch has eclipsed the once-ubiquitous trip to the ATM. The value of mobile wallet transactions has grown 23-fold since 2019, rising 28% in the last year alone. It’s a seismic shift in how we handle money. Just a few years ago, mobile payments were a novelty; now they’re mainstream.
ABA chief executive Anna Bligh sums it up as “a massive transformation in how people bank in this country,” noting that “making payments with your phone is now the norm for millions of customers”.
Importantly, this isn’t just about tech-savvy teens buying smoothies with their smartphones – nearly everyone is getting on board. According to the ABA, a whopping 99.3% of customer-bank interactions now happen via digital channels. That figure includes everything from internet banking logins to tapping your debit card at the checkout.
Essentially, almost all of our dealings with banks (whether checking balances, paying bills, or transferring money) are now done online or on a device.
Meanwhile, the old-fashioned ways are fading fast: in-person bank branch interactions have plunged by 51% since 2019. Fewer people are walking into branches, and cash withdrawals keep declining year after year (down about 9% annually since 2019, according to the ABA).
These trends paint a clear picture – Australia is embracing digital payments at breakneck speed. From big cities to country towns, tapping a card or phone to pay has become second nature.
We’re even ahead of some other countries: our cashless uptake is on par with places like the UK, Sweden, and New Zealand, where cash is fast becoming a niche payment method rather than the norm. In short, the cashless boom is here, and by the numbers it’s only getting bigger each year.
Image credit: Seniors Discount Club.
Why Aussies Are Flocking to Digital Wallets
What’s driving this rush towards cashless technology? Simply put, it’s easy, fast, and often safer. Millions of Australians have discovered the perks of paying with a tap, and it’s hard to argue with the selling points:- Convenience: Forgot your wallet at home? No worries – as long as you’ve got your phone (and let’s be honest, most of us are practically glued to them), you can still pay for your coffee, groceries, or a round at the pub. Digital wallets mean you’re far less likely to be caught short without your money. It’s the modern equivalent of tucking a $50 note into your phone case, without the note.
- Speed: Tap-and-go payments are lightning fast. No more waiting for change or fiddling with coins while a queue forms behind you. A quick tap and you’re done – which makes checkout lines move quicker and life a little easier. Many Aussies first experienced this with payWave or PayPass cards; now it’s even faster with a phone or smartwatch that’s always on hand.
- Security: Surprising as it may sound, paying with phones can be more secure than carrying cash or even a card. Digital wallet apps use encryption and tokenisation (fancy terms meaning your card number is masked with a random code) to protect your details. Plus, if you lose your phone, you can lock it or wipe it remotely – you certainly can’t do that with a lost wad of cash. There’s also the benefit of biometric ID (like fingerprint or face recognition) so only you can authorise a payment.
- All-in-one organisation: Many apps let you store more than just your credit card. Loyalty cards, public transport passes, event tickets, even your driver’s licence can sometimes be kept on your phone now. That means less rummaging through a fat wallet for the right card. Everything lives in one place – a digital wallet, literally.
It also helps that the pandemic gave contactless payments a huge push. During COVID-19, handling physical cash felt risky to some, and both businesses and customers were keen to avoid too much contact. Tap-and-go was the hero of social distancing. Habits formed then have stuck; once people got used to the ease of tapping, many never went back to cash.
Technology itself has also improved. Smartphones are nearly ubiquitous and super easy to use. Setting up Apple Pay or Google Pay is often as simple as snapping a photo of your bank card. Banks and tech companies heavily promoted these options too, so awareness is high.
If you’re reading this on a smartphone or tablet, there’s a good chance you’ve at least tried a digital payment, even if you’re over 60. And if you haven’t, you probably know someone who has. The result is a kind of snowball effect: the more people go cashless, the more businesses cater to cashless payments – which in turn encourages even more people to tap instead of hand over notes.
So here we are, with Australians enthusiastically adopting new payment tech. Anna Bligh from the ABA says it comes down to our “overwhelming appetite for speed and convenience” in banking. We like things quick and easy, and digital delivers on that. Paying with cash, by comparison, can feel like a hassle – a sentiment that might have been unthinkable a generation ago, but is increasingly common now.
Image credit: Seniors Discount Club.
Yet, amid all this celebration of convenience and high-tech finance, there’s a catch. For every Aussie who loves the tap-and-go life, there’s another who’s thinking: Hang on, what if I still like cash? Let’s look at what’s happening to cash and why some Australians – particularly older folks – are reluctant to part with their coins and notes.
Is Cash Really on the Way Out?
Walk down any busy street, and it might seem like hardly anyone uses cash anymore. Many cafes and shops have signs saying “Card Only” or “No Cash Accepted,” a trend that’s been growing in recent years. Cash usage in Australia has indeed plummeted – by the end of 2022, cash made up only about 13% of all consumer transactions, down from around 70% back in 2007. That’s an astonishing change in a relatively short time.The Reserve Bank of Australia (RBA) found that even from 2019 to 2022, the proportion of in-person payments made in cash roughly halved, from 32% to 16%. We’ve become a nation of tappers and swipers.
The declining use of cash is reflected in the infrastructure too. Bank branches are closing and ATMs are disappearing as demand drops. Since 2017, more than a third of bank branches have shut down nationwide. In just one recent 12-month span (2022–23), 424 branches closed their doors, including many in regional town.
Meanwhile, the number of ATMs across the country has been cut in half over five years – falling from about 13,800 machines in 2017 to under 6,000 by 2022. That trend continues to 2025. If you’ve struggled to find an ATM lately or noticed your local bank has vanished, you’re not imagining it. One of the “Big Four” banks, Commonwealth Bank, revealed it shut more than a third of its branches and removed over 2,000 ATMs in the past five years alone.
Even major retailers are pulling back on cash services: supermarket giant Woolworths recently cut the maximum cash withdrawal at its checkouts from $500 down to $200, citing the fact that most customers simply aren’t asking for cash out anymore.
All of this might sound like we’re sprinting towards a cashless society where coins and notes go the way of the dodo. But hold on – cash isn’t dead yet. It’s dwindling, for sure, but it’s not gone. Billions of dollars in cash transactions still happen each year in Australia, and plenty of people still rely on it day to day.
The RBA’s surveys show that about 25% of Australians would be seriously inconvenienced if cash became hard to access or use. Many keep cash as a backup even if they mainly use cards. And crucially, certain groups use cash much more than others, including some of our older Australians.
Despite the overall decline, roughly one in five people over the age of 65 still use cash for the majority of their purchases. In fact, around 18% of seniors were classified as “high cash users” (meaning cash is their dominant way to pay) in an RBA study. For these folks, the cashless revolution can feel less like cool progress and more like an unsettling loss of something familiar and reliable.
As one retiree quipped at a community meeting, “I know how to fold a $50 note in my wallet. My phone? I’m always worried I’ll press the wrong thing and poof, my money’s gone!” It’s a sentiment many of us can empathise with – after all, cash is tangible and simple; digital money is abstract and, to some, a bit intimidating.
Source: 9News Australia / Youtube.
There’s also the issue of what happens when technology fails. Power blackout? Mobile network down? Tap-and-go won’t work, but cash still will. This isn’t hypothetical – think of natural disasters. When bushfires or floods strike and electricity or internet is cut off, cash can suddenly become the only way to buy essentials.
The National Seniors Australia advocacy group pointed out that during recent floods, communities had to revert to cash-only transactions for food and supplies – a powerful reminder of why having cash in circulation remains important. Even day-to-day, if your banking app goes offline or the EFTPOS machine at the shop is down, it’s those gold coins in your purse that save the day.
All of these factors mean that, even as Australia enthusiastically rides the cashless wave, cash retains a vital role as a safety net and a preferred option for some. But the trajectory is clear: we are using cash less each year, and the momentum seems irreversible. This mixed reality – cash rapidly declining, yet still crucial for a minority – sets the stage for some generational friction and debate. And no group feels that more acutely than older Australians, many of whom are watching these changes with equal parts fascination and fear.
Why Some Seniors Aren’t Ready to Give Up Cash
For older Australians, the cashless trend can be a double-edged sword. On one hand, many seniors have happily adopted digital banking and enjoy the convenience of tapping a card instead of counting out notes. On the other, a significant number of older people are uncomfortable with the digital-only world, and they’re speaking up about it. There are a few big reasons behind their hesitation:1. Tech confidence & trust: Not every senior is tech-savvy or even has the necessary devices. Chris Grice, chief of National Seniors Australia, notes that online banking “might not be as convenient or even possible for many older Australians”. Some never got on the smartphone bandwagon, or if they did, they use it mainly for calls and texts. The idea of navigating payment apps, or trusting that a virtual card will work, can be daunting. There’s also a fear of scams – something that unfortunately targets a lot of seniors. “They’re afraid of online and credit card scams; cash is what they know,” Grice explains. Indeed, with news of scammers and hackers constantly in the headlines, it’s no wonder that handing over physical cash feels, to some, like a safer bet than sending money into the digital ether.
2. Comfort and habit: Many older Australians have been using cash their whole lives. It’s familiar. It’s tangible. There’s a certain comfort in hearing the coins clink and knowing exactly how much you have in your purse. Budgeting with cash can feel simpler – you literally see the money leaving your hand, which can make spending more mindful. (There’s some truth to this: studies suggest people often spend less when using cash, because parting with real money “hurts” more than swiping a card.) In a cost-of-living crunch, sticking to cash can help avoid overspending or racking up credit card debt. Seniors on fixed incomes often rely on such tried-and-true budgeting methods. The move towards intangible digital money, where you don’t physically see your balance shrinking, can be unnerving for those who manage money the old-school way.
3. Accessibility & inclusion: Perhaps the biggest issue is the fear of being left behind or shut out. If society goes fully cashless, what happens to someone who can’t use the new technology? National Seniors Australia has been loud and clear on this: “The move towards a ‘cashless society’ is disproportionately impacting seniors who struggle with technology and online banking,” the organisation warns. They talk about digital exclusion – a very real risk that a portion of the population could find it harder to do basic things like buy groceries or pay bills, simply because they don’t have the means or ability to transact digitally. This concern isn’t just theoretical. We’ve already seen instances where older folks face awkward situations due to the cashless shift.
Consider the example of Bob Katter, a 78-year-old Queensland MP (Member of Parliament). Earlier this year, Katter went to buy lunch at the Parliament House cafe with a $50 note, only to be told the cafe had gone cashless and wouldn’t accept his money.
The image of the white-haired MP waving his rejected $50 bill made headlines and instantly reignited debate about the cashless push. “If you have a cashless society, the banks control your life… you’re not able to buy a loaf of bread without permission from the banks,” an irate Katter later proclaimed, calling the no-cash policy “infinitely worse” for those who depend on physical money.
He even pressured the parliamentary Speaker to reverse the cafe’s cashless rule – and they did, quickly. Katter’s protest resonated with a lot of seniors and others who feel strongly about preserving the option to use cash. It highlighted a key point: for some people, being told “card only” isn’t just a minor inconvenience – it feels like a denial of their preferred, or in some cases only, way to pay.
National Seniors Australia echoes this, noting that cash is legal tender and many believe it should be universally accepted. (For the record, businesses can refuse cash if they clearly alert customers – Australian law doesn’t force a shop to take notes and coins. Still, that legal nuance offers little comfort to someone who just wants to buy lunch with perfectly good money and is turned away.)
There are also practical hurdles that hit seniors harder. System outages are one. “Doing any business online can come with a range of problems and risks, from inability to transact during system outages to data breaches,” Mr. Grice points out. We’ve all seen bank networks go down or websites crash. If you’re not comfortable navigating these issues – say, switching to a backup card or using a smartphone hotspot – you could be stranded.
Another issue is poor internet access in some areas. Many rural or remote Australians, including older residents, have spotty broadband or mobile coverage. If you live in a place with dodgy reception, relying on a phone for payments isn’t so simple. Cash doesn’t have connectivity issues; digital wallets do.
And let’s not forget, some seniors have disabilities or conditions that make tech usage challenging – from eyesight problems that make reading app screens difficult, to shaky hands that can’t easily tap tiny buttons. These may sound like small issues, but they can add up to major frustration for an older person trying to adapt to a cashless world.
Because of all this, groups like National Seniors are campaigning hard to “Keep Cash” accessible and accepted. They argue that going fully cashless too quickly could “greatly inconvenience and cause hardship” to many seniors.
Their wish list? They want cash to remain an important and supported part of the economy, no sneaky surcharges for cash payments, and clear signs at shops that do refuse cash so people know before they queue up. Essentially, don’t abandon the people who still need physical currency.
Banks and Government: Balancing Innovation with Inclusion
The banks and government regulators are well aware of these concerns – and they’re trying to strike a balance. On one side, there’s no denying the efficiency and popularity of digital payments. On the other, there’s a duty to ensure no Australian is left behind as technology marches on. So what’s being done?
Bank initiatives: The major banks often point out that they’re still maintaining thousands of branches and ATMs across the country, even as usage declines. Anna Bligh of the ABA has stressed that banks continue to support customers who prefer face-to-face service, with over 3,300 physical branches and 3,400 Bank@Post outlets still available nationwide.
“As we accelerate into the future, Australian banks are ensuring customers who rely on more traditional ways of banking are not left behind,” Bligh said. The industry line is that digital is an option, not an edict – if you want to see a teller or use cash, you still can. In fact, Bligh noted that Australia’s banks maintain a denser branch network than many other comparable countries (an interesting claim, considering the closures – it suggests that even after trimming, our cities and towns have more bank branches per capita than, say, other highly urbanised nations).
That said, some moves by banks have spooked customers. For example, Macquarie Bank, a mid-sized Australian bank, announced it will go completely cashless at its branches by November 2024 – meaning no cash deposits or withdrawals at all. Customers will have to use ATMs of other banks, or Australia Post, for any physical transactions. This decision, a first for an Australian bank of its size, rang alarm bells for many. If one bank can do it, will others follow?
Macquarie itself noted that fewer than 1 in 10 of its customers were using branch cash services, which is why it made the change. Still, advocacy groups see it as a warning sign. “While cutting out cash can increase safety and convenience, fears remain that vulnerable people, such as older Australians or those with disabilities, will be disproportionately affected,” Aged Care Insite reported in response to Macquarie’s move.
For now, the big four banks (CBA, NAB, Westpac, ANZ) continue to handle cash, though all are scaling back in varying degrees. It’s a delicate dance: banks need to innovate and cut costs, but they risk public backlash or even losing customers if they’re seen as abandoning part of the community.
Government and regulation: The federal government has also stepped into the fray, but in a somewhat different way. They’re not so much forcing anyone to use cash or card – that’s up to consumers and businesses – but they are looking at regulating the new digital payment players. Treasurer Jim Chalmers has indicated the government plans to bring big tech payment services (like Apple Pay, Google Pay, etc.) under the same kind of regulations that govern banks and traditional payment systems.
The logic is that as these mobile wallets become central to our economy (processing that $160 billion a year and rising), they should play by Australian rules on consumer protection, data security, and competition. The ABA itself has called for oversight of mobile wallet providers, arguing it’s only fair to level the playing field. In February, Anna Bligh noted that if mobile wallets are dominating payments, global tech companies shouldn’t get a free pass – they need to be accountable just like any other financial service.
Beyond regulation, government agencies and community organisations have launched programs to boost digital literacy among seniors. A good example is the federal “Be Connected” program, which offers free training and resources to help over-50s build confidence with computers and the internet. Around the country, libraries, seniors’ groups, and even some banks run workshops on online banking, how to set up a smartphone, and staying safe from scams.
According to YourLifeChoices (a digital publication for older Australians), many banks also have helplines and in-branch support specifically to help older Australians get comfortable with digital banking If you walk into certain bank branches, you might find staff whose job is to show customers how to use the banking app or ATM – essentially tech tutors for beginners. These efforts may not grab headlines, but they’re part of the quiet push to ensure that seniors who want to learn new technology have the opportunity to do so.
It’s worth noting, too, that the Reserve Bank of Australia has been managing the transition on another front: cheques. Once upon a time, many seniors paid bills by writing cheques. But now, even cheques are on the chopping block. The RBA has signalled that “the days are numbered” for cheque books in Australian.
Banks have stopped issuing new cheque accounts, and some won’t even automatically send you a new cheque book when you run out of pages. It’s likely that in a few years, cheques will be completely phased out. This is another example of an older payment method being retired – and another adjustment for those who still use it. The silver lining is that phasing out cheques has been gradual, and alternatives (like direct bank transfers or BPAY) are available, though again they require some comfort with digital banking.
So, on the whole, the message from banks and government is: “We’re going digital, but we’re trying not to leave anyone behind.” Whether they’re succeeding is a matter of debate.
Advocacy groups applaud steps like more training and maintaining bank@Post services at post offices, but they also say more could be done – like mandating that essential services (think utilities, government agencies, etc.) must accept cash, so those who don’t/can’t go digital aren’t shut out of basic necessities. It’s a tricky issue, and finding the right balance will likely be an ongoing conversation.
The Road Ahead: A Cashless Future or a Mix of Both?
All this leads to a million-dollar (or rather, a 160-billion-dollar) question: Are we headed for a completely cashless future, and is that a good thing? The jury is still out. If current trends continue, it’s conceivable that in a decade or two Australia could function mostly without cash. Countries like Sweden offer a glimpse – Swedes use cash so little now that many banks there no longer handle cash at all, and even charities take digital payments. Australia isn’t at that extreme yet, but we’re not far behind the world leaders in going cash-free.Source: Yahoo Australia / Youtube.
For many consumers, especially younger generations, a fully cashless society sounds convenient: no more jingling coins, no more ATMs, everything neat and tidy on your phone. Businesses often like the idea too: digital payments are faster and remove the hassle (and risk) of handling cash, counting tills, or dealing with robberies.
The government and tax authorities, incidentally, don’t mind a shift away from cash either, since digital transactions leave a trace (making it harder to dodge taxes or engage in the “cash-in-hand” shadow economy).
But there’s a flip side. Going completely cashless raises issues of privacy, security, and resilience. With every transaction digital, there’s a record of everything you buy – some people find that unnerving, a potential invasion of privacy.
There’s also the risk of cyber attacks or technical failures grinding commerce to a halt. Cash doesn’t get hacked, and it works when the power’s out. Moreover, as we’ve discussed, a cashless society could marginalise those who, for whatever reason, can’t join the digital bandwagon.
Most likely, we’re headed toward an 80/20 scenario – where the majority of transactions are digital, but cash remains in circulation as a backup and as a preference for a minority. Indeed, even as ATM withdrawals drop, there’s still roughly $100 billion in Australian notes circulating out there in the economy (either in people’s wallets or tucked under mattresses).
That suggests many people, including seniors, still like to keep some cash on hand “just in case.” Cash might become more of a niche – used at farmer’s markets, local footy club canteens, or by grandpa giving the grandkids birthday money – but not entirely gone.
It’s also possible we’ll see innovations that blend the old and the new. For instance, some fintech apps allow you to load cash into a digital wallet at a post office or convenience store, effectively digitizing your cash for you. And who knows, maybe one day someone will invent an easy gadget that lets technophobic folks use digital currency as simply as they used cash (that’s a challenge for the tech whizzes out there!).
For now, cash and cashless exist side by side. You can tap your phone to pay for a bus ride in Sydney, but you’ll still find charity sausage sizzles that accept only coins. You can pay your electricity bill online, but if you really want to, you can take cash to the post office and pay it over the counter. The system, at least currently, gives Australians a choice.
Older Australians, in particular, will hope that choice remains. It’s telling that National Seniors’ campaign isn’t “Stop the Cashless Society” but “Keep Cash”. They’re not anti-technology; they just want to ensure that those who need or prefer cash can continue to use it without penalty. As one senior advocate put it in a radio interview, “We’re not asking to turn back time. We’re asking not to be left behind by time.” That feels like a fair request.
Australia’s cashless journey is certainly exciting – even liberating – for many. But it’s also a journey we need to travel thoughtfully, making sure to bring everyone along. After all, the true measure of progress isn’t just how advanced your technology is, but how inclusive it is.
So, as we hurtle towards this brave new cashless world, it’s worth each of us (young or old) pausing to ask: what do we gain, and what might we lose, as cash fades away?
Now over to you. Are you personally embracing the cashless trend with open arms, or do you still breathe a sigh of relief when you have a bit of cash in your wallet for backup? Is Australia ready to ditch cash completely, or do you think we’ll always need a little “real money” in our pockets?
Read more: ‘It’s already here’: Expert’s warning as Australia edges closer to a cashless future
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