Is your wallet about to become obsolete? Discover when Australia plans to go completely cashless

As the digital age accelerates, Australia is on the brink of a significant financial transformation.

Experts predict that by the end of this decade, the nation will become 'functionally cashless', a shift that is stirring concern among Australians.



With the closure of hundreds of bank branches and ATMs, a recent study revealed that 71 per cent of Aussies are apprehensive about transitioning to a cashless society, with 41 per cent expressing extreme concern.

The research by payments technology company Waave highlighted that Baby Boomers, regional Australians, and lower-income households are the most anxious about this change.


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A study showed that 41 per cent of Australians expressed extreme concern about moving towards a cashless society. Image source: Freepik



The fear is not unfounded, as two-thirds of Australians worry that going cashless could marginalise certain groups and worsen economic inequality.


Additionally, 58 per cent are concerned about the potential rise in banking and card fees.



Waave's Co-Founder and CEO, Ben Zyl, acknowledged that Australians are among the world's leading adopters of digital payments. However, he also recognised the legitimate fears surrounding consumer security and control within the current digital payments system.

Data theft, password complications, and exorbitant card fees and surcharges are at the forefront of these concerns.

‘There’s a lot of fear, particularly among those who can’t access alternatives or aren’t confident using technology,’ Mr Zyl stated.

The sentiment of 'cash nostalgia' is also prevalent, with nearly half of Aussies admitting they would miss the tactile experience of handling physical money.

He added: ‘Whether you’re younger or older, the psychology around cash is unique. We like the feel of it, the sense of control, and we tend to spend less when we pay in cash.’



Despite these concerns, the Reserve Bank's data indicated a decline in cash usage. Consumer cash payments plummeted from 70 per cent in 2007 to a mere 13 per cent in 2022.

In contrast, Australians made 30.2 million ATM withdrawals in January, the highest in a year, withdrawing over $9 billion, the largest amount since mid-2020.

Dr Angel Zhong, an Associate Professor of Finance at the Royal Melbourne Institute of Technology (RMIT), expects Australia to be functionally cashless by 2030.

This doesn't mean cash will vanish or lose its value; rather, consumer preference is increasingly leaning towards digital payments.

The transition is already in motion, reflecting a broader trend in consumer behaviour.



Professor Zhong is not alone in this sentiment. Finance Expert Sarah Wells also predicted that Australia will become a 'technically cashless' society in the near future.

‘All the changes we have seen have put us in a situation where we no longer need cash,’ she said.

‘There hasn’t been a requirement for it to come back out into circulation. Because people aren’t popping down and taking money out of the ATM or going to banks anymore,’ Ms Wells added.

The closure of 424 bank branches and the removal of 718 ATMs in the 12 months leading up to June 2023 further underscore this shift.

Despite this, the Big Four banks—Commonwealth, Westpac, Australian and New Zealand Banking Group (ANZ), and National Australia Bank (NAB)—have stated they will not go completely cashless.

As we navigate this transition, it's essential to consider the implications for all Australians, especially those who may not be as tech-savvy or who rely on cash for various reasons.

The move towards a cashless society promises convenience and efficiency but demands a thoughtful approach to ensure inclusivity and security.
Key Takeaways
  • Most Australians are concerned about the shift towards a cashless society, with research showing that 71 per cent of them are worried about the implications.
  • Concerns include the exclusion of certain demographics, exacerbation of economic inequality, and increased banking and card fees.
  • Waave, a payments technology company, highlighted that Baby Boomers, regional Australians, and lower-income households are the most anxious about this change.
  • Data from the Reserve Bank of Australia indicates a decline in cash use for consumer payments, dropping from 70 per cent in 2007 to 13 per cent in 2022, signalling a trend towards digital payment options.
How do you feel about the move towards a cashless society? Are you ready for the shift, or do you have reservations? Share your experiences and opinions in the comments below.
 
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As I have said before. Until the Government says we are now a cashless society these banks and money handlers should and will deal in cash. What happens to the local weekend markets and other businesses that deal in cash payments? Pensioners and other low-income people who rely on cash every day are done with by the banks. The government must step in and decide what will happen about Australia going cashless.
 
As I have said before. Until the Government says we are now a cashless society these banks and money handlers should and will deal in cash. What happens to the local weekend markets and other businesses that deal in cash payments? Pensioners and other low-income people who rely on cash every day are done with by the banks. The government must step in and decide what will happen about Australia going cashless.
Obviously you haven’t dealt with the retailer “House” homewares shop.
they refuse to accept cash therefore they refuse to accept my purchase.
There are many many more retailers and restaurants not accepting cash!
 
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These figures are fudged . Banks & the government are making it harder for people to get their own money .
the push for cash is on with huge amounts of Australians withdrawing cash weekly & doing only cash transactions
2 nd April will see the banks / government sent a very strong message from Australians
 
Your article claims 30.2 ATM withdrawals in January. What was being withdrawn if not cash. There is something wrong with this report.
 
Wake up Australia..if we go cashless we lose control over our hard earned money.
WE ALL MUST INSIST ON HAVING CASH IN OUR POCKETS.
 
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Lately I have been using cash a lot more than I used to and find it convenient. I also use cards when necessary. I find with cash, for small purchases, I don’t have to hoard all my receipts in case I need to check something later with statements. If we go cashless what will happen with things like raffles where we use cash? I also attend a monthly writers’ meeting where, as well as an annual fee which we pay by direct bank transfer, we pay $5 for each meeting and have an annual Xmas raffle. Will we have to get an eftpos machine? It’s ridiculous! As has been stated here card fees and surcharges also add to the cost of using cards. It’s a dreadful concept to go cash free.
 
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If you want control of the population then digital currency is it, they will know how much, where and when you spend your money and decide if you should be spending your money on Alcohol for one example 🤔 this is really open to corruption and digital theft, we all should be worried by that.
 
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I almost stopped using cash several years ago, but a few transactions will always need to be in cash. Garage sales are one example. Pocket money for young children another.
Also there is the problem of technical failure with electronic payments as I am sure we have all experienced from time to time. When that happens cash is king.
 
I spent an inordinate amount of time yesterday tryung to speak to a human at St George Bank re an email they'd sent me asking me to call them on 133330 re switching 2 of my accounts to low-fee accounts.
I could not get the "chat line" to help (it didn't understand my question). I could not get a human being to speak to and finally all that happened when I rang the number was, it ended the call.
These banks haven't a clue how to manage queries that sit "outside the box" yet they were the ones asking me to contact them!

I now need to ho to a branch to see a human being who, hopefully, can "think outside the square".
Good luck with that
 
What is the matter with people? Stand up and be counted as cashless indicates more fees with less control. Think about charities, markets, garage sales etc, it will all suffer. Most elderly people have limited or no knowledge of electronic banking and with the scammers getting smarter it is going to be very difficult to maintain honesty throughout all systems. Let CASH continue to stay in our society.
My elderly Mum who is 100 yrs old prefers to use cash. She gets me to go to the ATM or the post office and withdraw her money that she needs for either shopping, prescriptions, the lawnmower man and her hairdresser or just to have some cash on hand for emergencies. She doesn't know about electronic transactions, if she needs to use Eftpos she gets me to do it for her. She can use her card but she prefers cash as does another family member. He uses cash more than his card for purchases as he wants to know how much he spends unlike the card transactions where you really end up spending more money at the shops. I to be honest prefer cash I have been stung too many times with using my card at certain shops.
Also as was mentioned about charities etc who use cash they might become a memory. Also when the power goes out so does the system. CASH should be left alone and still be used.
 
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I have taken to with-drawing cash at my BOQ bank to pay for my fortnightly shop at my Aldi store. That way I always have money in my purse for the unexpected purchase.
My elderly Mum is the same she prefers to have cash in case of emergencies etc. She only uses her card if the shopping is a little more than what she expected which usually happens when we go to Aldi or any other shop.
 
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The year 2030 is not a date. So called financial experts "predict" and "expect" Australia to become cashless by this "date".

I see the "date" is set in concrete....

....made of Aeroplane Jelly.
If we all refuse to go completely cashless this will not happen. It can't happen if we make this clear and insist we have to use cash.
 
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Are we the only country going cashless? All about control ! Stand up and insist on paying cash. 🐑🐑
 
The Banks want it as it will improve their 'bottom line', no staff to pay, none of the following ie: Super contributions, no holiday payments, no sick leave, maternity leave, and so on, one rise in card usage hits all the cards across the lot, this is then passed down the line to the 'cash cow' people, you and I. It may be convenient but, are you going to be able to afford all these extra fees...on top of the cost of living. As to speaking to someone directly in a lot of businesses, forget it. I just had a vivid lesson in AI robots answering calls. I knew it was a 'robot' the moment my call was answered. I told them my 'inquiry', it did not answer, instead I was directed to another voice, then another after six voices and no resolution I hung up the phone. The company has sent me two more txt messages asking me to call them....not happening.... I had to go the City last week so I went to the main city office. Sat in the reception area for 35 minutes, then spoke to 2 different humans, could not get a direct answer to what they wanted and the second person I spoke to told me that I could do this on the phone from home....He was shocked when I told him I tried and couldn't...he was further shocked when I closed my account and moved it to another financial institution. Have had three
direct phone calls since asking me why and would I consider coming back.... A firm 'NO' was the reply, very happy with my move however, still getting calls to come back.... it seems to me that there are two words that should not be put in a sentence together....CUSTOMER SERVICE... The Banks are saying that numbers are dropping in relation to customers going into banks or using ATM's. That is what their statistics are showing... funny that, they are creating the statistics by closing branches and removing ATM's. If the items are no longer available the numbers will drop..... clever, not shocking, what is shocking is that the Royal Commission into the banking industry and after exposing all their under-handed dealings and frauds failed to charge anyone with any number of criminal offenses that were found. Out of all this, more people are loosing their jobs, unemployment numbers are rising and the Federal Gov. is still asleep at the wheel, not unusual, Banks will run this Country to suit them...
 
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I hate the thought of going cashless. It will be yet another case of big brother is watching you. You would think that with all the con artists working hard to scam our money we would be discouraged to have our private details spread around with passwords (we often can't remember). This will be yet another way of con artists getting to our money, especially the elderly. I think we need far more time to go cashless if at all. If people still want cash then perhaps we stop paying by card.
 
I had to go back to cash for a week or so recently, as my Visa Debit Card was hacked. My bank cancelled the card. They mailed me a new one, but it took a week or more to arrive. Meanwhile I had to go to the bank branch and withdraw cash to tide me over. It was quite difficult to work out how much I was going to need - and of course I couldn’t pay for anything online. Also at least one of my regular payments was blocked - embarrassing! Thank goodness the problem has now been sorted out.
 

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