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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I am 82 years old, and would not appreciate a cashless Society, because technology for me is overpowering. I am sure that more people who would agree with me. so please consider the older generation . I do not suffer from dementia or Alzheimer however, not being in the workforce for our 15 years makes a pretty hard to follow technology specially where you see every day on the news about scammers and how people lose millions every year.
 
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For the most part, like most people, I rarely have a need to use cash today, however, some of the uses for cash I would greatly miss if they no longer existed. These include supporting buskers, or helping out a homeless person in need; people holding garage sales, or a casual stall at a community market selling second-hand goods or local produce; church donations at a Sunday service; a child's pocket money, their piggybank, or the tooth under the pillow, etc. It is these and other little simplicities and rituals of life that I would greatly miss.
A cashless society, to me, is a heartless society whereby every last cent that we earn, or handle is equally subject to the handling and scrutiny of the corporate world, their respective agendas and shareholder profits... every last cent, every day of our lives from the moment we are born! I really don't like that thought!
 
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".
Are you sure this is not a scam, sounds a bit fishy to me.
Not too often banks are offering to reduce your fees.
 
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I am one of the tecnology users who pay all my bills online. I refuse to let the Bank charge me for the pleasure of paying by card. My pension goes into the Bank, I have to pay the Bank to get it out!?! I withdraw by efpos at Woolworths (free) then that is what I use for shopping and entertainment for the week. It is far too easy to overspend if you use tap and go. you don't even have bits of paper to see what you have spent.
 
It will be a catastrophe if this happens. It is a ploy to totally control (I could be wrong with this thought but I doubt it). Also think of where we are going with electricity, if the grid goes down, which is already happening, and shops have to close their doors as there is no way of paying, unless they go back to the day where it was done manually, I doubt that also, no use running to an atm as they won’t exist or won’t be working as they run on electricity, so your without food, petrol, medicine etc. just can’t see how it will be a good outcome for anyone.
NAILED IT...!!!
 
Do they not realise that people control technology? And, have they not noticed all the scams and the amount of money that innocent people have lost because up to now?
This NEVER happened, to this extent, before.
Scamming will be as easy as LITERALLY,
'A TOUCH OF THE BUTTON' (makes me think of the Atom Bomb) and increase to incomprehensible heights!
We can kiss our money goodbye and they can kiss my @$$...! 💋
 
Not to state the obvious, the 'Covid' epidemic really pushed the cashless transactions for health reasons, but we have taken our eye off the ball and continued cashless.
It concerns me that EVERYTHING we purchase is recorded and it will eventually become an issue with certain departments re your spending habits. There will not be a choice of being able to purchase those items either for a surprise/gift for others so it doesn't appear on the next statement and takes the fun out of it, or items deemed not required as staples of life.
People should make cash withdrawals to preserve the 'choice' factor of life.
In addition, I find having cash in my wallet really makes me think before purchasing, whereas if I only have the card option I tend to overspend.
 
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How are the children of today going to learn how to manage money? The physicality of it makes it make sense or cents. They can see how it disappears if you spend it. Nothing nicer than cash in your wallet.
 
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