Why are Australians resisting cashless future despite digital payment bloom?

In an age where digital wallets and contactless payments are becoming the norm, it's easy to assume that the traditional cash system is on its way out.

However, despite the surge in digital transactions, Australians are surprisingly resilient in holding onto their banknotes and coins.

The question is, why is there such a steadfast refusal to go completely cashless down under?


The answer lies in the regional and remote communities that form a significant part of the country's landscape.

These areas, often overlooked in the digital revolution, continuously rely on cash for day-to-day transactions.


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Cashless transition is not happening soon due to the widespread preference for cash in daily transactions. Credit: Shutterstock


Recent data from the Reserve Bank of Australia revealed that Australians made over 30 million ATM cash withdrawals in February, marking a 3.6 per cent increase compared to the same month in the previous year.

This resurgence of cash withdrawals, the highest collective sum since July 2020, suggested a backlash against the push for a cashless society.

During a segment on Sunrise, ING financial expert Matt Bowen discussed the current state of cash usage in Australia.


‘If you’re one of the few Aussies spending your $50 and $20 notes, you are in the minority. Cash has declined significantly,’ Bowen said.

‘About 70 per cent of transactions face-to-face in 2007 were using cash, it is down to around 13 per cent now. Will we see the decline of cash? I’m not sure.’

‘There is still around 25 per cent of Aussies who live in regional and remote communities still very reliant on cash for day-to-day transaction, which is unlikely to change any time soon,’ he added.

‘There is still a big portion of consumers that believe you actually spend more when you’re tapping your card.’

‘It is easier to save money and control your budget when you’re using cash, and, of course, the one thing we can’t replicate is that feeling of the $20 bill falling out of a birthday card from grandma.’

‘That’s something that can’t be replicated with a bank transfer.’


The debate between cash and digital payments has escalated in recent months, particularly with the significant turnout for Cash Out Day in April.

This event urged individuals to withdraw money from ATMs, symbolising their ongoing reliance on cash.

According to ATM provider Next Payments, cash withdrawals nationwide surged by 6.2 per cent compared to 2 April 2023.

Jason Bryce, a campaigner for the Cash Welcome, expressed concerns that Australians were ‘fettered against their will into a cashless society.’

He attributed this trend to banks' reluctance to bear associated costs despite many Australians still preferring to use cash.

‘Banks can’t create a cashless transaction system that’s 100 per cent reliable, that’s 100 per cent private and is surcharge-free and these are the things people love about cash.’ Bryce said.


In related news, Australia's move towards a cashless society sparked widespread concern among the majority.

These concerns range from worries about excluding certain demographics to issues of economic equality and the potential for increased banking and card fees. For detailed information, you can find more here.
Key Takeaways
  • Cash withdrawals in Australia have increased, with 30,859,700 ATM cash withdrawals made in February, up 3.6 per cent compared with the previous month.
  • Regional and remote Australian communities still rely on cash for day-to-day transactions, with cash unlikely to disappear any time soon.
  • A financial expert suggested that using cash can help individuals save money and control their budgets better than using cards.
  • There's a sentiment among some Australians that cash transactions offer benefits that digital ones cannot, such as reliability, privacy, and no surcharge, leading to resistance against a fully cashless society.
Do you prefer cash transactions over digital ones? Have you experienced any challenges in accessing cash in your community? Share your stories and opinions in the comments below.
 
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Cyclones , digital outages, don't worry cash. Try using a card for food, petrol etc when the system goes down.
What? The poor banks have to spend a few dollars to keep cash and the Government wants to track every dollar? Cyber criminals can't steel your "cash"" Society seems to out smart itself.
 
Simply put why should people pay a surcharge to spend their own money yes it convenient but retailers and especially banks charge you to spend your money which will be a lot more if society ends up being totally cashless the surcharge will rise and being cashless you have no choice So banks ,retailers , government want to see cashless happen to gouge the money they make from digital payments would be staggering Yes your money
 
We need both cash and card for so many reasons ! We all know the reasons so I won’t bore you the main one is Choice. Why should the people of this country be forced into accepting what the banks and government want ? What happened to referendums ? We don’t want to be told that’s how it will be with no say !!!
 
I find it infuriating that businesses pass on the cost of the surcharge to their customers. This charge is a tax deductible business expense and businesses are double dipping claiming it from BAS and charging me. I don't like paying cash because I know that quite often it's not declared and this is how businesses owners avoid paying tax. I pay my tax why shouldn't they.
 
Simply put why should people pay a surcharge to spend their own money yes it convenient but retailers and especially banks charge you to spend your money which will be a lot more if society ends up being totally cashless the surcharge will rise and being cashless you have no choice So banks ,retailers , government want to see cashless happen to gouge the money they make from digital payments would be staggering Yes your money
You don't have to pay a surcharge, use a card with savings account access, no charge.
 
I knew this would get many going. No one has said cash is going, only the paranoid who fuel this nonsense which in turn puts ideas in other's heads.
For the ones whinging about charges, this only happens at smaller business generally, Coles, Woolworths, etc do not charge. Use your savings account with your plastic card and usually there's no charge.
The main reason so many have strong feelings about this is TAX. Cash transactions can be hidden, income not taxed, GST not paid. Also welfare payment recipients, they have cash at home, can't get much interest in the bank so aren't missing out but they can get more pension, a big incentive for cash use.
Why do people accept all this, it means the honest people pay more tax to offset the lower tax cash businesses pay and the extra payments that welfare recipients get.
 
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I find it infuriating that businesses pass on the cost of the surcharge to their customers. This charge is a tax deductible business expense and businesses are double dipping claiming it from BAS and charging me. I don't like paying cash because I know that quite often it's not declared and this is how businesses owners avoid paying tax. I pay my tax why shouldn't they.
Every time you & the business flash your card the bank charges you both a fee. I would think running a business today would be a nightmare that why they are closing at a rapid rate.
 
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I don't like paying by card because lots of times you are charged extra in fees. With cash you get the money out of an ATM, then you keep a better on on your spending with no extra fees. Stay with a cash society.
 
‘It is easier to save money and control your budget when you’re using cash, and, of course, the one thing we can’t replicate is that feeling of the $20 bill falling out of a birthday card from grandma.’

Stingy grandma! $20 wouldn't buy her 14 year old grandson or granddaughter a pint of beer and a packet of Nobby's Nuts from the pub's vending machine!
 
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‘It is easier to save money and control your budget when you’re using cash, and, of course, the one thing we can’t replicate is that feeling of the $20 bill falling out of a birthday card from grandma.’

Stingy grandma! $20 would buy her 14 year old grandson or granddaughter a pint of beer and a packet of Nobby's Nuts from the pub's vending machine!
Vegie,a 14 yr old can't go to the pub for a beer. They can go to Macca's and get a burger and shake.
maybe she will up the amount at 18 . ;)
 
You don't have to pay a surcharge, use a card with savings account access, no charge.
NO CHARGE ........FOR NOW. haven't you noticed how charges increase over time, I remember when the harbour bridge toll 20cents. (to pay for the bridge) increased when the bridge was paid for,.....do you really think the banks wont charge when we dont have a choice and cash is gone ?
 
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Simply put why should people pay a surcharge to spend their own money yes it convenient but retailers and especially banks charge you to spend your money which will be a lot more if society ends up being totally cashless the surcharge will rise and being cashless you have no choice So banks ,retailers , government want to see cashless happen to gouge the money they make from digital payments would be staggering Yes your money
paying a surcharge should fall on the traders head as it saves them heaps ,like banking ,immediate credit in their accounts ,safety from being robbed ,record keeping, no more bounced cheques, etc ..all for a few cents, remember were already paying 10% get (not refundable)...30% tax 10%gst, 2-3%cc charge= 42+% of our income, sneaky no wonder people are broke.....welfare is the way to go, you will still be broke but have more life to live, same end result
 

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