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.

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.

 

[LorLes]

I’ve commented before but as children, we were given pocket money and then did other jobs for extra. It taught us not only a work ethic, but the value of money, how to count and how to save. To do that, one requires cash

Then, how are the homeless going to access the internet? The elderly and infirm?

Markets, garage sales, marketplace, sausage sizzles and other fundraisers, like the fire truck at Xmas?

Let’s not forget, most businesses are now charging for transaction fees adding to the cost of living.

Add power outages, internet outages, system failures, and let’s not forget the shut down of 3G which will affect vast areas of Australia which do not and are unlikely to have 4/5G

I won’t speculate on a future where the government can stop access to your accounts, but between the government signing up to pretty much allowing the WHO to take control and the FDA changing its wording on informed consent to exclude vaccines THEY deem non harmful, one doesn’t need a crystal ball

 

[Greg350]

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.

The customer is charge a fee that gets passed onto the Bank, it is not charged twice.

 

[Greg350]

I’ve commented before but as children, we were given pocket money and then did other jobs for extra. It taught us not only a work ethic, but the value of money, how to count and how to save. To do that, one requires cash

Then, how are the homeless going to access the internet? The elderly and infirm?

Markets, garage sales, marketplace, sausage sizzles and other fundraisers, like the fire truck at Xmas?

Let’s not forget, most businesses are now charging for transaction fees adding to the cost of living.

Add power outages, internet outages, system failures, and let’s not forget the shut down of 3G which will affect vast areas of Australia which do not and are unlikely to have 4/5G

I won’t speculate on a future where the government can stop access to your accounts, but between the government signing up to pretty much allowing the WHO to take control and the FDA changing its wording on informed consent to exclude vaccines THEY deem non harmful, one doesn’t need a crystal ball

Who said cash was going? You're getting your knickers in a knot over nothing.

 

[Greentrees]

‘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!

Granny is probably a pensioner. $20.00 is a lot to her.

 

[Greg350]

Stick cashless society up your arse $50 is still $50 no matter how many times it passes through people's hands transactions have fee's and $50 bleeds out every time it's used

Not everywhere charges fees

 

[Greg350]

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 ?

Who said cash is going anywhere? There is so much rubbish on here, there is no plane to remove cash, only the thoughts of nutters and their uneducated thinking

 

[Greg350]

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

Many businesses DO absorb the charges, I never pay a fee at the supermarkets, service stations and pay with savings account and you don't pay elsewhere either.

 

[I'm Mal]

When statistics are quoted for cash withdrawals, is that only counting ATM withdrawals? I suspect that is the case. What appears to be forgotten is cash withdrawals from supermarket and hardware chain checkouts, service stations, department stores, convenience stores and clubs/pubs. I submit that there would be far more cash withdrawals from these venues than ATM sites. The reason cited for ATM closures and bank branch closures is usually decline in business and decline in interest in the services provided. That same excuse is applied to decline in accessibility to cash. The fact that there are a number of alternatives to ATMs and since the alternatives do not charge to withdraw cash, tells me why there is a decline in ATM usage, not that there is a decline in interest in the use of cash.

 

[KaraJenna]

There are some things cash where is essential .
When I ask for someone to buy for me in various stores.
When I need to pay somebody back for an unexpected purchase.
Slipping money to great grandchildren, cards they can't use just don't cover it!
Etcetera,etcetera . . .
I can, and do, still use cheques but they are being phased out.
The assumption that everyone is in the same boat as the decision makers is just plain stupid!

 

[Greg350]

When statistics are quoted for cash withdrawals, is that only counting ATM withdrawals? I suspect that is the case. What appears to be forgotten is cash withdrawals from supermarket and hardware chain checkouts, service stations, department stores, convenience stores and clubs/pubs. I submit that there would be far more cash withdrawals from these venues than ATM sites. The reason cited for ATM closures and bank branch closures is usually decline in business and decline in interest in the services provided. That same excuse is applied to decline in accessibility to cash. The fact that there are a number of alternatives to ATMs and since the alternatives do not charge to withdraw cash, tells me why there is a decline in ATM usage, not that there is a decline in interest in the use of cash.

Cash use IS declining, everywhere. Sure some people take cash at those other places but it's not massive.

Banks run branches/ATMs based on profitability, this notion that banks are creating the closures themselves is ridiculous, plenty of busy branches are still being renovated, still getting new ATMs, only non performing locations are closing.

And if you use your own bank's ATM there isn't a charge, except maybe normal account withdrawal fees if they apply to your specific account.

 

[I'm Mal]

Cash use IS declining, everywhere. Sure some people take cash at those other places but it's not massive.

Banks run branches/ATMs based on profitability, this notion that banks are creating the closures themselves is ridiculous, plenty of busy branches are still being renovated, still getting new ATMs, only non performing locations are closing.

And if you use your own bank's ATM there isn't a charge, except maybe normal account withdrawal fees if they apply to your specific account.

If you say so

 

[Greg350]

There are some things cash where is essential .
When I ask for someone to buy for me in various stores.
When I need to pay somebody back for an unexpected purchase.
Slipping money to great grandchildren, cards they can't use just don't cover it!
Etcetera,etcetera . . .
I can, and do, still use cheques but they are being phased out.
The assumption that everyone is in the same boat as the decision makers is just plain stupid!

This thinking that cash is disappearing is also stupid, it has never been mentioned by any government official. Only nutters who think the whole world is out to get them fall for all of this paranoia.

 

[Veggiepatch]

When you purchase by cash and/or credit/debit card, your transaction is recorded for some length of time. If you receive a digital receipt from Coles, the record of purchase is available for 14 MONTHS after purchase, according to their website. So what purpose does this data serve? Possibly nefarious, I would say. And what third parties have access to this information?

Take, for example, my experience. When searching the Spotlight website for block out curtains, my inbox has been inundated with Spotlight "special offers" ever since. So, an innocent internet search results in said company accessing your personal details WITHOUT your permission. I didn't make a purchase from Spotlight, cash OR card. Anyone who thinks we are immune from unsolicited incursions by organisations by using a credit or debit card had better think again.

 

[Veggiepatch]

Further investigation has exposed major retailers use four types of data from consumers, namely scanning data, panel data, card data (including loyalty program cards) and social media data.

This allows them to access personal and sensitive information such as the age of the consumer, number of people in the household and income levels. This information is procured from entities such as the International Republican Institute (IRI) and NielsenIQ - in other words, a form of Big Brother.

Read on for more disturbing information.

How Supermarkets Are Using Big Data & Predictive Analytics To Win (+ Infographic) | Expert360

The Australian grocery industry is very concentrated. This level of concentration has occurred over many years as the 2 major supermarket chains, Coles and Woolworths, have successfully grown their sales and market share. Recent industry figures from IBISWorld’s 'Supermarket and Grocery Stores...

expert360.com

 

[Viellarde]

‘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!

But think of what Grandma is giving up from her life.

 

[MaggieMay1948]

Two points:
1. Australia isn't the only country resisting a cashless society.
2. People are waking up to the cost of using cards and they are realising that if cash disappears altogether, we will be at the complete mercy of the banks and businesses. Australia is the highest fee paying country in the world and it will get worse if we are left with no alternative method of paying.

 

[Veggiepatch]

But think of what Grandma is giving up from her life.

Won't anyone think of poor Grandma?

Oh wait....I'm sitting right next to one! Oops!

 

[Luckyus]

We draw out cash every week for day to day usage, I tink it's idiocy to tap plastic for a bloody pie and coffee? Call me a dinosaur, but I'll carry on using cash as long as I'm able.

 

[Greg350]

We draw out cash every week for day to day usage, I tink it's idiocy to tap plastic for a bloody pie and coffee? Call me a dinosaur, but I'll carry on using cash as long as I'm able.

No one is trying to change you

 

[lovie dovie]

Their trying to take our freedom of choice away from us, I'm a 77ryr old pensioner I use both, cash and credit card, the banks will come out on top if this ever happens,
if I need the guy who mows my lawn, he gets cash
What will happen if you're at the cash register at the supermarket with your trolley full of food and if your card doesn't work.