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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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.
Oooooo....the world is out to get you, I'm scared.

Coles keep records of purpose for returns/warranty most likely. Not everything is food in a supermarket. What nefarious reason do you think they have to keep receipts? Has value of each item, a total and if you pay by cash there is totally ZERO information linking the transaction to a person. If paid by card, that's a;; it says, the card information is not kept.

Spotlight, yes it would have come up that cookies are used on their site, so they can keep track of what you've looked at before, cookies help you with your return searches, FFS, there's nothing sinister going on. Your email was "inundated", oh no, have you recovered from that epic tragedy? Every email like those has a place down the bottom, asks if you want to unsubscribe to that site, click it and they stop coming, so simple. But again, it's advertising, it's trying to help you with items you may want. No different to decades worth of brochures being put into your letterbox, you read them and/or throw them away. AGAIN, there is nothing sinister about this.

Four types of data -

Scanning data - Yeah, prices of items, big deal, no connection to a person, totally irrelevant to you.
Panel data - You HAVE to sign up for this, it's like a survey of what you have bought, it does not affect you if you haven't signed up for it.
Card data - AGAIN, you sign up for that when using loyalty cards or supermarket issued cards, if you don't what to be part of ll that, do NOT get one of these cards, simple.
Social Media data - oh dear.........again, it's not personal, they are looking at trending posts, what people are talking about, NOT what Joe Blow is talking about, it's in general. If Coles sees Joe Blow make a comment that he likes Cadbury's chocolate it doesn't mean Joe Blow is being targeted, hell half the profiles on social media are not the real names, it can be anyone, anywhere in the world.

All of your "concerning information" is crap. Paranoid about nothing, most of the data is driven by consumers who have signed up for it. I go into Coles and buy something, Coles have no idea I've been in there. They know a person has been there and bought X, they do not know who that person is unless that person has signed up to be part of that data source.

You are on the internet, you worry about your personal information but you are on the internet, the internet is THE place to be worried, not your local supermarket, FFS.

No doubt you'll keep your paranoid delusions going. You know it's a worldwide problem, I've spoken to a couple of international psychologists recently, one from Germany and one from the USA, they both see mental health as a major problem that's ramped up immensely since Covid. I think you need to see one, your ability to think critically has gone, all you see is; danger everywhere, the gov is out to get you, "they" are after you, want your information, etc, etc.
 
GST helps pay for the tax cuts used to bribe us to elect a politician. A 30% income tax does not amount to a full 30% of anyone's income, and public health, education from ages 6 to 18 have to be paid for, as does Australia's military. and police forces among other vital social services.

As to the why cash is essential; bankers are bastards and politicians not much better.
 
‘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!
That''s inflation for you! When I was 14 years old 10/- (10s0d) falling out of my birthday card would buy me 4 pints of Best British Beer (or stout) at 2/6 a pint (600ml for modern 14 year olds).
 
Oooooo....the world is out to get you, I'm scared.

Coles keep records of purpose for returns/warranty most likely. Not everything is food in a supermarket. What nefarious reason do you think they have to keep receipts? Has value of each item, a total and if you pay by cash there is totally ZERO information linking the transaction to a person. If paid by card, that's a;; it says, the card information is not kept.

Spotlight, yes it would have come up that cookies are used on their site, so they can keep track of what you've looked at before, cookies help you with your return searches, FFS, there's nothing sinister going on. Your email was "inundated", oh no, have you recovered from that epic tragedy? Every email like those has a place down the bottom, asks if you want to unsubscribe to that site, click it and they stop coming, so simple. But again, it's advertising, it's trying to help you with items you may want. No different to decades worth of brochures being put into your letterbox, you read them and/or throw them away. AGAIN, there is nothing sinister about this.

Four types of data -

Scanning data - Yeah, prices of items, big deal, no connection to a person, totally irrelevant to you.
Panel data - You HAVE to sign up for this, it's like a survey of what you have bought, it does not affect you if you haven't signed up for it.
Card data - AGAIN, you sign up for that when using loyalty cards or supermarket issued cards, if you don't what to be part of ll that, do NOT get one of these cards, simple.
Social Media data - oh dear.........again, it's not personal, they are looking at trending posts, what people are talking about, NOT what Joe Blow is talking about, it's in general. If Coles sees Joe Blow make a comment that he likes Cadbury's chocolate it doesn't mean Joe Blow is being targeted, hell half the profiles on social media are not the real names, it can be anyone, anywhere in the world.

All of your "concerning information" is crap. Paranoid about nothing, most of the data is driven by consumers who have signed up for it. I go into Coles and buy something, Coles have no idea I've been in there. They know a person has been there and bought X, they do not know who that person is unless that person has signed up to be part of that data source.

You are on the internet, you worry about your personal information but you are on the internet, the internet is THE place to be worried, not your local supermarket, FFS.

No doubt you'll keep your paranoid delusions going. You know it's a worldwide problem, I've spoken to a couple of international psychologists recently, one from Germany and one from the USA, they both see mental health as a major problem that's ramped up immensely since Covid. I think you need to see one, your ability to think critically has gone, all you see is; danger everywhere, the gov is out to get you, "they" are after you, want your information, etc, etc.
For your information, Mister "Know All Nothing"....

1. Scanning data - I returned a grocery item, paid by CASH, unfit for human consumption, some days after purchase, WITHOUT a docket. The register used, the mode of payment, the date and approximate time was taken and records for THAT transaction were retrieved within one minute. The store was Woolworths. If the transaction was performed by the magical piece of plastic, the financial institution and card number would have been readily available. I haven't had a credit card for over 12 years nor a mortgage for the same length of time.

2. Panel data - I have not and never will sign up for such rubbish.

3. Card data - Again, I have never signed up and never will sign up for such rubbish.

4. Social media data - I deleted my last social media account over a year ago. You may see SDC as social media. It is NOT! It is merely a forum for discussion of topics of which may be of interest to its members.

It is quite evident that I have no reason to be paranoid because of this so called COVID-19 induced mental illness. I consider psychologists to be nothing but the fabricators of opinion, which is never wrong but subject to much misinformation due to their own prejudices and beliefs. Don't worry - I have dealt with these pseudo doctors on a personal and professional basis, many times. No better than psychologists, who incidentally, are REAL doctors.

Evidently, assumption is your own worst enemy!
 
Having worked in the Banking Sector for 25 years of my working life, I can state with authority that the banks and businesses would love to see the end of cash, because "IT SAVES THEM MONEY" in cutting their handling and insurance expenses. But when the Banks' wonderful cashless systems fail, as they do, we, the consumer are stuffed without cash. Keep fighting for cash. There is still a place for it and without it, we are just playing into the hands of the banks' and increasing their profits whilst they are shedding their responsibilities to their customers.
 
If the population is forced into a completely cashless society, this means that our right to choose how we handle our own money has been taken away………..A decision will be made on our behalf, but not for our good…. I think that eventually there will be only one ‘Bank’ for everyone and fees and charges will be across the board, what would be the need for different banks…….. and that’s only one area of control!
 
If the population is forced into a completely cashless society, this means that our right to choose how we handle our own money has been taken away………..A decision will be made on our behalf, but not for our good…. I think that eventually there will be only one ‘Bank’ for everyone and fees and charges will be across the board, what would be the need for different banks…….. and that’s only one area of control!
It will probably be a Chinese financial institution, the way things are going.

Bank of China, Industrial and Commercial Bank of China, China Construction Bank, Bank of Communications, Agricultural Bank of China and China Merchants Bank already have numerous branches in Australia.

My bet is on the Chinese government owned Bank of China....if there is any cash left to withdraw!!
 
I would bet there are many ‘welfare’ recipients who - as has already been said on this forum - keep cash at home to make their bank accounts look small and thereby get more in welfare payments. It is happening all the time and there’s no denying it.

Just before you jump down my throat - my husband and I saved all our working lives, were frugal without being miserly, led and still do lead a simple life - and do not get a cent from the welfare system even at almost 80 and just over 80, because all our money is in full view of the government. We’ve invested some money in shares and use the dividend income to further support our simple life and have also invested a small amount in short term deposit. So don’t jump down my throat, please.
 
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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.
Rubbish! Who is the other that the bank charges a fee. My card is a Visa debit card linked to my savings account. When I flash that card to pay a bill, the money comes out of my account more or less straight away. I hear people putting forward the argument that what happens if the system goes down. When it does go down it takes all the ATMs with it. Why do people in rural areas specially need cash? I would have thought with banks out there closing in droves, that ATMs would be important. Yes, you can get cash out of an ATM, but to do so, you are using the same card as required by a cashless system, and can be tracked from it's use. Also someone suggested holding a referendum without thinking it through. Imagine a referendum with the question regarding keeping cash. With currently only 13% of face to face transactions, the government would spin the argument of the cost of producing bank notes and coins and the referendum would likely fail. that would then give the government the mandate to withdraw all cash.

I hope for the sake of their health, that after handling filthy notes and coins, people remember to sanitize their hands. You never know where that money has been before it got to you.
 
It will probably be a Chinese financial institution, the way things are going.

Bank of China, Industrial and Commercial Bank of China, China Construction Bank, Bank of Communications, Agricultural Bank of China and China Merchants Bank already have numerous branches in Australia.

My bet is on the Chinese government owned Bank of China....if there is any cash left to withdraw!!
What about the Hong Kong and Shanghai Banking Corporation
 
Living in country SE Qld I understand community resistance to changing to a permanent cashless system. Vendors may also be part of this resistance due to mistrust of our key government departments (including for tax collection) limiting trading freedoms. In terms of personal and business trading, I much prefer cashless as it is more convenient and easier to track income & expenditure - and stick to a budget. It's much easier to blow a stash of cash out of the water.
 
It will probably be a Chinese financial institution, the way things are going.

Bank of China, Industrial and Commercial Bank of China, China Construction Bank, Bank of Communications, Agricultural Bank of China and China Merchants Bank already have numerous branches in Australia.

My bet is on the Chinese government owned Bank of China....if there is any cash left to withdraw!!
It’s not a nice thought going forward is it…. :( ….Sometimes I wonder if they are putting plans in place now, just waiting until us elders shove off and then there will be a lot less people to oppose them …………Am I a conspiracy theorist do you think :LOL:
 

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