Just when you thought cash was heading for the history books, Australians are reaching for their wallets more than ever. Recent data reveals a remarkable turnaround that's catching banks and payment experts off guard.
The latest figures from the Reserve Bank show ATM withdrawals jumped 4.5 per cent in the year to May 2024, while withdrawal numbers increased by 767,600 between July and August 2024 alone. This represents the first sustained increase in cash usage since before the COVID-19 pandemic.
CBA's chairman backs cash for the long haul
At Commonwealth Bank's annual general meeting in Brisbane, chairman Paul O'Malley faced a pointed question about whether Australia's largest bank would abandon cash for a fully digital future. His response was unequivocal.
'I think cash is still absolutely critical,' O'Malley told concerned stakeholders. 'We've demonstrated by our actions over the last few months working with the industry to make sure that cash supply and cash availability continues.'
He emphasised that cash will be around for a 'very' long time, with CBA investing a 'lot' of money to ensure continued availability despite digital trends.
'I think cash is still absolutely critical'
O'Malley's stance appears increasingly prescient as new data suggests the 'cashless society' predictions were premature.
The system failures that changed everything
The Optus outage in November 2023 and the CrowdStrike outage of July 2024, plus many other smaller system problems have dented community confidence in the reliability of cashless payment systems. These high-profile failures reminded Australians why keeping some cash handy makes sense.
Concerns about payment system reliability, privacy and high card surcharges are all fuelling a trend back towards carrying and using cash in 2024.
Many seniors remember when having backup plans was simply common sense. Now, younger generations are learning the same lesson the hard way.
The surprising reality of cash access
Despite widespread concerns about disappearing cash services, 95 per cent of Australians lived within 4.0 km of an identified cash withdrawal point as of June 2024. These include ATMs, bank branches, Bank@Post outlets, and large retailers.
For cash deposits, the access remains reasonable too, with most Australians living within 5.7 km of a cash deposit point.
Cash access in Australia (June 2024)
95 per cent of Australians live within 4km of cash withdrawal points
Average distance to deposit services: 5.7km
Bank@Post maintains strong network coverage nationwide
ATM withdrawals up 4.5 per cent in 2024
Who's still using cash and why
The data reveals something politicians and bank executives might find surprising: two big surveys in 2024 have confirmed that paying with cash is highly valued by around 40 per cent of Australians.
The cash-in-transit industry is not currently sustainable but 40 per cent of Australians are basically wedded to the use of cash. This group likely includes many seniors who value the privacy, reliability, and budgeting benefits that cash provides.
While the Reserve Bank's Consumer Payments Survey reported that physical cash's share of consumer payments fell to 13 per cent in 2022, this figure may not tell the complete story. Existing published data underestimates the role of cash in Australia's economy.
The branch closure reality
The banking landscape continues evolving, with 230 branches closing over the year to June 2024. However, while most bank branch closures were in major cities, over one-quarter were in regional and remote areas.
CBA actually performed better than competitors in this area, closing just 32 branches in 2023-24 compared to Westpac's 66 closures.
When another stakeholder named Justin raised concerns about bank staff encouraging online banking, CBA CEO Matt Comyn assured that the bank remained committed to investing in its branch network, even with reduced foot traffic.
What's driving the cash comeback
The resurgence isn't just about system failures. Many Australians are rediscovering cash's advantages:
- Privacy protection: Cash transactions leave no digital footprint
- Budget control: Physical money makes spending more tangible
- Surcharge avoidance: No merchant fees on cash payments
- Emergency preparedness: Always works when systems fail
Assistant Treasurer Stephen Jones noted that while electronic transactions saved money for banks, these savings were not being passed on to customers.
What this means for you
If you're among the 40 per cent who prefer cash, you're not alone and you're not being left behind. The data suggests your preference is shared by millions of other Australians who value cash's unique benefits.
Key points for cash users
- Cash usage is actually increasing in 2024, not declining
- 95 per cent of Australians live within 4km of cash access points
- Major banks like CBA are committing to long-term cash support
- System outages have proven cash remains essential backup
- Your preference for cash is shared by 40 per cent of Australians
For those worried about accessing cash services, the RBA's Online Banknote Survey suggests that withdrawing cash from ATMs is the most preferred method of accessing cash, followed by cash-out services and bank branches.
The message from CBA's chairman is clear: despite digital advances, cash isn't disappearing anytime soon. If anything, recent trends suggest it's staging an unexpected comeback.
What's your experience with cash versus digital payments? Have recent system outages changed how you think about keeping cash on hand? Share your thoughts in the comments below.
Primary Source
https://au.finance.yahoo.com/news/c...prediction-absolutely-critical-184522445.html
Cash usage is trending up in Australia in 2024
Cited text: The value of monthly ATM cash withdrawals is up 4.5 per cent in the year to May 2024, reports the RBA.
Excerpt: ATM withdrawals jumped 4.5 per cent in the year to May 2024
https://www.cashwelcome.org/blog-posts/cash-usage-is-trending-up-in-australia-in-2024
Cash withdrawals rebound—National Seniors Australia
Cited text: The number of withdrawals from the machines increased by 767,600 (2.7 per cent) between July and August, according to Reserve Bank of Australia (RBA) data.
Excerpt: withdrawal numbers increased by 767,600 between July and August 2024 alone
https://nationalseniors.com.au/news/latest-news/cash-withdrawals-rebound
Cash usage is trending up in Australia in 2024
Cited text: Increasing number of outages and privacy concerns, plus high card surcharges are fuelling a trend towards people carrying physical cash ‘just in case....
Excerpt: The Optus outage in November 2023 and the CrowdStrike outage of July 2024, plus many other smaller system problems have dented community confidence in the reliability of cashless payment systems
https://www.cashwelcome.org/blog-posts/cash-usage-is-trending-up-in-australia-in-2024
Cash usage is trending up in Australia in 2024
Cited text: Concerns about payment system reliability, privacy and high card surcharges are all fuelling a trend back towards carrying and using cash in 2024.
Excerpt: Concerns about payment system reliability, privacy and high card surcharges are all fuelling a trend back towards carrying and using cash in 2024
https://www.cashwelcome.org/blog-posts/cash-usage-is-trending-up-in-australia-in-2024
Access to Cash in Australia | Bulletin—January 2025 | RBA
Cited text: As of June 2024, 95 per cent of Australians lived within 4.0 km of an identified cash withdrawal point (ATMs, ADI branches, Bank@Post outlets, and lar...
Excerpt: 95 per cent of Australians lived within 4.0 km of an identified cash withdrawal point as of June 2024
https://www.rba.gov.au/publications/bulletin/2025/jan/access-to-cash-in-australia.html
Cash usage is trending up in Australia in 2024
Cited text: Two big surveys in 2024 have confirmed that paying with cash is highly valued by around 40 per cent of Australians.
Excerpt: two big surveys in 2024 have confirmed that paying with cash is highly valued by around 40 per cent of Australians
https://www.cashwelcome.org/blog-posts/cash-usage-is-trending-up-in-australia-in-2024
Cash usage is trending up in Australia in 2024
Cited text: The cash-in-transit industry is not currently sustainable but 40 per cent of Australians are basically wedded to the use of cash.
Excerpt: The cash-in-transit industry is not currently sustainable but 40 per cent of Australians are basically wedded to the use of cash
https://www.cashwelcome.org/blog-posts/cash-usage-is-trending-up-in-australia-in-2024
Cash usage is trending up in Australia in 2024
Cited text: The Reserve Bank of Australia’s triennial Consumer Payments Survey (CPS) reported that physical cash’s share of consumer payments has fallen dramatica...
Excerpt: the Reserve Bank's Consumer Payments Survey reported that physical cash's share of consumer payments fell to 13 per cent in 2022
https://www.cashwelcome.org/blog-posts/cash-usage-is-trending-up-in-australia-in-2024
Cash usage is trending up in Australia in 2024
Cited text: Existing published data underestimates the role of cash in Australia’s economy.
Excerpt: Existing published data underestimates the role of cash in Australia's economy
https://www.cashwelcome.org/blog-posts/cash-usage-is-trending-up-in-australia-in-2024
Access to Cash in Australia | Bulletin—January 2025 | RBA
Cited text: The broad pace of branch closures has continued, with 230 branches closing over the year to June 2024.
Excerpt: 230 branches closing over the year to June 2024
https://www.rba.gov.au/publications/bulletin/2025/jan/access-to-cash-in-australia.html
Access to Cash in Australia | Bulletin—January 2025 | RBA
Cited text: While most ADI branch closures were in major cities, over one-quarter were in regional and remote areas of Australia.
Excerpt: while most bank branch closures were in major cities, over one-quarter were in regional and remote areas
https://www.rba.gov.au/publications/bulletin/2025/jan/access-to-cash-in-australia.html
Cash withdrawals rebound—National Seniors Australia
Cited text: Assistant Treasurer Stephen Jones said the use of electronic transactions saved money for banks, because it cost them to move cash around, but these s...
Excerpt: Assistant Treasurer Stephen Jones noted that while electronic transactions saved money for banks, these savings were not being passed on to customers
https://nationalseniors.com.au/news/latest-news/cash-withdrawals-rebound
Access to Cash in Australia | Bulletin—January 2025 | RBA
Cited text: The RBAs Online Banknote Survey suggests that withdrawing cash from ATMs is the most preferred method of accessing cash, followed by cash-out service...
Excerpt: the RBA's Online Banknote Survey suggests that withdrawing cash from ATMs is the most preferred method of accessing cash, followed by cash-out services and bank branches
https://www.rba.gov.au/publications/bulletin/2025/jan/access-to-cash-in-australia.html
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