Cash was expected to quietly disappear from everyday life in Australia. For years, digital payments — from tap-and-go cards to mobile wallets — steadily replaced notes and coins across shops, transport, and dining. But new data suggests that trend has stalled, and in some areas, reversed.
A recent survey by the Reserve Bank of Australia (RBA) shows that cash is still playing a meaningful role in how Australians pay, with usage no longer declining at the pace seen over the past two decades. Instead, physical money appears to be stabilising, and in certain cases, regaining relevance.
According to the RBA’s latest findings, around 15% of all payments in 2025 were made using cash. While this remains far below levels seen in the early 2000s — when cash accounted for the majority of transactions — it marks a notable shift after years of continuous decline. Cash now represents about 8% of the total value of payments, reflecting its continued use mainly for smaller purchases.
Cash is especially common for low-value transactions. About one in four payments under $10 are still made using notes and coins, highlighting its role in everyday spending. Even as digital methods dominate larger transactions, cash continues to serve practical purposes at the lower end of the market.
Who is still using cash — and why
The survey found that about half of Australians use cash in a typical week, suggesting it remains part of regular financial behaviour. Around 7% of the population rely heavily on it, using cash for more than 80% of their transactions. These users are more likely to be older, on lower incomes, and living in regional or remote areas.
Cash usage is also higher in communities where access to digital services is less reliable. In some remote regions and First Nations communities, infrastructure challenges make electronic payments less dependable, keeping cash relevant as a trusted alternative.
At the same time, there are indications that not all cash activity is fully visible in official data. There are roughly $50 billion worth of $100 notes in circulation — nearly 20 per person — despite most Australians rarely encountering them. This has led to ongoing suspicion that a portion of high-denomination cash is being hoarded or used in informal or illegal transactions.
Still, for most Australians, the reasons for using cash are far more practical. Around one-third of people say they would face inconvenience or hardship if they could not use cash. Common reasons include dealing with businesses that only accept cash, managing personal budgets more easily, giving money to family and friends, and concerns around privacy and security.
Why cash is not disappearing
One major factor supporting cash use is reliability. While digital payments are convenient, they depend on systems that can fail. Power outages, network issues, or technical disruptions can leave people unable to pay. As a result, three-quarters of Australians still carry some cash, with the median amount sitting at around $65. Many see it as a backup for emergencies rather than a primary payment method.
Policy decisions are also shaping the future of cash. Since January 2026, the federal government has required many essential businesses, including supermarkets and petrol stations, to continue accepting cash. This move is designed to ensure that people who rely on physical money are not excluded from basic services.
Another change is on the horizon. From October 2026, surcharges on card payments are expected to be banned. Until then, some consumers continue to prefer cash to avoid additional fees when paying electronically.
Despite steady demand, accessing cash has become more difficult. The number of bank branches has declined, and ATM networks have shrunk from more than 30,000 machines at their peak to fewer than 25,000 today. This reduction has made it harder for some Australians, particularly in regional areas, to withdraw physical money when they need it.
The broader payments landscape shows how dominant digital methods have become. Earlier RBA data indicated that around half of all payments are made using debit cards, with credit cards accounting for about a quarter. Other methods such as BPAY and PayPal represent only a small share.
Even so, Australia’s experience is not unique. International data from the Bank for International Settlements shows that cash in circulation in Australia is equivalent to about 4% of GDP, similar to countries like Canada and the UK. In contrast, it is much lower in Sweden, where cash usage is minimal, and significantly higher in economies like Japan and Hong Kong.
What stands out is that the decline of cash appears to be slowing in several countries, not just Australia. Rather than disappearing entirely, physical money is settling into a smaller but still important role within modern payment systems.
The latest RBA insights suggest that cash continues to support financial inclusion and system resilience. While many Australians have embraced digital payments, a significant portion of the population still depends on having the option to use cash when needed.
For a detailed breakdown of the data and trends, readers can refer to the Reserve Bank of Australia’s official report.
As the payments landscape evolves, Australia appears to be moving toward a hybrid system — one where digital convenience dominates, but cash remains an essential fallback. For more updates on economic trends and consumer finance, visit our finance section.
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