A group of cash advocates has called on Australians to withdraw physical currency on Tuesday. The campaign aims to highlight the importance of keeping cash as a viable payment option.
Jason Bryce, founder of the advocacy group Cash Welcome, started the initiative during the COVID-19 pandemic. He noticed the closure of his local bank branch and three ATMs, along with a shift to cashless systems in stores.
Cash Use Declines During Pandemic
Bryce observed that card companies promoted the narrative that cash was unhygienic. Retailers temporarily stopped accepting cash, contributing to a sharp decline in its use. Bryce stated, “Card companies were talking about the dirtiness of cash, and people were saying, ‘We’ve got to go cashless.’”
Figure 1: Decline in cash use during Covid-19 Pandemic
He added, “That led to a big decline in the use of cash, and it looked like the cashless society was inevitable.” This development prompted him to launch Cash Welcome to safeguard Australians’ right to use cash.
Group Pushes Back Against Cashless Transition
Cash Welcome urges Australians to withdraw money and spend it in stores on Tuesday. “Have money in your pocket so you can pay with stuff if you need to, but [Tuesday], particularly, it’s like a vote against their cashless Australia,” Bryce said.
Cash Usage Declines Across Australia
The Reserve Bank of Australia (RBA) reported that cash made up 32 per cent of in-person transactions in 2019. That figure dropped to 16 per cent by 2022. The RBA plans to release updated figures later this year.
Worldpay, a global payments provider, predicts cash will make up only 7 per cent of in-person transactions by 2030. Currently, that figure stands at 10 per cent. The report shows Australians prefer debit or prepaid cards. Digital wallets are expected to become the top choice for transactions.
Figure 2: Fall of cash usage in Australia
ATM Closures Contribute to Reduced Access
The closure of ATMs is another contributing factor to the decrease in cash use. Bryce and other advocates argue this reduces access, especially for older Australians and regional communities.
Figure 3: Reduction in branches and ATMs between 2017 and 2023
Expert Predicts Functionally Cashless Society by 2030
Dr Angel Zhong, associate professor of finance at RMIT University, expects Australia to be a functionally cashless society by 2030. “That means the majority of payments will be in digital method. But it doesn’t mean that you can’t use cash,” she said.
She reassured Australians by adding, “So I don’t think people need to panic when it comes to the movement towards a cashless society, because we’re talking about a functionally cashless society, not a fully cashless society.”
Mandate to Support Essential Cash Payments
The federal government will introduce a mandate on 1 January 2026 requiring certain businesses to accept cash. While the full list remains unclear, a government discussion paper has outlined some potential inclusions.
The list includes supermarkets, pharmacies, dentists, GPs, hardware stores, insurers, pet stores, vets, service stations, and mechanics. Cafes, takeaways, bottle shops, and hairdressers may be exempt. Businesses that fail to comply will face penalties.
Government to Phase Out Cheques
The government will also phase out cheques. They will stop issuing them by 30 June 2028. Businesses will no longer accept them after 30 September 2029.
Cash Offers Benefits Beyond Transactions
Some Australians prefer cash due to transaction surcharges, digital security concerns, and outages. The Optus outage in 2023 disrupted payment systems, preventing Australians from making transactions.
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Zhong highlighted this issue by saying, “That incident, along with the others like the Optus incident, they highlighted some of the vulnerability of digital payments.”
Bryce added, “I couldn’t catch the train, couldn’t make a payment because I was caught without cash.” He warned against being caught without emergency funds. “And I think there’s been a big realisation in Australia that you don’t want to get caught out without a $50 note or a $20 note in your pocket, because you don’t know what’s going to happen.”
Cash Demand Rose During the Pandemic
Despite declining usage, Australians increased their demand for banknotes during the COVID-19 pandemic. The RBA reported that the value of banknotes in circulation rose by 22 per cent from March 2020 to December 2022. This increase equalled $19 billion. The RBA concluded that Australians were hoarding banknotes to store wealth and for precautionary savings.
Public Strongly Supports Cash Accessibility
According to a poll by Yahoo Finance, 88 per cent of 18,300 respondents support mandatory cash acceptance. Bryce said, “You need to be able to use cash to buy food, medicines and your essential groceries.”
He added, “Most of us think we have that right because we’ve heard the words ‘legal tender’ and it’s written on our banknotes, and many people are shocked and dismayed when they can’t use cash.”
Cash Advocacy Gains Momentum
The movement to defend physical currency continues to gain traction. Advocates hope the mass withdrawal day will show strong public support. They aim to ensure Australians can continue using notes and coins in their daily lives.
