Australians Still Using Cash for Now

Why It Matters

The resurgence underscores cash’s role in financial inclusion and as a fallback during digital outages, prompting policymakers to safeguard its availability for consumers and merchants alike.

Key Takeaways

• Cash payments rose to 15.4% of transactions in 2025.
• Half of Australians use cash weekly, especially older adults.
• Small‑value purchases under $6.6 USD increasingly paid with cash.
• 2026 cash mandate forces supermarkets, utilities, petrol stations to accept cash.

Pulse Analysis

Australia’s cash landscape is undergoing a modest revival, contradicting narratives of an imminent cash‑free economy. The Reserve Bank’s latest payments survey reveals that cash now represents 15.4% of transaction counts, the first uptick since the survey began in 2007. This growth is driven largely by older demographics and by the convenience of settling low‑value purchases—about one‑quarter of payments under $6.6 USD are still made with notes and coins. The data also highlight cash’s cultural foothold in leisure activities, where it accounts for roughly a third of cash‑based spending, reinforcing its status as a trusted medium for everyday life.

The resurgence has practical implications for retailers and payment processors. While contactless cards dominate transport and larger purchases, cash remains a preferred option for small‑ticket items, prompting merchants to maintain cash registers despite rising handling costs. The Australian government’s upcoming cash‑mandate, effective January 2026, will legally obligate essential service providers—supermarkets, utilities, and petrol stations—to accept cash, ensuring that consumers who rely on physical currency are not excluded. This policy move reflects broader concerns about digital payment resilience and the need to protect vulnerable groups from potential service disruptions.

From a macro‑economic perspective, the continued circulation of approximately $66 billion USD in Australian banknotes signals that cash will remain a significant component of the monetary ecosystem for the foreseeable future. However, the logistics of distributing and securing cash across a vast geography are becoming increasingly costly, prompting discussions about the efficiency of the current supply chain. Stakeholders—from banks to fintech firms—must balance the demand for cash with innovations that enhance security and reduce operational burdens, while regulators monitor the evolving payment mix to safeguard both inclusion and system stability.