Cash Use in Australia: What the 2025 Consumer Payments Survey Tells Us

Why It Matters

Cash remains a critical pillar for financial inclusion and emergency preparedness, and any erosion of access could disproportionately affect vulnerable groups. Policymakers must balance digital payment growth with maintaining robust cash infrastructure.

Key Takeaways

• Cash accounts for 15% of Australian payments by number in 2025
• Half of Australians use cash weekly; 1.5 million rely heavily
• One‑third would face hardship if cash access were limited
• Older and lower‑income households remain the most frequent cash users
• 78% have convenient withdrawal access; deposit convenience fell to 65%

Pulse Analysis

Australia’s cash landscape is at a crossroads, with the 2025 Consumer Payments Survey confirming that cash still handles about 15 percent of transactions by number and roughly 8 percent by value. While digital wallets and card payments continue to expand, cash retains a strong foothold among older Australians, lower‑income families and regional communities. The median cash holding of AU$65 – roughly US$43 – reflects a modest buffer that can cover an average in‑person purchase of AU$23 (about US$15), reinforcing cash’s role as a safety net during electronic outages or network failures.

The survey’s insight that one‑third of respondents would face hardship without easy cash access highlights the importance of inclusive payment policies. Recent government mandates requiring grocery stores and petrol stations to accept cash aim to protect vulnerable consumers, yet challenges persist: 78 percent report convenient withdrawal points, but only 65 percent find deposit services convenient, a decline from 2022. The reduction in bank‑branch locations, offset by a rise in independent ATMs and Bank@Post outlets, underscores a shifting infrastructure that must be monitored to avoid creating cash deserts, especially in remote and First Nations areas.

Looking ahead, the Reserve Bank’s upcoming removal of surcharge prohibitions on designated card networks could subtly shift cash’s share, particularly for low‑value transactions where surcharges currently incentivise cash use. However, the enduring preference for cash in budgeting, privacy and emergency contexts suggests that cash will remain a vital component of a resilient payments system. Stakeholders—including banks, merchants and regulators—should continue investing in accessible cash‑withdrawal and deposit points while fostering digital literacy, ensuring that the transition toward a more electronic economy does not leave behind those who depend on cash for everyday financial stability.