Will Cash Become Obsolete in Australia?



As the world continues to embrace the digital age, how we handle money is rapidly evolving. In recent years, Australia has seen a significant shift towards cashless transactions, with the rise of mobile payment apps, contactless cards, and online shopping. The ongoing COVID-19 pandemic has further accelerated this trend as people prefer contactless options to minimise the risk of transmission.

With these changes, the question arises: will cash become obsolete in Australia? In this article, we will explore the current state of cash usage, the factors driving the move towards a cashless society, the potential consequences, and whether a cashless future is inevitable for the Land Down Under.

1. The Decline of Cash Usage in Australia

Over the last few years, cash usage in Australia has steadily declined. According to a recent Reserve Bank of Australia report, cash payments accounted for only 27% of all transactions in 2022, a substantial decrease from 2010, when cash was used for 69% of transactions. This trend will continue as more businesses and consumers embrace digital payment methods.

2. Factors Driving the Shift to a Cashless Society

Several factors contribute to the growing preference for cashless transactions in Australia:

a. Convenience

One of the main drivers is the convenience offered by digital payment methods. Mobile wallets and contactless cards allow for swift and hassle-free transactions, reducing the need to carry physical cash. Additionally, the ability to make online purchases further enhances the ease of shopping without leaving the comfort of one’s home.

b. Hygiene Concerns During the Pandemic

The COVID-19 pandemic brought hygiene concerns to the forefront, leading many Australians to adopt contactless payments to avoid physical contact with cash. Businesses and consumers alike have increasingly turned to digital payment options to reduce the risk of virus transmission.

c. Technological Advancements

Australia has witnessed significant technological advancements in the financial sector, facilitating the shift towards cashless transactions. Seamless integration of payment options in smartphones, wearables, and other devices has made digital payments more accessible and appealing.

d. Incentives from Businesses

Many businesses now incentivize customers to use digital payment methods by offering discounts, rewards, or cashback on transactions made through mobile apps or cards. This further encourages the adoption of cashless payments.

3. Potential Consequences of a Cashless Society

While the move towards a cashless society offers several advantages, it also raises concerns and potential consequences:

a. Financial Exclusion

Not everyone in Australia has access to digital payment methods, especially vulnerable groups such as the elderly, low-income individuals, different cultures, and those living in remote areas. A cashless society could inadvertently exclude these populations from participating fully in the economy.

b. Privacy and Surveillance

Cash transactions offer a certain level of privacy, as they do not leave a digital trail. In contrast, digital payments can be tracked, raising concerns about data privacy and surveillance. Striking the right balance between convenience and personal privacy is crucial.

c. Cybersecurity Risks

As the volume of digital transactions increases, so does the risk of cyber threats and data breaches. It becomes imperative for financial institutions and businesses to invest in robust cybersecurity measures to protect customer data and funds.

4. Is a Cashless Future Inevitable?

While cash usage has been declining steadily, it is unlikely that cash will become entirely obsolete in the foreseeable future. Despite the rise of digital payments, there will still be a demand for cash for various reasons:

a. Emergency Situations

Cash remains essential in emergencies where digital infrastructure may be compromised. Natural disasters or technical failures could disrupt digital payment systems, making cash a reliable backup.

b. Cultural and Behavioral Factors

Some individuals and communities prefer using cash for cultural or personal reasons. Additionally, older generations may have a solid attachment to physical money, and their preferences must be considered as we move forward.


The shift towards a cashless society in Australia is undeniably underway, driven by the convenience of digital payments, hygiene concerns during the pandemic, technological advancements, and business incentives. While a cashless future is probable, cash is unlikely to become obsolete shortly due to financial exclusion, privacy concerns, and cybersecurity risks. Striking the right balance between the benefits of digital payments and the accessibility and privacy of cash will be crucial in shaping the financial landscape of Australia in the coming years.

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