New Reserve Bank of Australia (RBA) data reveals that Australians made more payments with cash in 2025 than in 2022, marking the first rise since tracking began in 2007. Cash accounted for 15 percent of payments in 2025, up from 13 percent in 2022.
Reversing the Downward Trend
For years, cash usage followed a steady decline as contactless cards and digital wallets gained popularity. This shift has now paused, with many Australians keeping cash as an emergency reserve. In 2025, half of all Australians used cash during a typical week.
In terms of value, cash represented 8 percent of payments, consistent with 2022 levels. It remains popular for small transactions, with one in four payments under $10 conducted in cash.
The RBA emphasizes that these findings underscore cash’s vital role in creating an inclusive and resilient payments system.
Demographic Insights
Older Australians over 65 rely on cash more heavily, with about 10 percent using it for all transactions. Lower-income groups and those in regional areas also favor cash slightly more. However, usage remains stable across all age groups, income levels, and locations.
Around 7 percent of respondents qualify as high cash users, where cash comprises at least 80 percent of transactions—unchanged from 2022. Similarly, half of respondents reported no cash use at all.
Reasons Behind Cash Preference
Australians cite practical factors for using cash, including merchants that accept only cash, budgeting to manage spending, payments to family and friends, and concerns over security and privacy. About 20 percent use cash to dodge card surcharges, though this may change following the RBA’s plan to eliminate such fees on debit and credit cards later this year.
Three-quarters of Australians carry enough cash as a backup in case digital systems fail. Cash sees more use for leisure activities, such as cinema visits, than for daily essentials.
Government and RBA Commitments
RBA Governor Michele Bullock stated in 2025 that cash will likely remain available for another decade. RMIT Associate Professor of Finance Angel Zhong predicts Australia will achieve functional cashlessness by then, meaning most payments shift digital while cash stays accessible.
One-third of Australians anticipate hardship or significant inconvenience if cash access becomes limited or merchants refuse it. The payment method proves essential for those facing online banking challenges, residents in remote and First Nations communities with poor digital access, people with disabilities, and individuals fleeing financial abuse.
The federal government enforces cash acceptance at fuel and grocery retailers starting January 1, 2026. The RBA pledges support to maintain cash viability as long as demand persists.
