Aussies will never go cashless because regional and remote communities are still use cash for day-to-day transactions, a finance expert says.
Despite the increasing use of digital payments by Aussie customers over the past few years, recent data shows cash withdrawals are increasing.
Reserve Bank of Australia data showed Australians made 30,859,700 ATM cash withdrawals in February, up 3.6 per cent compared with February 2023.
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The previous month there were 30.2 million ATM withdrawals, worth more than $9 billion, the highest collective sum since July 2020. The numbers pointed to a backlash for cash.
On Tuesday, ING financial expert Matt Bowen joined Monique Wright on Sunrise, where he pointed out that regional and remote Aussies still needed cash for transactions.
“If you’re one of the few Aussies spending your $50 and $20 notes, you are in the minority. Cash has declined significantly,” Bowen said.
“About 70 per cent of transactions face-to-face in 2007 were using cash, it is down to around 13 per cent now. Will we see the decline of cash? I’m not sure.
“There is still around 25 per cent of Aussies who live in regional and remote communities still very reliant on cash for day-to-day transaction, which is unlikely to change any time soon.
“There is still a big portion of consumers that believe you actually spend more when you’re tapping your card.
“It is easier to save money and control your budget when you’re using cash and, of course, the one thing we can’t replicate is that feeling of the $20 bill falling out of a birthday card from grandma.
“That’s something that can’t be replicated with a bank transfer.”
The battle over cash and digital payments has intensified over the past few months, with a huge response to Cash Out Day in April.
People were encouraged to withdraw money from ATMs to signify their continuing need to use cash.
ATM provider Next Payments reported a 6.2 per cent increase in cash withdrawals in the country compared with April 2, 2023.
Cash Welcome campaigner Jason Bryce said at the time Australians were being “fettered against their will into a cashless society” because banks didn’t want to bear the costs, but Australians still wanted to use cash.
“Banks can’t create a cashless transaction system that’s 100 per cent reliable, that’s 100 per cent private and is surcharge free and these are the things people love about cash,” Bryce said.