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Is Cash Still Queen in Australia?

  • Writer: Theresa Pham
    Theresa Pham
  • Aug 26
  • 4 min read

Updated: Sep 16

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No one wants your $5 note anymore. Your barista won’t take it. Your vending machine side-eyes you. And your friend with a budgeting spreadsheet just said, “Why don’t you just Beem me?”.


It feels like we’re heading toward a cashless Australia - and fast. But despite what tap culture and card-only signs suggest, cash isn’t quite out of the picture. In fact, it still plays a surprisingly crucial role, especially for budgeting, accessibility, and keeping some control over our spending. 


So let’s unpack this shift. Is going cashless just a sign of the times, or is there something worth holding onto in those crumpled notes?


Tap First, Ask Questions Later

The way Australians pay has changed dramatically over the last decade. According to the Reserve Bank of Australia’s 2023 Consumer Payments Survey, only 13 percent of in-person transactions now involve cash. That’s a significant drop from nearly 70 percent in 2010. Meanwhile, 95 percent of card payments are now contactless, showing just how quickly tap-and-go has taken over. 


The pandemic only sped things up. Suddenly, touching a pin pad felt risky, and contactless became the default. Add the rise of digital wallets, and you’ve got a culture that’s ditched the coin purse in favour of speed and convenience. But the shift isn’t just about tech. It also reflects a mindset that views frictionless spending as efficient - even when it comes at the cost of awareness.


The Case for Cash (Yes, Still)

Even though most of us tap without thinking, cash still has a role, especially if you’re trying not to blow your entire weekly budget in two days. There’s something about physically handing over money that makes it feel more real. That $28 brunch hits differently when it’s coming out of a $50 note instead of a card that resets its balance in your mind. It’s also why cash-stuffing and envelope budgeting are trending again. People want to feel in control, not disconnected.


But beyond budgeting, cash remains essential for many Australians. Around 2.5 million people are underbanked or don’t have reliable access to financial services. That includes older folks, newly arrived migrants, and low-income households. When a shop goes card-only, it might seem modern, but it also shuts the door on people who aren’t part of the digital system. Access to money shouldn’t depend on owning a smartphone or having perfect Wi-Fi.


There’s also something to be said for privacy. Every digital payment leaves a trail - one that’s easy to track, sell, and monetise. Cash doesn’t come with terms and conditions. It’s immediate, offline, and entirely yours.


For small businesses, especially family-run or community-based ones, cash can still be a lifeline. It helps them avoid transaction fees, banking delays, and unreliable payment systems. From market stalls to corner stores, cash continues to work when the EFTPOS doesn’t.


The Risks of a Tap-Only World

Going fully cashless might seem like the logical next step. It feels streamlined, modern, and efficient. But it’s not without its cracks. Card-only venues, whether by design or not, exclude people who don’t have access to banking or digital tools. There’s a class dimension to it as well. When physical money isn’t accepted, it quietly signals who these spaces are really made for.


Then there’s the issue of privacy. Every tap leaves a trail. Your transactions become data points - easily tracked, stored, and often monetised. That kind of convenience comes with strings attached.


Cashless systems also rely entirely on technology. No signal, no power, no working app? No payment. When everything runs on Wi-Fi or mobile data, even a simple transaction becomes vulnerable to tech failure - which isn’t exactly a safe bet.


So... What’s the Plan?

Despite the growing shift toward digital payments, both the Reserve Bank and Treasury have made it clear that cash still matters. Especially in regional communities and among vulnerable groups, physical currency plays a critical role. Australia is likely heading toward a hybrid system where digital payments dominate, but cash remains available as a backup.


Other countries, like Sweden, pushed hard to go fully cashless and are now walking some of that back due to concerns around accessibility and exclusion. Australia seems to be watching those developments carefully.


Is She Still Queen?

So, is cash still queen? Maybe not. But she’s definitely not been dethroned.


In a fast-moving, ultra-digital world, cash gives us something we don’t always realise we need - friction, awareness, and actual choice. It’s not just a throwback for older generations. It’s still serving a purpose for budgeting, privacy, inclusion, and resilience.


Especially for young people trying to stay financially afloat while being bombarded with spending options 24/7, having the option to pay in cash might be more empowering than we think.



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