Reserve Bank of Australia report reveals a third of Aussies would face hardship without access to cash

A third of Australians would face hardship without access to cash, a new Reserve Bank report has revealed, with the proportion of transactions done with banknotes increasing despite the prevalence of contactless payments.

Before the pandemic in 2019, a third of transactions at the checkout were done in cash but the bleeding of cash use in the aftermath of COVID appears to have reversed.

In 2025, 15 per cent of payments were made in cash up from 13 per cent in 2022.

The number of in-person payments increased to 19 per cent, up from 16 per cent.

Despite cash now only making up a very small proportion of everyday transactions, about half of Australians still used cash in a typical week and a third would struggle without it, the RBA report by analysts Kieran MacGibbon, Michelle Royters and Faye Wang said.

“The results suggest that one-third of Australians would face hardship or major inconvenience if cash was difficult to access or if shops did not accept cash,” the report said.

“Many Australians still carry cash for unexpected transactions or in case electronic payments are not available.

“Cash use has stabilised over the past few years, following a trend decline over recent decades.”

Those using banknotes are much more likely to be buying something like a cup of coffee.

“Cash continued to be used more frequently for lower value transactions. Around one in four payments under $10 were made with cash,” the report said.

Banknotes are also used more often for going to the cinema and local community events.

But it’s becoming much rarer for restaurant and takeaway meals, taxis, public transport and parking.

“This reflects the increased use of contactless card payments, growth in ride-share services, and a shift towards digital payment methods across most public transport systems,” the report said.

The baby boomer generation and those living in regional areas were also much more likely to still be using cash, with 10 per cent of those aged 65 and older using cash for all their transactions.

During any given week, 1.5 million adults also relied on cash to make all their payments.

Cash use was more likely outside capital cities but the difference between urban and regional areas had been shrinking since the 2010s.

Three-quarters of Australians also still carry cash in their wallet or purse in preparation for electronic payments not working.

Despite widespread concern about unreliable electronic transactions, it’s getting hard to access cash with the number of bank branches and ATMs in decline.

“Maintaining reasonable access to withdrawal and deposit services is important for Australians who want or need to use cash, but the 2025 results suggest that accessing cash has become less convenient than it was three years ago,” the Reserve Bank report said.

Merchants are also finding it harder to access cash, with the problem not confined to consumers.

“More than two-thirds of merchants that accept cash reported challenges doing so, including finding it difficult to access places to deposit and withdraw cash, running out of change and having higher withdrawal and deposit fees,” the Reserve Bank said.

A ban on card surcharging from October 1 would be unlikely to discourage Australians from having cash handy, Canstar data insights director Sally Tindall said.

“This won’t spell the end of cash, with the RBA survey showing there’s a huge range of reasons people pay with cash whether that’s for budgeting purposes, to pay the kids’ pocket money or for privacy reasons,” she said.

“Based on these survey results, cash isn’t going anywhere, anytime soon.”

Since January, Federal law has required most fuel and grocery retailers to accept cash for in-person purchases of up to $500, between 7am and 9pm.

Exceptions were made for small business, defined as an entity with an annual turnover of $10 million or less.

Consumer and community groups have argued cash is needed for lower-income groups who tend to have fewer payment options and struggle with online banking.

Those in remote areas, including Aboriginal residents, also have less reliable digital services.

The RBA calculations were based on data from Colmar Brunton, Ipsos and Roy Morgan Research.