‘Seems like a backward step’: Westpac scraps cardless cash withdrawal from ATMs across Australia from Friday

Westpac Bank announced it will be scrapping its cardless cash withdrawal feature, giving its banking customers just three days’ notice before the move comes into effect.

Cardless cash will no longer be available at the bank’s ATMs across Australia from 8pm AEDT on Friday.

“You can still make cash withdrawals using your physical card at ATMs, in branch, stores that accept cash out and Bank@Post,” Westpac told customers on Tuesday.

“Alternatively, you can use your digital card to perform transactions or send and receive money in real time using online banking.”

A Westpac spokesperson told 7NEWS.com.au the move had been made amid a transition towards more widespread digital banking.

Given the last-minute announcement, social media commentators theorised whether the move was made to improve security.

“Devastated by this as well. It seems incredibly sudden and unexpected. I can’t imagine it was any huge burden to maintain — so I can’t help but wonder if maybe it was being exploited, or used for fraud in some way?” one person wrote.

Another suggested making ATMs harder to use was part of a broader strategy by the bank to remove them altogether.

“Steps to justifying the removal of ATMs: 1 — Reduce usage by making it even harder for people to use. 2 — Remove ATMs,” they wrote on Reddit.

A Westpac statement spokesperson told 7NEWS.com.au the number of cardless cash withdrawals had declined over the past year.

“Over a 12-month period, we’ve seen a 21 per cent increase in mobile wallet transactions as more customers choose the speed, security and convenience of digital banking,” a Westpac spokesperson told 7NEWS.com.au.

“At the same time, there has been a decline in cardless cash withdrawals.

“Cardless cash deposits will continue to be available for customers.”

But the move comes as the overall number of ATMs is also declining across the country.

ATM presence points industry-wide in Australia have more than halved over the last six years, according to APRA, sparking outrage among communities with ethical concerns including accessibility roadblocks.

Banking customers reacted with surprise to the major bank’s move.

“Like a lot of people, I don’t carry a physical card with me anymore, so cardless cash is really my only option if I need cash unexpectedly. (It)seems like a backward step,” one person commented on Reddit.

“Wait, so need to use a physical card now? I haven’t even had a wallet for (five years),” another said.

“Devastating. I haven’t carried a physical card in 10 years. Would be good if you could tap your phone to withdraw cash as an alternative,” another said.