Cash Use in Australia Increases for the First Time in Decades

Topic: Currency

A new report found that cash use in Australia has increased for the first time in decades.

In short:

The Reserve Bank of Australia's survey found that cash use dropped by over 50 percentage points in almost 20 years.

The use of cash has grown slightly, with just under half of people not using cash compared to about 53 per cent in 2022.

People under 30 were least likely to use cash, while those over 65 used cash the most.

Before the global financial crisis, cash was the most common way to pay for things.

More than two-thirds of transactions in Australia in 2007 were made with cash.

In 2025, it was about 15 per cent.

The Reserve Bank of Australia's survey found that cash use has increased, albeit slightly.

Cash use reached its lowest point in 2022, falling by about half from 2019.

There was an increase in in-person transactions, which lifted from 16 per cent in 2022 to 19 per cent in 2025.

Payments under $10 were the most popular size of cash transaction.

But the volume of these transactions is still just a small part of what it was 20 years ago.

What are Australians spending their cash on?

The survey found that cash use either stayed the same or increased across every consumer spending category.

Leisure has moved to top spot on cash spending ahead of food, retail and transport.

The report authors say this is likely due to the use of contactless payments and digital payments in public transport systems.

Australians have consistently used cash more frequently to pay for leisure.

The Commonwealth announced that businesses must accept cash as payment for groceries, fuel and other essentials.

Prior to the policy, about 94 per cent of businesses in the country accepted cash payments.

At present, Australia has one cash distributor, Armaguard.

The Australian Competition and Consumer Commission allowed the Australian Banking Association's members to collaborate on ways to ensure cash could continue to flow around the country.

How frequently are Australians using cash?

The report found about half of Australians use cash on a weekly basis.

The report identified 1.5 million Australians as high cash users, meaning they pay with cash for 80 per cent of their transactions.

They made up about 7 per cent of respondents, which was about the same as the previous reporting period in 2022.

The share of respondents who did not use cash at all in the survey week was relatively stable between 2022 and 2025.

But when survey authors asked respondents about their cash use outside of the survey period, only 13 per cent said they never used cash.

The survey found people who used cash for a larger portion of their transactions tended to be older, and in lower-income households.

It found about 10 per cent of respondents over 65 used cash for all their transactions in 2025.

Report authors highlighted cash was integral for vulnerable communities who had fewer payment options.

They also said cash was important for those who struggled to gain access to online banking, such as those living in remote areas.

The downward trend of cash use was starting to reverse across demographics.

The share of payments made with cash was stable not only among high cash users, but also among respondents of different ages, incomes and locations.

This contrasts with the results from previous surveys, which showed a trend decline in the use of cash across all demographic groups.

How do Australians feel about cash?

About a third of survey respondents said they would face hardship or a major inconvenience if they were not able to withdraw cash.

About 20 per cent said they used cash to avoid paying surcharges.

The RBA announced it would remove surcharges on debit and credit cards, which will come into effect on October 1.

The report found about two in five respondents carried cash in their wallets for emergencies.

It also found three-quarters of those surveyed held cash in their wallets in 2025, with the median amount held about $65.

Suggesting that they could cover a typical in-person payment during a short outage affecting electronic payments by using the cash in their wallets.

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