The push towards a cashless Australia is gaining momentum, with mobile payments and tap-and-go becoming the new normal. However, this rapid shift has a human cost that often goes unnoticed.
While the convenience of digital payments is undeniable, the decline of cash is leaving a significant portion of the population, especially older adults, regional residents, and individuals with disabilities, feeling increasingly disconnected from the economy.
According to the Australian Banking Association's report, mobile wallet payments reached a staggering $160 billion last year, with a 23-fold increase in transactions since 2019. This transformation in banking has been described as a "massive" change by former CEO Anna Bligh, who highlights the growing preference for digital options and the surge in mobile wallet usage.
But here's where it gets controversial: as digital banking becomes the dominant force, with 99.3% of customer-bank interactions now online, traditional banking infrastructure is rapidly disappearing. The number of bank branches has decreased by almost 50% since 2011, and ATMs have declined by over a quarter since 2016. Banks justify these closures by citing a decline in branch interactions, but a senate committee inquiry suggests that this shift might not always be customer-led.
The committee's report was critical, finding that industry self-regulation has failed regional Australia and warning that closures are threatening the socio-economic viability of communities. Vulnerable groups, including older Australians, First Nations residents, and those with limited English, are disproportionately affected.
And this is the part most people miss: the impact on remote and regional areas. New analysis from the Reserve Bank reveals that while most Australians live close to a cash withdrawal point, the situation changes dramatically with remoteness. In very remote areas, people may need to travel up to 95km to access an authorized deposit-taking institution (ADI) branch. The overall number of cash access points is shrinking, with over 9100 ATMs disappearing since 2016.
For individuals like Heather Lewis, a Melbourne woman living with disabilities, access to cash is not a preference but a necessity. She relies exclusively on notes and coins because it gives her a sense of safety and control over her finances.
"Removing cash is taking away our independence," Ms. Lewis said. "I feel much safer with cash, and I have control over my money."
Ms. Lewis visits her local bank branch in Melbourne's outer east every fortnight to withdraw her full Disability Support Pension, carefully organizing her cash into labeled plastic slips for different expenses. She feels more comfortable using cash, as it helps her manage her money and stay independent.
The decline of cash services not only affects individuals like Ms. Lewis but also compounds the problem of digital exclusion. Approximately 1.3 million Australians over 65 and 1.1 million people with disabilities are highly digitally excluded. Remote First Nations communities face additional challenges, with limited or expensive internet access making in-person banking essential for complex financial tasks and protection against financial abuse.
"I still go shopping and get the things I need. I value my independence," Ms. Lewis said. "People should have the choice to access and use their money as they wish."
Despite its declining use, cash remains vital for various reasons. It serves as a backup during outages or natural disasters, provides privacy, and is resistant to fraud. For low-income households and domestic violence survivors, cash is an important budgeting tool and a means to save money discreetly.
As Australia moves closer to a cashless society, policymakers must ensure that technological progress does not further marginalize vulnerable groups. The federal government's plan to mandate cash acceptance by essential service providers from January 1, 2026, is a step in the right direction, but the challenge remains to find a balance between convenience and inclusion.
