Cash Use Rises in Australia for First Time in Almost Two Decades
In a surprising reversal of a long-term trend, cash use is increasing in Australia for the first time since 2007. Millions of Australians are returning to notes and coins, even as card payments and tap-and-go systems continue to dominate the payment landscape.
Reserve Bank Data Shows Significant Shift
New figures released by the Reserve Bank of Australia reveal that approximately half the population continues to use cash on a weekly basis. The central bank's latest consumer payment survey indicates cash accounted for 15.4 per cent of all payments in 2025, up from 13.3 per cent just three years earlier.
This marks the first increase in cash payment usage since the survey began in 2007, though it remains substantially lower than the 69 per cent recorded at the survey's inception. The Reserve Bank emphasized that "cash supports economic inclusion, serves as a fallback if electronic payments are unavailable, and is an important store of value, particularly during periods of economic uncertainty."
Where Australians Are Using Cash Most Frequently
The survey, conducted every three years with 1,200 participants recording transaction details over seven days, uncovered specific patterns in cash usage:
- Leisure activities accounted for approximately 34 per cent of cash payments in 2025, with Australians consistently using cash more frequently for cinema visits and local community events
- In-person transactions at shops totaled nearly 20 per cent, improving from 16.4 per cent in 2022
- Low-value payments under $10 saw around one-in-four transactions made with cash
- Transport payments made up about 15 per cent, reflecting increased card usage for public transport and rideshares
Why Australians Are Returning to Physical Currency
The Reserve Bank identified several key reasons why millions of Australians continue to value cash:
- As a reliable backup when electronic payment systems fail or experience outages
- As an effective budgeting tool for household financial management
- As a preferred payment method for many older Australians
- To pay merchants who only accept cash payments
- For making payments to family and friends
- For security and privacy reasons in certain transactions
- To avoid surcharges commonly applied to card payments
Approximately 20 per cent of respondents specifically mentioned wanting to use cash to avoid payment surcharges and preferring it for low-value transactions.
Demographic Patterns in Cash Usage
The survey revealed distinct user categories among the Australian population:
- High cash users (about 3 per cent) use physical currency for 80 per cent or more of their transactions
- Low cash users (about 17 per cent) use cash for up to 20 per cent of transactions
- The median amount carried in wallets was $65
"Australians across all demographic groups continue to use cash to make their everyday payments," the bank noted in its report issued on Monday.
The Broader Context of Cash in Circulation
Despite the digital payment revolution, there remains more than $100 billion worth of Australian banknotes in circulation. This substantial figure underscores cash's enduring role in the national economy, even as payment preferences evolve.
The resurgence of cash usage represents a notable development in Australia's payment ecosystem, challenging assumptions about the inevitable decline of physical currency in an increasingly digital world. The Reserve Bank's findings suggest that cash will continue to play multiple important roles for the foreseeable future.
