For many Australians, the humble $20 note tucked away in a wallet or the loose change rattling around in the car console is a comforting reminder of simpler times.
But if you’ve reached for your card or phone more often than your wallet lately, you’re not alone. A new figure has emerged as a telling sign that Australia’s cashless future isn’t just coming. It’s already here.
Let’s start with the headline number. According to recent analysis of Reserve Bank of Australia (RBA) and Australian Bureau of Statistics data, the amount of cash in circulation per person has dropped from $3,987 in 2021 to $3,750 in March 2025.
While that might sound like a lot, it’s a sign that, on a per-person basis, Australians are holding less cash than before—even as the total value of money in the economy continues to rise.
Why the contradiction? The answer lies in how we use cash. The RBA has found that while there’s more physical money floating around than ever, most of it isn’t being spent.
Instead, it’s being stashed away as a ‘store of wealth’—think of those $50 and $100 notes hidden in sock drawers or safe deposit boxes.
A staggering 94 per cent of the value of all banknotes in circulation is in these higher denominations.
If you’re wondering whether this means we’re truly on the brink of a cashless society, the data is pretty straightforward. In 2007, cash was king, accounting for about 70 per cent of all transactions.
Fast-forward to 2022, and that number had plummeted to just 13 per cent, according to the RBA’s Consumer Payments Survey. Cash now makes up only 8 per cent of all payments by value.
The trend is only accelerating. The RBA projects that by 2030, cash will be used for just 4 per cent of transactions.
And Finder’s Consumer Sentiment Tracker reveals that more than half of Australians never carry banknotes.
Some groups, like Cash Welcome (partially funded by the ATM industry), argued that cash is still alive and well.
They pointed to the rising total cash value in circulation and stabilised ATM withdrawals since the pandemic. But a closer look at the numbers tells a different story.
ATM withdrawals have steadily declined since 2009, dropping from around 75 million monthly to just 28 million. Even with a slight post-lockdown bump, usage remains well below pre-pandemic levels.
While 16 per cent of in-person transactions still involve cash, that’s a far cry from the dominance cash once enjoyed.
Why are we holding onto cash?
Why are we holding onto so much cash if we’re not spending it? The RBA suggested it’s for ‘precautionary and store-of-wealth purposes’.
In uncertain times, many people like the security of having cash on hand, just in case. However, digital payments have become the norm for everyday purchases.
The shift to digital payments brings plenty of benefits: convenience, speed, and the ability to track spending. But it’s not without its downsides. For some Australians—especially older people, those in rural areas, or anyone without easy access to technology—the move away from cash can be challenging.
There are also real human costs. People experiencing homelessness, for example, often rely on cash donations. While some vendors (like those selling The Big Issue) have adapted by accepting card payments, not everyone has that option.
The hidden costs of going cashless
It’s easy to assume that digital payments are cheaper and easier for everyone, but that’s not always true. Businesses often face fees for accepting cards, and many pass those costs onto customers as surcharges.
On the other hand, handling cash isn’t free either—storing, counting, and securing physical money takes time and money, and those costs rise as cash use declines.
There’s also a tax angle to consider. Cash-only businesses can sometimes operate ‘off the books’, reducing government revenue and potentially impacting funding for essential services.
Some argue that businesses should be required to accept cash to ensure no one is left behind. Others say that mandating cash acceptance is outdated in a world where nearly nine in ten transactions are digital.
Countries like the United Kingdom have taken a different approach, banning surcharges for any payment type to level the playing field.
Do you still carry cash, or have you gone fully digital? How do you feel about moving towards a cashless society? Does it make life easier, or do you worry about what might be lost along the way? Share your thoughts and experiences in the comments below.
Also read: Did you join the cashless protest? Here’s what really happened when Aussies tried to drain ATMs!
Good luck with your cashless society. Ever waddled up to shop and everyone is standing around with the classic ‘stunned mullet’ look. Someone says ‘the internet is down, sorry, cash only’. Had this situation recently at a garage where the proprietor came running out to five fresh arrivals to advise the internet was fritzed ’cash only’ and four others promptly jumped back in and drove off. Some others have not even a notepad to record cash transactions.
I usually carry around $200 in my wallet, and use it during the week, mainly at stores etc, that have a surcharge for using my card or phone !!!
I always get a receipt, and file it, cash in one folder and electronic in another, thereby keeping tabs on what I spend and the method of payment !!!
I boycott some businesses that don’t take cash.
Others I cannot avoid like the doctor that only accepts online payments.
Remember what Justin Trudeau and his government did to the freedom protesters, as well as those who donated to them. You must be idiotic if you don’t learn from events like this.