Millions of Australians at risk as cash access disappears

Australians are embracing a cashless future at record speed, with mobile wallets and tap-and-go payments now embedded in daily life.

But while the convenience of digital payments is undeniable, the rapid decline of cash is leaving millions of Australians, particularly older people, regional residents and people with disabilities, increasingly cut off from the economy.

Mobile wallet payments hit $160bn last year, according to the Australian Banking Association’s (ABA) 2025 Bank on It report, which also revealed mobile wallet transactions had grown 23-fold since 2019.

Commenting on the ABA report, former chief executive Anna Bligh said Australia was experiencing “a massive transformation in how people bank in this country”.

“More and more Australians are jumping online to do their banking. Digital options are reshaping how people interact with their bank and manage their finances,” Ms Bligh said.

“Making payments with your phone is also now the norm for millions of customers. Mobile wallet usage continues to surge and is closing in on the use of physical cards or cash.”

Ms Bligh added that despite the shift, banks “continue to support those who still prefer face-to-face services”, pointing to more than 3300 branches and 3400 Bank@Post outlets.

The retreat of face-to-face banking

As digital banking becomes dominant, with 99.3 per cent of customer-bank interactions now online, traditional infrastructure is vanishing at pace.

Between 2011 and 2024, the number of bank branches fell by almost 50 per cent or 3239 locations. In the year to June 2024 alone, 230 authorised deposit-taking institution (ADI) branches closed.

ATMs have declined by more than a quarter since 2016, largely due to the removal of bank-owned machines.

Banks justify the closures by pointing to a 51 per cent fall in branch interactions since 2019, but a senate committee inquiry into regional banking found the digital shift wasn’t always customer-led.

The inquiry heard evidence from the Finance Sector Union suggesting banks had deliberately “pushed” customers online, undermining claims that closures simply reflect consumer preference.

The committee’s final report was scathing, finding industry self-regulation had failed regional Australia and warning that closures were “threatening the socio-economic viability” of communities.

Vulnerable groups, including older Australians, First Nations residents and those with limited English, were being hit hardest.

It recommended the federal government recognise banking as an essential service, introduce a mandatory banking code of conduct, and even investigate the creation of a publicly owned bank to protect regional access.

Distance grows for remote Australians

New Reserve Bank analysis shows that while most Australians still live close to a cash withdrawal point, the picture changes dramatically with remoteness.

As of June 2024, 95 per cent of people in major cities lived within 1.6km of a withdrawal point, compared with 16km in outer regional areas, 32km in remote regions, and 95km in very remote areas.

For those living in remote areas, the maximum distance to an ADI branch has increased by 31km since 2017.

The RBA also found that the overall number of cash access points was shrinking. Since 2011, the number of ADI branches has fallen by nearly half, while more than 9100 ATMs have disappeared since 2016.

Although Australia Post’s Bank@Post outlets and independently owned ATMs help maintain coverage, the RBA warned that some communities remained “vulnerable to further withdrawal”, with 180 towns lacking any cash access point at all.

Even where services exist, they are not always adequate substitutes.

Independent ATMs often charge fees, not all banks participate in Bank@Post, deposit limits can be restrictive for small businesses, and cash-dependent customers are frequently unable to complete more complex banking tasks online.

Human cost of digital exclusion

For about 1.5 million Australians who use cash for 80 per cent or more of in-person transactions, the decline of cash services is a form of social exclusion.

For Melbourne woman Heather Lewis, access to cash is not a preference, it’s a lifeline.

Ms Lewis, who uses a wheelchair and lives with disabilities, told Choice that she relied exclusively on notes and coins because it was the only way she felt safe and in control of her finances. She said she would never feel comfortable handing over a bank card to a support worker.

“Removing cash is taking away our independence. If everything went that way, I’d have to have someone help me with everything,” Ms Lewis said.

“I feel much safer with cash and I have control over my money.”

Every fortnight, she visits her local bank branch in Melbourne’s outer east and withdraws her full Disability Support Pension, dividing the cash into labelled plastic slips for different expenses.

“I just feel more comfortable using cash. It keeps my money skills up and I know how much I have, how much I can spend or if I have to wait until the next payday,” she said.

“The banks are trying to force everybody online, even if it means taking away people’s independence. They don’t see the cost of what they are doing. It’s not right and it’s not fair, it should be my choice if I want to use cash.”

Ms Lewis has already noticed major chain stores refusing cash, a trend she fears will worsen as businesses increasingly rely on digital-only systems.

Digital exclusion further compounds the problem. About 1.3 million Australians over 65 are highly digitally excluded, along with about 1.1 million people living with disabilities.

Remote First Nations communities face additional barriers, with limited or expensive internet access making in-person banking essential for complex financial tasks and protecting against financial abuse.

For Ms Lewis, the risk is more than financial, it’s about dignity and agency.

“I still go shopping and get groceries and things that I need. I don’t want to have carers come in just for the sake of it. I value my independence,” she said.

“People need access to money and it shouldn’t matter how they want to access it or how they want to use it. It’s personal choice.”

Why cash still matters

Despite its declining use, from 70 per cent of consumer payments in 2007 to 13 per cent in 2022, cash remains vital for a range of reasons. It serves as a back-up during outages or natural disasters, provides a privacy-preserving payment method and is resistant to fraud.

Cash also remains an important budgeting tool for low-income households and a lifeline for domestic violence survivors who need to save money discreetly.

Armaguard, which distributes most of Australia’s cash, has warned that its operations are becoming unsustainable as demand falls.

The potential collapse of the cash-in-transit network remains a major systemic risk, particularly in regional areas where alternatives are scarce.

In response to growing concern, the federal government has announced plans to mandate that essential service providers must accept cash from January 1, 2026, with small businesses exempt.

The RBA has backed the move, emphasising the importance of keeping cash accessible “for those who need or prefer it”.

A Treasury consultation is also under way to examine the broader cash distribution system amid fears some communities may be left with no practical access at all.

As Australia races toward a cashless society, policymakers face the challenge of ensuring that technological progress does not leave the most vulnerable behind.