Australia Sees First Cash Use Increase in Decades

For the first time in nearly 20 years, cash is making a comeback in Australia.

The Reserve Bank of Australia's 2025 Consumer Payments Survey revealed that cash use increased slightly after hitting rock bottom in 2022. While cash still accounts for only 15 percent of transactions today compared to 67 percent in 2007, the upward tick marks a surprising reversal in a country that seemed destined to go completely cashless.

The shift coincides with more Australians shopping in person again. In-person transactions rose from 16 percent in 2022 to 19 percent in 2025, giving people more opportunities to pay with physical currency.

About half of Australians now use cash weekly, with leisure activities topping the list of cash spending categories. People are reaching for their wallets at concerts, sporting events, and entertainment venues more than anywhere else.

The survey identified 1.5 million Australians as "high cash users" who pay with physical money for 80 percent of their purchases. These dedicated cash carriers tend to be older and from lower-income households, but the trend toward using cash stabilized across all age groups and income levels.

Older Australians lead the way, with 10 percent of people over 65 using cash for all their transactions. Meanwhile, those under 30 remain the least likely to carry physical currency.

The Ripple Effect

This small shift matters more than the numbers suggest. About a third of survey respondents said losing access to cash would cause them hardship or major inconvenience, highlighting how essential physical money remains for vulnerable communities.

Cash proves especially vital for people in remote areas and First Nations communities who struggle to access reliable internet banking. For them, the ability to use physical currency isn't just convenient but necessary.

Three-quarters of Australians now carry cash in their wallets, with the typical amount around $65. Many said they keep it for emergencies, like covering purchases during power outages that knock out electronic payment systems.

The government has taken notice of cash's enduring importance. A new policy requiring businesses to accept cash for essentials like groceries and fuel took effect this year, ensuring Australians can always pay the old-fashioned way when they need to.

Sometimes the best way forward includes remembering what worked in the past.