The push towards a cashless Australia has gained momentum, with digital payment methods becoming an integral part of daily life. However, this rapid shift has a human cost, leaving many Australians, especially older individuals, those with disabilities, and residents of regional areas, feeling increasingly disconnected from the economy.
According to the Australian Banking Association's report, "Bank on It 2025," mobile wallet payments reached a staggering $160 billion last year, with a remarkable 23-fold increase in transactions since 2019. Anna Bligh, the former chief executive, commented on this transformation, stating, "More and more Australians are embracing digital banking, reshaping the way they interact with their financial institutions."
But here's where it gets controversial: while banks claim to support those who prefer face-to-face services, the reality is quite different. Traditional banking infrastructure is rapidly disappearing. Between 2011 and 2024, the number of bank branches decreased by almost 50%, with a significant decline in ATMs as well. Banks justify these closures by citing a decrease in branch interactions, but a senate committee inquiry revealed that this digital shift might not always be customer-led.
The committee's report highlighted the impact on vulnerable groups, including older Australians, First Nations residents, and those with limited English proficiency. It recommended recognizing banking as an essential service and even exploring the creation of a publicly owned bank to protect regional access.
For Australians living in remote areas, the situation is even more challenging. The Reserve Bank's analysis shows that while most city dwellers have easy access to cash withdrawal points, those in remote regions face significant distances. As of June 2024, people in major cities had an average distance of 1.6km, compared to 95km in very remote areas. The overall number of cash access points is shrinking, leaving some communities vulnerable to further withdrawal.
Digital exclusion compounds the problem, with approximately 1.3 million Australians over 65 and 1.1 million people with disabilities facing high levels of digital exclusion. Remote First Nations communities face additional barriers due to limited or expensive internet access, making in-person banking crucial for financial protection and preventing abuse.
For individuals like Heather Lewis, a Melbourne woman with disabilities, cash is not just a preference but a necessity. She relies on cash to feel safe and in control of her finances, and the decline of cash services threatens her independence.
"Removing cash takes away our independence. I feel much safer with cash, and I have control over my money," Ms. Lewis said.
The decline of cash also impacts low-income households, who use cash as a budgeting tool, and domestic violence survivors, who need discreet ways to save money.
As Australia moves closer to a cashless society, policymakers must address these concerns to ensure that technological progress benefits all, not just a select few. 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 more needs to be done to protect the rights and choices of all Australians.
