Pros and Cons of a Cashless Society in Australia

Australia’s heading towards a future where cash might soon be a thing of the past. These days, you can grab a coffee, pay for a haircut, or shout a round at the pub without ever touching a banknote. Just tap your card or phone and you’re sorted.

We’ve gotten used to it. It’s quick, easy, and we don’t have to fumble around with coins anymore. But at the same time, a lot of people are wondering, are we moving too fast? Is a completely cashless society actually a good thing for everyone?

Here’s a look at the ups and downs of going cashless in Australia, written without the fluff, just a good ol’ Aussie yarn about what’s working, what’s not, and what we should be thinking about.

The Upside: Why Going Cashless Works

1. It’s Bloody Convenient

Let’s be real! Nobody misses standing in line for the ATM or carrying around a jangly wallet full of coins. With tap-and-go, Apple Pay, or PayID, you can pay in seconds and move on with your day. Whether you’re at Coles, a weekend market, or the servo, digital payments make life simpler.

Even when you’re splitting a dinner bill or paying your share of the rent, it's dead easy to send money straight from your banking app. No more awkward “I’ll pay you later” excuses.

2. Makes Business Easier Too

For business owners, ditching cash saves a ton of time. No more counting tills, no more running to the bank with the day’s takings, and way fewer errors when it comes to handling change. Everything’s cleaner and easier with digital transactions, and it’s all trackable in real-time.

Most POS systems now handle reporting, staff timesheets, and even stock tracking. Not bad for a system that started with just tapping a card.

3. Less Risky Than Carrying Cash

Carrying cash always comes with a bit of a risk, whether it’s being robbed, losing your wallet, or just dropping a note on the street. With digital payments, you can freeze your card instantly or tap into your app to keep things secure. Plus, if someone tries something dodgy, most banks will help sort it out.

And from a broader point of view, less cash floating around means less tax dodging, less crime, and more transparency overall.

4. Helps the Tech Industry Grow

Aussie fintech is booming. We’ve got homegrown names like Afterpay and Zip changing how people shop, and app-based banks like Up and 86 400 popping up with smart features you’d never see in the old days.

And with things like wearable payments—smartwatches, payment rings, and even phone cases that let you tap—we’re not just cashless, we’re also hands-free.

5. Good for Travel Too

Heading overseas or welcoming tourists? Cashless makes it easier. Most places overseas now accept Aussie credit/debit cards or Apple Pay. And tourists visiting here don’t need to worry about exchanging wads of currency—they can just tap like the locals.

6. Cleaner and More Hygienic

After COVID hit, the idea of handing over physical money didn’t sit well with many people. It’s no surprise shops pushed for contactless payments during the pandemic—and it’s stuck. It’s just cleaner, and we’ve all gotten used to it.

The Downside: What We Lose Without Cash

1. Some People Get Left Behind

Not everyone’s on board with digital payments, and not everyone can be. Older folks, people with disabilities, some remote communities, and low-income Aussies often still rely on cash. Not everyone owns a smartphone or has reliable internet.

When we go fully cashless, we risk leaving these people out. That’s not fair, and it’s something we need to think hard about.

2. We’re Giving Up Our Privacy

Every time you tap your card or transfer money, that data gets recorded. It’s convenient, sure, but also means your buying habits, locations, and spending patterns are all being tracked by banks, apps, and sometimes advertisers.

Even if you trust your bank, what happens if there’s a data breach? Not everyone’s comfortable with their financial life being so exposed.

3. Tech Can Fail

What happens when the system goes down? Maybe there’s a power outage, an app crashes, or your bank’s network has a hiccup. Suddenly, you can’t pay for lunch or fill up your tank.

We've had big outages before, EFTPOS networks dropping out across the country. In those moments, it’s cash that saves the day. Having a backup isn’t old-fashioned, it’s smart.

4. Transaction Fees Can Sneak In

Using cards and apps might feel free, but there are often hidden fees. Businesses usually pay a small fee on every tap, and those fees can add up. Some shops pass the cost onto customers, meaning you might pay more than if you used cash.

Also, it’s way too easy to fall into traps like buy-now-pay-later services. You don’t feel the money leaving your hand, so it’s easier to overspend or rack up debt.

5. Too Much Power in Too Few Hands

A fully cashless society puts a lot of trust in banks, card companies, and tech giants. They’re the gatekeepers, and if something goes wrong, like your account being frozen or a system being hacked, you could be locked out of your money with no quick fix.

Cash gives you independence. When it’s gone, we’re relying 100% on someone else’s rules.

6. It’s Harder to Budget

There’s something about using physical cash that helps people stay on budget. You can literally see it disappearing from your wallet, which makes you think twice before spending.

With cards or phones, it’s easy to lose track. A few taps here and there, and suddenly you’ve spent $200 in a weekend without noticing.

Are Aussies Actually Ready for a Cashless Society?

In many ways, yes, we’re already halfway there. According to the Reserve Bank, fewer than 15% of payments in Australia were made using cash in 2023. In 2007, that number was around 70%. So yeah, it’s a massive shift.

A lot of shops and cafes now have signs saying “card only.” Some don’t even have a cash drawer anymore. And with bank branches shutting down across regional areas, people who still want to use cash are struggling to access it.

But that doesn’t mean everyone’s ready. There’s a big difference between offering digital as an option and forcing people into it.

So, What’s the Answer?

Going fully cashless might make sense in theory, but in reality, we need to be careful. The goal shouldn’t be “no cash”,  it should be “cash optional.” That way, people who love digital can tap away happily, and those who need or prefer cash aren’t left behind.

We also need to focus on education. Help older Aussies get comfortable with digital banking, make sure remote communities have internet access, and improve financial literacy so everyone can make informed choices.

And maybe, just maybe, we should all keep a few notes tucked away for emergencies, just in case.

Final Word

There’s no doubt we’re heading toward a cashless Australia. It’s modern, it’s efficient, and for many of us, it works great. But we’ve got to make sure we bring everyone along for the ride.

Tech should make life easier, not harder, for the average Aussie. So while it’s great to tap and go, let’s not forget the value of real, tangible money. After all, you can’t tap your phone if it’s out of battery and you’re stuck at a country servo 200km from home.