Latest news with #CashWelcome
9 News
15-05-2025
- Business
- 9 News
Explainer: Why are there so many banknotes, when hardly any of us are using cash?
Your web browser is no longer supported. To improve your experience update it here BREAKING The amount of banknotes circulating in Australia is at a near-record level not seen since the height of the pandemic. The latest figures from the Reserve Bank of Australia (RBA) balance sheet , released last week, show there is a staggering $103.7 billion in notes in circulation. As pro-cash advocacy group Cash Welcome points out, there has almost never been more cash physically circulating in Australia. The amount of physical cash circulating in Australia is at a near-record high. (iStock) "The all-time record for the total value of Australian notes circulating is $103.99 billion set in December 2022," the group's founder, Jason Bryce, said. Bryce points towards the rise in the amount of banknotes in circulation as proof that Australia is far from heading towards a cashless society. Yet, the fact remains that fewer and fewer of us are using physical cash in our everyday lives. So, what exactly are Australians doing with all these banknotes? The answer is more likely to be shoving them under our mattresses than using them at the supermarket checkout. Just a small proportion, between 9 and 26 per cent, of all banknotes are now used for what they were originally intended - legitimate everyday purchases. A further 5–9 per cent of banknotes in circulation have likely been lost, the analysis found, while another 7–11 per cent are used in the so-called 'shadow economy' for nefarious or criminal transactions. The vast majority of our banknotes, however, about 55-80 per cent, are being hoarded, the RBA estimates. "The dichotomy of strong banknote demand alongside falling transactional use suggests banknotes are being hoarded, likely for store-of-wealth or precautionary savings purposes," the RBA said in its analysis. The chart, provided by Cash Welcome, shows the amount of cash in circulation from 2022 to 2025. (Cash Welcome) One strong clue pointing towards hoarding is the demand for high-denomination banknotes, the RBA noted. While growth in low-denomination banknotes, $5, $10 and $20 notes typically used for everyday transactions, has only increased by an average 1 per cent annually since 2007, the number of $50 and $100 notes in circulation has shot up by around 5 per cent a year during the same time period. The situation indicated "much of the increase in banknote demand over this period was for hoarding purposes", the RBA said. However, far from becoming a nation of hoarders, it's likely to be a minority of Australians who are skewing the figures and hanging on to all of that cash. A 2022 RBA consumer payments survey found 60 per cent of respondents did not hold any cash outside of their wallet. "Instead, large amounts of cash are likely hoarded among a relatively small number of individuals," the RBA said. Associate Professor Andrew Grant, from the University of Sydney Business School, said that although people holding onto cash were sometimes painted as paranoid or doomsday preppers, there were legitimate and rational reasons behind the trend. High-profile cases of cyber attacks had led to a lack of trust in banks and other institutions, while previous outages in electronic payments systems showed the danger of relying on our cards and phones, he said. "I think people certainly do feel like even our electronic systems aren't infallible," Grant said. "We have seen instances where the Optus network has gone down, for instance, and then people can't buy anything because all of the shops are using the same telecommunications tool. "So perhaps there is something in it to say, well, what if there is a global cyber attack? What if there is some sort of event that brings systems down? "How long can I survive? If I have cash, I'd expect people to still be able to accept that. "It's also the general logic about why people might hold a bit of gold." Having come through a pandemic, Australians were also only too aware of how easily social and economic structures could disintegrate when desperation kicked in, Grant said. "We've seen people get into fights at the supermarket over toilet paper. We're not that far away from becoming uncivilised, I suppose." Grant agreed with the RBA's assessment that society was essentially being split into two definitive groups - those who held cash and those who didn't. "There's basically a polarisation, almost, where people are either very pro-cash or pretty anti-cash," Grant said. "A lot of Gen Z and younger people generally don't like to even carry a wallet. They want to transact with their phone and carrying a wallet makes you old, and it's a sign that you're not with it." However, it was clear there was still a utilitarian role of cash for a lot of people, particularly those in the older demographics who were often more vulnerable, he said. money Cashless Society Australia national finance banks CONTACT US
Yahoo
07-05-2025
- Business
- Yahoo
Glaring $3,750 figure that proves Australia's cashless society is already here
There's more cash around than there ever has been - but it's not because Australians are choosing physical currency for transactions. · Supplied/Getty Some have accused banks of "spreading misinformation" about the state of cash in Australia. But the reality is, we already live in a cashless society. Cash advocacy group Cash Welcome, which is partially funded by the ATM industry, directly challenged comments recently made by Australian Banking Association (ABA) CEO Anna Bligh. The group accused her of promoting the "myth" that Australians are willingly abandoning cash. "We are, as Australians, using less and less and less cash," Bligh said. RELATED "In 2007, about 70 per cent of everything we paid for was with real cash. "These days, it's about 10 per cent, and the Reserve Bank estimates it will fall to around 4 per cent by 2030." However, Cash Welcome disputes these figures. They highlight that current Reserve Bank of Australia (RBA) data shows 16 per cent of in-person transactions still use cash, with no publicly available statistics backing the 10 per cent figure cited by Bligh. To strengthen their argument, Cash Welcome make two points: The total value of cash in circulation continues to rise, not fall. Contrary to popular belief, ATM usage is not in sharp decline. But is the push towards a cashless society genuinely stalling, or are these figures being selectively used? Let's unpack the data. There has never been more cash circulating around Australia, despite its declining use in transactions. · Cash Welcome Firstly, Bligh is correct that the RBA's projection is that cash transactions will fall to just 4 per cent by 2030. Interestingly, both the ABA and Cash Welcome agree that despite fewer transactions, there has never been more cash physically circulating in Australia. Why is there more cash around if Australians aren't using it? The RBA provided insight into the increase in physical currency in a 2021 paper. "The increase in banknotes in circulation against the backdrop of declining transactional cash use can be attributed to the growing role of cash for precautionary and store-of-wealth purposes," the RBA wrote. Essentially, people aren't spending this cash; they're saving or "hoarding" it. In fact, nearly 73 per cent of current banknotes by number and a staggering 94 per cent by value are $50 and $100 denominations, indicating their use as a store of wealth rather than for everyday spending. Australian Banking Association CEO Anna Bligh has warned that bank branches have to adapt to the changing nature of banking. (Source: Getty) Yet, when adjusted for Australia's growing population, the narrative shifts slightly.
News.com.au
02-05-2025
- Business
- News.com.au
Nationwide cashless protest flops early figures show
A nationwide protest calling for Aussies to withdraw large sums of cash and stand up against Australia's shift towards a cashless society, didn't quite make the impact it had hoped, early figures suggest. Two million Aussies were expected to withdraw cash from banks and ATMs on Tuesday April 22 – a day dubbed Cash Out Day – to send a clear message there is still a demand for cash. 'Cash Out Day is our chance to show the banks and politicians that Australians expect to be able to access and use cash,' Jason Bryce, founder of Cash Welcome, told 7News last week. 'Physical cash is our legal tender, banks need to give us access to our cash and all retailers must accept cash.' However, understands preliminary figures from three of the four major banks show that cash withdrawals on Tuesday April 22 were 20 to 30 per cent lower than Tuesday the week prior. Withdrawals were also lower than those recorded on Tuesday April 2, 2024 – the date of last year's Cash Out Day protest. Ms Bryce said last year's Cash Out Day was a 'major success', claiming there was a $500 million jump in the value of banknotes on issue on and around April 2, 2024. In a petition promoting this year's protest, he wrote ATM companies and banks noticed 'a big spike in the numbers of withdrawals' during last year's event. 'They got the message that millions of Australians do NOT want cash to disappear.' The Australian Banking Association (ABA) said last year there was 'no material difference in withdrawals of cash' on April 2. 'Whilst Australians are using less and less cash, we are not going to be cashless,' an ABA spokesperson said at the time. Speaking to Mr Bryce said the recent passing of Pope Francis may have impacted awareness of this year's protest. 'Cash Out Day this year was overshadowed by the sad news of the death of Pope Francis, I had many interviews bumped on the morning so that was possibly a factor,' he told Mr Bryce also suggested the government's cash mandate – which is set to come into effect in 2026 and will require businesses to accept cash for 'essential items'- could have impacted the protest. '97 per cent of Australians support a government cash mandate, which was announced after last year's Cash-Out Day, so the same urgency about this issue is not around this year,' he said. The incoming cash mandate will likely apply to supermarkets, pharmacies, dentists, GPs, hardware stores, insurers, pet stores, vets, service stations and mechanics. Speaking about the mandate in December, Assistant Treasurer Stephen Jones said cash was a 'lifeline' for many Australians. 'Mandating cash for essential purchases means those who rely on cash will not be left behind,' he said. While this year's Cash Out Day protest didn't exactly have its desired effect, Mr Bryce is continuing to push for Australians to have access to cash. 'What the government decides in 2025 is going to be the way we pay for things for a long time,' he said. 'The banks must accept their responsibility for paying for cash distribution and retailers simply need accept cash. The system only works efficiently when cash is circulating. Notes in pockets and change in tills makes the economy goes round.' 'Australians using less and less cash' Statistics from the Reserve Bank of Australia (RBA) show that in 2010 more than 60 per cent of purchases were made with cash compared to just 13 per cent in 2022. By 2030, cash usage is projected to drop to just four per cent, ABA reports. 'We are, as Australian(s) using less and less and less cash,' ABA chief executive Anna Bligh told 2GB last week. Ms Bligh added the predicted drop in cash use by 2030 has 'massive implications for what our branches are doing'. 'If people aren't coming in anymore to withdraw or deposit cash, then that really changes you know what a branch is and what it might look like in the future.' About 36 per cent of bank branches in regional Australia have closed since 2017. The Big Four banks earlier this year agreed not to close any more regional branches until at least 2027 under an agreement with the government. 'Part of the reason for that is to sit down with the Government, with Australia Post and to think that what is it that people still need face-to-face services for? Because increasingly, it's not cash,' said.
Daily Mail
22-04-2025
- Business
- Daily Mail
Huge move to drain cash from every ATM in Australia: 'People power works'
Two million Australians are expected to withdraw money from an ATM today in a bid to prevent the country from becoming a cashless society. The initiative, known as 'Cash Out Day', is led by Jason Bryce from advocacy group Cash Welcome and demands hard cash remain a viable payment option. The first Cash Out Day was held last year, which Mr Bryce claimed sent a strong message to banks, leading many to commit to keeping branches open. The protest was also followed by a government commitment to a cash mandate, set to take effect in January 2026. Businesses will be required to accept cash when they sell essential items like groceries and fuel. 'People power works. We took a stand and showed how much popular support cash enjoys - and the politicians and banks responded,' Mr Bryce said. 'The cash mandate will allow 97 per cent of retailers to go cashless.' He suggested the cash mandate should be extended to all retailers, not just those selling 'essential' goods and services. Mr Bryce expects two million Australians will visit an ATM on Tuesday to withdraw money. Last Cash Out Day, Cash Welcome estimated around 1.6 million people withdrew cash, totaling around $500million. Cash use in Australia has steadily declined over the past decade, a trend that accelerated sharply following the Covid-19 pandemic. According to Reserve Bank data, the number of in-person cash transactions halved between 2019 and 2022. In 2019, cash accounted for around 32 per cent of transactions, but by 2022, that figure had dropped to just 16 per cent. Currently, cash makes up about 10 per cent of all transactions, with projections suggesting it could fall to just 7 per cent by 2030. Meanwhile, debit and credit card payments have remained strong, with debit card usage increasing over the same period. Reserve Bank Governor Michele Bullock has previously commented on the future of cash in Australia. Between 2017 and 2023, 37 per cent of all bank branches across Australia were closed. In February, she predicted cash would likely remain in use for 'probably another 10 years' and urged policymakers to 'develop a sustainable system for distributing cash as usage continues to decline.' Bank branches and ATMs have also seen a sharp decline, with 37 per cent of all bank branches closing between 2017 and 2023, with 59 per cent of ATMs shutting in the same time period. Mr Bryce started a petition calling on the government to introduce an Australian cash and banking guarantee, which has gained over 200,000 signatures. The petition calls for 'all Australians [to] have reasonable local access to cash and full banking services,' and insists that 'all Australians must be able to choose cash when paying for food and essentials at physical retailers.' 'Millions of Australian consumers and businesses trust and rely on cash for their everyday needs and for budgeting purposes,' the petition argues. 'Even Australians that don't attend banks or use cash regularly need access to face-to-face banking services and physical money sometimes,' it adds. Cash Welcome and the Australian Banking Association were approached by Daily Mail Australia for comment.
Yahoo
11-02-2025
- Business
- Yahoo
200k Aussies rail against cashless society
Cash use across Australia has soared over the past few months, with a major cash awareness campaign calling on banks to back an 'easily available means of payment' amid rampant closures. More than 200,000 Australians have signed a Cash Welcome petition calling for guarantees for 'reasonable local access' to cash and banking services. The aim of the campaign is to push back against a cashless society, with millions of Aussies still requiring cash. Reserve Bank data shows $103.7bn in Australian banknotes circulating, an increase of $3bn since October 2024. Cash Welcome campaign founder Jason Bryce said the campaign had so far been successful but there was more work to be done to keep cash going in Australia. 'I encourage everyone to make a submission to the government's consultation about cash (by the 14th of February) because we have made them sit up and take notice. Now is the time to ensure they follow through and deliver,' Mr Bryce said. 'What happens in 2025 will set the scene for how we buy and sell in Australia for the next 30 years at least. Only cash is private, reliable, inclusive and surcharge-free at the point of sale. Banks have an obligation to ensure we can access our money as cash in our own communities.' The petition has surpassed 200,000 signatures on the same day as the federal government has shored up bush cash services. As part of the announcement, the major banks will hold a moratorium on regional branch closures until July 2027 and increase funding for Bank@Post operations, which have picked up a lot of the slack as regional banks close. Licensed Post Office Group executive director Angela Cramp told NewsWire that people were using digital services to pay for big-ticket items but noted a spike in cash operations out of the postal service. 'Cash is necessary and our problem is the banks do not want to afford a branch with a lot of downtime, so post offices are an excellent solution,' she said. 'It's a tricky one, as it's why banks are leaving. They've encouraged everyone to go online and they've made their services easier online, but you can't get $50 out of your phone no matter how clever you are.' Ms Cramp said there was still a place in cash for regional and remote communities, with Tuesday's announcement a step towards supporting these areas. 'We are finding an increased amount of people coming to the post office for their walking-around money. They are looking for $200 so they can buy their coffee instead of their phones. There's certainly an increasing use for cash, it's coming back,' Ms Cramp said. From January 1, 2026, businesses selling essential products, including fuel, medicines and groceries, will legally be required to accept cash payments.
