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Reserve Bank of Australia Survey Reports Stabilization and Slight Increase in Cash Use in 2025

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Cash Use in Australia Stabilises After Long Decline, RBA Survey Finds

A 2025 survey by the Reserve Bank of Australia (RBA) indicates that the long-term decline in cash use for consumer payments has stabilised, with a slight increase recorded from 2022 levels.

The survey found that approximately 15 percent of in-person transactions were made with cash in 2025, marking a halt to the previous sharp decline. The RBA notes that cash remains a significant payment method for certain demographic groups and for small-value transactions.

Key Survey Findings and Trends

The RBA's Consumer Payments Survey shows cash was used for about 15 percent of consumer payments in 2025. This represented a stabilisation and small increase from 2022, when cash use had reached its lowest point after falling by roughly half since 2019.

  • In 2007, more than two-thirds of transactions were made with cash.
  • Cash now accounts for an estimated 8 percent of the total value of all payments.
  • The small rise coincided with an increase in the share of in-person transactions, which rose from 16 percent in 2022 to 19 percent in 2025.

Usage Patterns and Demographics

Cash use is most common for low-value transactions and among specific demographic groups.

  • About a quarter of transactions under $10 were paid in cash in 2025. This is a fraction of the volume from two decades ago, when 95 percent of sub-$10 transactions used cash.
  • Approximately half of Australians use cash in a typical week.
  • Around 7 percent of the population, or an estimated 1.5 million people, are classified as "high cash users," using cash for more than 80 percent of their transactions. This group tends to be older, have lower incomes, and is more likely to live in regional areas.
  • About 10 percent of respondents aged over 65 used cash for all their transactions in 2025.
  • The share of respondents who did not use cash during the survey week was around 50 percent. However, when asked about use outside the survey period, only 13 percent said they never used cash.

Spending Categories and Reasons for Use

Cash use stabilised or increased across all consumer spending categories from 2022 to 2025. Leisure spending became the top category for cash use, ahead of food, retail, and transport.

  • Transport saw the largest decline in cash use since 2007, which the report links to contactless payments, ride-share services, and digital public transport systems.
  • Common reasons cited for using cash include transacting with sellers who only accept cash, simplifying budgeting, giving money to others, and having security or privacy concerns.
  • About one-third of respondents said they would face major inconvenience or hardship if unable to use cash.
  • About 20 percent of respondents said they used cash to avoid merchant surcharges on card payments.

Cash Holding and Emergency Preparedness

A majority of Australians continue to hold physical cash.

  • Three-quarters of those surveyed carried cash in their wallets in 2025, with a median amount of $65.
  • The most common reason for holding cash, stated by two in five respondents, was concern about the reliability of electronic payment systems during an outage or emergency.

Policy, Access, and Infrastructure

Several policy and market developments relate to cash access and acceptance.

  • In January 2026, a federal government mandate took effect requiring most grocery stores and petrol stations to accept cash. Prior to this policy, about 94 percent of businesses accepted cash.
  • Access to cash is affected by a decline in bank branches and ATMs. The number of ATMs has fallen from a peak of over 30,000 to under 25,000.
  • Australia has one major cash distribution company, Armaguard.
  • In the previous year, the Australian Competition and Consumer Commission allowed members of the Australian Banking Association to collaborate on contingency plans for cash distribution, should it become necessary, with a deadline of December 2026 to develop a solution.

International and Broader Context

  • Data from the Bank for International Settlements shows cash in circulation in Australia is equivalent to about 4 percent of annual GDP, a level similar to Canada and the United Kingdom.
  • The RBA report notes that other countries have also experienced a recent flattening in the decline of cash use.
  • The report states that cash remains integral for some vulnerable communities and those with limited access to digital services, including some people in remote and First Nations communities.
  • The RBA also noted that people conducting illegal transactions are likely to be higher cash users, a factor that may be understated in the survey. There are approximately $50 billion worth of $100 banknotes in circulation.