Why physical cash is making a huge comeback for Aussie budgets

Cash provides certainty and confidence to many people wanting to stay in control of their budget, according to Chris Grice, chief executive of National Seniors Australia.

"People like to know that what they've got in their personal wallet is their spending limit," Mr Grice told The Senior.

"There is a cohort of older folk who are not confident with digital transactions and they prefer that security and confidence that cash brings," Mr Grice said.

Responsible lending laws also prevent retired Australians from accessing credit cards, making cash a preferred option for many.

The new findings from the Reserve Bank reveal cash is "definitely still relevant and appropriate in terms of how people want to pay for things," said Mr Grice.

The not-for-profit has been advocating to keep cash available for the past three years, arguing a shift to a cashless economy could isolate people over 65 who prefer using physical money.

"We've been motivating older Australians and encouraging them to use cash at every opportunity and we're now seeing that translate into an uptick in terms of cash usage."

The number of cash transactions rose slightly to 15 per cent in 2025, after falling considerably from 69 per cent in 2007 when the Reserve Bank of Australia began surveying consumers.

The decline over the last 19 years is largely due to card payments and electronic transfers becoming more popular, a trend the RBA says has now stabilised.

The overall number of in-person cash payments was also on the rise, with 19 per cent of transactions happening in cash in 2025, compared to 15 per cent in 2022.

Being able to access cash is still important to many Australians, with the RBA finding one-third of all consumers would "face hardship or major inconvenience if they could not withdraw cash."

This inconvenience was more acute for people who used cash more often, with 70 per cent saying they would struggle without it.

Cash is also important for those who only make withdrawals every now and then, with about 25 per cent saying they would struggle if they had nowhere to take out money.

Cash users mostly favoured cash when shopping in locations where cards are not accepted, but also said it is useful for budgeting, and a better option when paying back family or friends, and important for their security and privacy.

The RBA has been holding the Consumer Payments Survey every three years since 2007, recording how shoppers are paying for goods. The most recent surveyed looked at the purchasing habits of 1200 people over seven days.

"Australians across all demographic groups continue to use cash to make their everyday payments," the 2025 report states. "High cash users are somewhat more likely to be older and have lower household incomes."

Mr Grice said cash was also an important part of any resilient economy.

"In emergency situations and during outages, when electronic systems crash, cash plays a vital role," he said.

"In these times of global uncertainty, it also provides security."

The findings may have also been influenced by new regulations mandating all petrol stations and supermarkets to accept cash for the majority of the day.

An annual campaign encouraging people to withdraw cash is also just around the corner, with a grassroots organisation calling for mass cash withdrawals on Tuesday, April 28.

Jason Bryce from Keep Cash is hoping two million Australians will visit the ATM, doubling the average number of daily withdrawals.

"We have a right to access and use our legal tender," Mr Bryce told 10 News+.

While he was heartened to see cash usage on the rise, there had been an overall decline in places to access, and use cash.

"Banks are squeezing our access to cash and the number of retailers who accept cash is also on the decline," he said.

"It's a trust issue. Australians must be able to withdraw cash from their banks in order to trust their banks."