Why anxious Australians are putting cash back in their wallets

Australians are back putting cash into their wallets and pockets with the first turnaround in the use of money in almost two decades.

Research released on Monday by the Reserve Bank suggests the public campaign by defenders of cash use, on top of breakdowns of the electronic payment system over recent years, has turned around the use of banknotes.

The bank, which produces the nation’s notes, regularly tracks cash in the economy. Between 2007 and 2022, the use of cash fell from 69 per cent of transactions to just 13.3 per cent.

But between 2022 and 2025, it increased to 15 per cent of transactions. It was the first time since the advent of electronic payments that there was a lift in cash usage. Around half of Australians used cash in a typical week.

Bank researchers Kieran MacGibbon, Michelle Royters and Faye Wang said it appeared that cash use had stabilised after a sharp downward trend.

“Half of Australians use cash in a typical week and one-third would face hardship or major inconvenience if cash were to become difficult to access,” they found.

“Over three-quarters of Australians hold some cash in their wallet, which could cover payments if electronic payment methods were unavailable for a short time.”

Of the people who use cash, about 1.5 million rely on it to make payments. These so-called “high cash users”, who use notes for at least 80 per cent of their transactions, made up 7 per cent of the total population, which is unchanged from 2022.

Older Australians, people in rural and regional areas and low-income earners are the most likely to use cash.

Almost 64 per cent of people aged between 18 and 29 don’t use cash at all, while just 1.9 per cent qualify as “high cash users”. But just 30 per cent of people aged at least 65 don’t use cash.

Across the entire population, just under half don’t use cash. In 2022, the proportion was 53 per cent.

Since the last RBA survey, there have been several instances of the electronic payment system going down. Most recently, thousands of Westpac customers were affected in December after a problem with their network.

Natural disasters have also forced many people to use cash after electronic systems have been hit by either floods or fires.

The research found 28.5 per cent of people said they held cash for unexpected purchases or emergencies, while another 16.2 per cent did so because they believed electronic payments were unreliable.

“Many Australians view cash as an important backup payment method, and hold cash for contingency purposes in their wallets and at home,” the researcher said.

“Outside of making payments, the most common reasons respondents cited for holding cash were for unexpected transactions and because of concerns about the reliability of electronic payment methods.”

Over the past three years, the Reserve Bank and major cash providers have struggled to move cash around the country. The cost of moving cash has grown due to the drop in demand for its use.

The researchers said this issue was affecting some Australians.

“Maintaining reasonable access to withdrawal and deposit services is important for Australians who want or need to use cash, but the 2025 results suggest that accessing cash has become less convenient than it was three years ago,” the researchers found.

Australians continue to hold cash for a range of non-payment reasons. A third said their local merchants only accepted cash, 15 per cent said they use cash to help them budget, 14 per cent use it to make payments to family and friends, while 2 per cent said they got paid in cash.

Just 1 per cent said they didn’t trust banks, with a similar proportion saying they were not confident using electronic payment systems.

There has been a drop in the number of people with no cash in their wallets, falling from 29 per cent to 22 per cent. The most common amount of cash held is at least $50, with 42 per cent of people holding that amount.

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