Mobile wallet payments in Australia have grown 23-fold over the past six years, according to the Australian Banking Association. During this digital transformation, concerns have emerged that a significant portion of the population may be left behind.
Alongside the rise of digital wallets, online banking has become the norm in Australia. As a result, the number of bank branches fell by roughly half between 2011 and 2024, and many bank-owned, fee-free ATMs have disappeared.
However, around 1.5 million Australians still rely on cash for around 80% of their transactions. Many in this group are older adults, rural residents, or people with disabilities—raising concerns that these vulnerable populations are increasingly cut off from the digital economy.
Keeping Cash in Play
This type of exclusion is not unique to Australia. In the U.S., approximately 4.5% of households lack access to banking services and continue to rely heavily on cash. This reality prompted the introduction of the Payment Choice Act, a bipartisan legislative effort to keep cash in circulation.
The federal law would require businesses that accept in-person payments at brick-and-mortar locations to accept cash for transactions up to $500. Additionally, retailers would be prohibited from charging cash-paying customers higher prices.
Beyond these stipulations, the bill’s sponsors asserted that the U.S. dollar is the nation’s legal tender, and all U.S. businesses should accept it.
Taking It a Step Further
A similar law was proposed at the state level in Ohio, including a mandate that merchants accept up to $500 in cash. However, Ohio’s version includes provisions designed to allay the burdens of accepting cash on businesses, such as allowing each store to maintain just one payment terminal register for cash transactions.
Australia is rolling out its own regulations, mandating that all essential service providers accept cash starting January 1, 2026, although small businesses are exempt from this requirement. While these mandates aim to protect consumers, they can be difficult to enforce if a merchant deigns to ignore them.
This is partly why Australia has considered taking further measures. For example, it has been suggested that the federal government could categorize banking as an essential service to ensure more physical banking options, or even establish a publicly owned bank to serve the unbanked population.
