Millions of Australian consumers were expected to withdraw from ATMs yesterday as part of Cash Out Day, an event designed to keep cash relevant in an increasingly digital world.
The movement has gained significant support across Australia and has even been credited with spur the passage of the nation’s recent cash mandate. As of the start of the year, major retailers and convenience stores are required to accept cash for most purchases under $500.
However, the Cash Out Day campaign is not resting on its laurels. Organizers hope to double the average daily volume of ATM withdrawals in a single day, sending a clear message to financial institutions that cash is still critical for many segments of the population.
For example, data from the Reserve Bank of Australia (RBA) found that about half of Australians use cash at least once per week, with older and lower-income consumers among the most frequent users. The RBA also warned that reduced access to cash could have negative consequences for roughly a third of the nation’s population.
The Cash Uptick
While the efficiency of digital payments and the widespread adoption of smartphones have led many experts to predict the decline of cash, the RBA found that around 15% of last year’s transactions were conducted using cash—a 2% increase from two years earlier.
Australia is not alone in maintaining a strong preference for cash. Countries such as Switzerland have long been cash strongholds. According to the Swiss National Bank, that trend remains intact: mobile payments declined by approximately 1% last year, while cash and debit card usage held steady.
Both Sides of the Debate
There has, however, been pushback against cash mandates in other regions. For instance, an alliance of merchants and wholesalers in the European Union has opposed a proposed law requiring businesses to accept cash. The crux of their argument is that handling cash securely imposes significant time and cost burdens on retailers.
It is worth noting that these merchants oppose a mandate—not consumers’ continued access to cash. Meanwhile, Cash Out Day organizers emphasize that they support digital payments, provided cash remains a viable alternative.
