In 2022, despite concerns about a “cashless society”, recent data from the Reserve Bank of Australia (RBA) suggested that cash withdrawals are on the rise in the country. The total value of cash in circulation has reached a record high of nearly $103 billion. This counters the notion of a cashless society, with experts stating that cash usage in Australia was recovering. The value of banknotes in circulation has seen significant growth in recent years, surpassing the average annual growth of the past decade.
During the pandemic, many businesses moved to accepting card-only payments. This reduced the number of surfaces the coronavirus could spread through, with some organizations touting “contactless payment” as a business drawcard.
The spokesperson for the Cash Welcome.org industry campaign Jason Bryce also pointed out there was a clear pushback against high card surcharges, a lack of privacy and reliability as well as a struggle to budget efficiently by making purchases through a phone.
“Over the last three months, monthly cash withdrawals are up almost five million per month, despite the impact of the Omicron wave and restrictions in the biggest states,” he said.
Australian ATM’s closing
Now in 2023, despite all the assurances, ANZ Bank in Victoria has made changes to its branch operations by discontinuing over-the-counter cash transactions at certain branches. Instead, customers can still make cash and check deposits, as well as cash withdrawals, through smart ATMs and coin deposit machines. This move is in response to the changing banking preferences of customers, with a significant decline in in-branch transactions and the majority opting for online and mobile banking. ANZ staff at these branches will now focus on assisting customers with more complex banking needs.ANZ has made changes to some of its branches, where cash transactions are no longer handled at the counter. Customers can still make cash and check deposits, as well as withdrawals, through ATMs and coin deposit machines. The bank states that this shift is in response to changing customer behavior, with a significant decrease in in-branch transactions over the years. ANZ emphasizes that most customers prefer online and mobile banking methods, and visit branches for more complex financial discussions and decisions.
People in Australia are increasingly moving away from using cash and opting for digital payments. ANZ, a bank in Australia, conducted a study and found that consumers find physical payments to be inconvenient compared to digital and contactless options. This change in mindset is driven by the convenience of digital transactions. ANZ has also implemented smart ATMs in some branch locations, allowing customers to continue making cash withdrawals.
Swinburne University technology professor Steve Worthington dubbed the future-forward move as exclusionary (7News).
