Over the past six years, mobile wallet usage in Australia has surged 23-fold according to data from the Australian Banking Association. This expansion into digital payments has led to a significant transformation, with online banking becoming increasingly prevalent.

Bank Branches and ATMs

During this period, the number of bank branches halved between 2011 and 2024, alongside a reduction in bank-owned fee-free automated teller machines (ATMs).

Cash-Reliant Australians

Around 1.5 million people in Australia still predominantly use cash for their transactions, making up about 80% of their financial activities. Many within this group include older adults, rural inhabitants, and individuals with disabilities, potentially facing increasing exclusion from the digital economy.

The U.S. Perspective

A similar issue is being observed in the United States, where nearly 4.5% of households do not have access to traditional banking services and rely heavily on cash. In response, a bipartisan effort known as the Payment Choice Act has been introduced, aimed at preserving cash usage.

Key Provisions

This legislation would require businesses accepting in-person payments within brick-and-mortar locations to accept cash for transactions up to $500 and prohibit retailers from charging higher prices to customers who pay with cash. The sponsors assert that the U.S. dollar should be accepted by all businesses, given its status as legal tender.

Ohio’s Approach

In Ohio, a similar law has been proposed, mandating merchants to accept up to $500 in cash. However, this bill includes provisions designed to alleviate the burden on businesses, such as permitting them to use only one payment terminal register for cash transactions.

Australia’s Measures

Australia is implementing its own regulations, which mandate that essential service providers accept cash starting January 1, 2026. Small businesses are exempt from this requirement. However, enforcement can be challenging if merchants choose to ignore these rules.

Potential Further Actions

To address these challenges, Australia is considering additional measures such as categorizing banking as an essential service to ensure more physical banking options or establishing a publicly owned bank to serve the unbanked population.