A cashless society worries most Australians, who also have concerns about the exploitation and marginalization in some communities, a new study shows.
Withdrawals of physical money are increasing despite the widespread closure of bank branches and automated teller machines (ATMs). This seems to indicate that the pro-cash campaign is resisting the growing tide of digital alternatives.
Most Australians Are Worried About the Future of Cash
According to 7News, research from payment processing firm Waave shows that two in five people, or 41%, are "extremely concerned" about the future of cash.
Major concerns among the 1,080 Australians polled last month included a lack of faith in financial institutions and services, the widening income gap, and the prospect of increased fees.
"The equivalent of 5.7 million Australians (29 per cent of respondents) don't trust payment methods that are not exclusively between the customer and the merchant," Waave wrote in the analysis. "Two-fifths (42 per cent) of Australians admit they don't trust financial services to operate ethically in a cashless society."
Additionally, 63% of those who took the survey expressed concern that eliminating cash would only widen poverty gaps. In 2017, there were 13,814 ATMs in Australia.
By 2023, that number had dropped to 5,693, according to The Australian Prudential Regulation Authority (APRA). On the other hand, information from the Reserve Bank of Australia (RBA) indicates that the withdrawal rate is growing.
A record-breaking 30.2 million people used ATMs in January 2024, with a total value of over $9 billion-the biggest total since July 2020. 7News reported that an internet movement advocating for the continued use of cash is driving this spike in ATM utilization.
Some May Not Be Confident About the Digital Payment System
Waave CEO and co-founder Ben Zyl said that other practices cropping up among younger groups online, such as cash stuffing and noisy budgeting, align with the latest results.
Concerns about who is looking out for their best interests are understandable. Zyl noted that the present digital payment system was not designed to prioritize user control or security.
"People are getting their details stolen, fumbling around with passwords, and paying ridiculous card fees and surcharges. There's a lot of fear, particularly among those who can't access alternatives or aren't confident using technology," Zyl explained.
A third of Australians worry about "losing control" when they make digital purchases, with 34% among Gen Zs and 35% among Baby Boomers.
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