Cash Usage in Australia: Survey Insights, Fee Changes and Evolving Payment Preferences

As digital payments continue to reshape how Australians shop and budget, the Reserve Bank of Australia (RBA) has released preliminary findings from its 2025 Consumer Payments Survey.

Survey Findings: Up-to-Date Insights and Generational Shifts

The 2025 Consumer Payments Survey, based on data collected between September and November 2024, polled more than 8,000 Australians across metropolitan and regional areas. The RBA’s research team used a combination of phone interviews and online questionnaires to ensure a representative spread of ages, incomes and backgrounds. Dr. Lisa McGregor, lead survey analyst at the RBA, explains: “We wanted to capture how real people are navigating payment choices in the current economic climate, especially with new technologies and changes to transaction costs on the horizon.”

For the first time in over twenty years, cash usage saw a notable increase—up by 7% across all age groups. Older Australians (65 and over) reported the largest jump, with 68% saying they regularly carry cash. Meanwhile, younger adults (18–29) also showed an uptick, with 35% keeping cash on hand for everyday purchases. “I use cash for the local markets and the footy club canteen—it’s just simpler when you’re out and about in the regions,” says Tom, a Shepparton resident. On average, most Australians continue to keep at least $50 in their wallets, using cash mainly for smaller buys at local shops or fresh food stalls.

Why Cash Still Matters: Voices from All Corners

Despite the digital wave, many Australians see cash as a practical tool. It’s not just about tradition—cash is often a lifeline during emergencies, especially when bushfires, floods or network outages can cut off card services. “Last summer, a storm knocked out the internet for a week. Cash kept our servo running and made sure the community wasn’t left stranded,” recalls Leah, who manages a petrol station near Lismore.

For others, cash supports budgeting and transparency. “Paying with cash helps me stick to my weekly spending limit and avoid surprise fees,” says Karen from Sydney. Tech-savvy Melburnian Jack adds, “Even though I use my phone for most things, I like to keep a fifty in my wallet for just-in-case moments. It’s about having options.”

The Eptos Fee Shake-Up: Why It’s Happening and What to Expect

One of the biggest changes on the horizon is the elimination of eptos fees from October 2025—a major move prompted by the RBA’s push to reduce costs for small businesses and encourage fairer competition in the payments space. Historically, banks have charged merchants a percentage of every card transaction, with rates ranging from 1% to as high as 10%, depending on the provider and card type. This has hit small businesses hard. “We had to add a 2% card surcharge just to cover bank fees. It’s not ideal, but it keeps us afloat,” shares Michael, a bakery owner in Melbourne.

Dr. McGregor notes, “The removal of eptos fees is designed to level the playing field, making card payments more affordable for merchants and, ultimately, for shoppers. We expect this to reduce the need for surcharges and open up more payment choice, especially in regional areas and for smaller retailers.”

Small businesses are hopeful but cautious. “Card fees have been a headache for years. If they go, I’ll definitely encourage more card payments—less cash counting and safer for staff,” says Rita, who runs a newsagency in Dubbo. On the consumer side, the change is generally welcomed. “I’m all for ditching card surcharges. It makes it easier to grab a coffee or a snack without worrying about extra costs,” says Sarah, a university student in Brisbane who rarely carries cash.

Looking Forward: Payment Preferences and the Road Ahead

With eptos fees set to disappear and ongoing improvements to payment infrastructure, experts predict a gradual but steady shift toward digital payments. However, the RBA survey suggests cash will remain a valued option—especially for budgeting, emergencies and in areas where digital access is patchy. “Cash isn’t going the way of the cheque just yet,” says Dr. McGregor. “But it’s unlikely to return as the main way Aussies pay, particularly with younger generations embracing mobile wallets and contactless cards.”

For many, it’s about having choices. “I prefer cash for small purchases—it’s quicker and keeps me on budget,” shares Emma, a Brisbane student. In contrast, Sam, a Perth retailer, observes, “Most of my customers use cards now—it’s convenient, and soon it’ll be cheaper for us, too.”

As Australia heads into a future with fewer fees and more digital options, cash remains part of the mix—but the convenience and cost benefits of cards are likely to see them continue their rise. For business owners and consumers alike, understanding these changes will be key to navigating the evolving payments landscape.