As you can see, 2025’s figure of 50 per cent is much lower than the 97 per cent in 2007.<\/p>\n
But it’s slightly higher than 2022’s figure of 47 per cent.<\/p>\n
Will we move back to cash?<\/p>\n
John Hawkins, a senior economic lecturer at the University of Canberra, doesn’t expect cash use to skyrocket.<\/p>\n
“From January the government has required most grocery stores and petrol stations to accept cash<\/a>, which may see some modest increase in its use,” Dr Hawkins says.<\/p>\n “On the other hand, about 20 per cent of consumers say they used cash to avoid card surcharges.<\/p>\n “As these no longer apply we could see some drop in cash use.”<\/p>\n Loading…<\/p>\n Angel Zhong, a finance professor at RMIT, says she would be surprised if the surcharge ban reverses the long-term trend of card payments.<\/p>\n “I expect a modest uptick [in cash use] mostly at the margins: the caf\u00e9, the barber or the tradie offering a few per cent off for cash,” Professor Zhong says.<\/p>\n “Australians moved to cards and mobile wallets mainly because of convenience, speed and record keeping, not because of price.<\/p>\n “A small discount at a handful of businesses is unlikely to change entrenched habits for most people.”<\/p>\n Government backs down on ATO credit card ban<\/a><\/p>\n The federal government will temporarily cover credit card surcharges after businesses warned that losing the payment option would put them under pressure.<\/p>\n Data from the RBA’s 2025 survey showed people aged 65 and older were the most likely to use cash.<\/p>\n Cash might also still be preferred by people in regional areas with limited bank access or poor internet signal, people managing tight budgets, and people who have privacy concerns.<\/p>\n Professor Zhong says the goal should be to continue offering people the choice of using cash or paying by card.<\/p>\n Why would caf\u00e9s offer cash discounts?<\/p>\n Professor Zhong sees cash discounts as a sign of how much pressure small businesses are under.<\/p>\n “The RBA paired the ban with a cut to interchange fees, which was meant to soften the blow by lowering what businesses pay to accept cards,” she says.<\/p>\n “But interchange is only one part of the cost.<\/p>\n “Small businesses typically pay their payment service provider a bundled rate, and there’s no guarantee that the interchange savings flow through to that rate.”<\/p>\n Card payments are much more common than they were in 2007.\u00a0 (AAP: Dan Peled)<\/p>\n While big businesses could leverage their bargaining power to negotiate savings in their contracts, smaller businesses don’t have that option.<\/p>\n And that means losing the ability to surcharge while missing out on a drop in costs.<\/p>\n “Against thin margins and rising operating costs, offering a discount for cash is one of the few ways a small business can steer customers toward a cheaper payment method,” Professor Zhong says.<\/p>\n Are cash discounts legal?<\/p>\n Yes.<\/p>\n The Australian Competition and Consumer Commission (ACCC) says businesses can offer discounts to customers paying via particular means such as cash or PayID<\/a>, but there are a few rules.<\/p>\n![\"A](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/10\/105780f655a356e892842a6e385f9bf9.jpeg\")
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