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Australia's cashless push: Small businesses caught in the crossfire
Australia has emerged as one of the global leaders in adopting tap-and-go payment methods, yet the rapid shift towards a cashless society is presenting significant challenges for small businesses and their customers. While digital transactions are becoming the norm, millions of Australians, including older shoppers, regional communities, and lower-income households, still rely on cash for their everyday needs.
Australia's cashless push: Small businesses caught in the crossfire
Australia has emerged as one of the global leaders in adopting tap-and-go payment methods, yet the rapid shift towards a cashless society is presenting significant challenges for small businesses and their customers. While digital transactions are becoming the norm, millions of Australians, including older shoppers, regional communities, and lower-income households, still rely on cash for their everyday needs.
In 2014, cash accounted for 67% of point-of-sale transactions. That figure has plummeted to just 14% today, according to Worldpay's Global Payments Report 2025. The report forecasts a further decline, projecting cash usage to shrink to 9% by 2030. Despite these trends, the debate over a cashless Australia is far from settled.
Alison Morris, Senior Vice President and General Manager of Worldpay for Platforms, emphasises that the real challenge for small and medium-sized businesses (SMBs) is not about choosing between cash or contactless payments, but rather maintaining payment choice. "The reality is that neither option is cost-free," Morris explains. "Cash comes with bank deposit fees, staff handling time, and security risks. Digital payments carry card surcharges and rising technology costs."
For many small businesses, the costs associated with digital payments are a pressing concern. Card surcharges and the need to invest in technology to facilitate these transactions can eat into already thin profit margins. This has led some Australian cafés and retailers to innovate by offering cash discounts as a way to reward customer loyalty while simultaneously reducing payment processing overheads.
Morris argues that the narrative of a "cashless Australia" is more myth than reality. "The push for a cashless society risks leaving small businesses and their customers behind," she notes. The sentiment is echoed by many business owners who feel caught in the crossfire between evolving consumer preferences and the practicalities of running a business.
One café owner in Melbourne shared their perspective, stating, "We've seen a lot of our customers still prefer to pay with cash, especially the older ones. Offering a small discount for cash payments has helped us keep those customers happy and manage our costs better."
The shift towards digital payments is not without its benefits. Contactless transactions are often faster and more convenient for both consumers and businesses, reducing wait times and streamlining operations. However, the transition is not seamless for everyone. In regional areas, where internet connectivity can be less reliable, the reliance on digital payments poses additional challenges.
A retailer in a regional town expressed concerns about the infrastructure needed to support a fully cashless system. "We'd love to go completely digital, but the reality is that our internet isn't always reliable. Cash is still a necessary option for us and our customers," they explained.
The debate over cash versus digital payments also touches on issues of financial inclusion. Lower-income households and those without access to banking services are often more reliant on cash. For these groups, the move towards a cashless society could exacerbate existing inequalities.
Morris highlights the importance of preserving payment choice as a means of ensuring inclusivity. "Small businesses must do what they can to keep both coins and contactless in play," she advises. By offering multiple payment options, businesses can cater to a broader customer base and ensure that no one is left behind in the transition.
As Australia continues to navigate its path towards a cashless future, the experiences of small businesses serve as a reminder of the complexities involved. While the convenience of digital payments is undeniable, the need for flexibility and inclusivity remains paramount. For many businesses, the focus is not on choosing one payment method over another but on finding a balance that works for them and their customers.
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