Cash vs Card: Is the King Still Reigning in a Digital World?
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Posted by: Caféstudy
1st Oct 2024 02:04pm
Since the pandemic, cash payments have been on the decline as more businesses adopt digital transactions. But is cash really on its way out? We asked Caféstudy members about their experiences and whether they think cash still holds a place in this increasingly digital world. Their responses reveal a mix of perspectives, with people divided over convenience, security, and the social impact of moving away from cash.
The Appeal of Digital Payments:
For many, cashless payments have become a part of everyday life. The convenience of tapping a card or using a smartphone to pay is hard to beat, especially for those who rarely carry cash anymore. According to the Reserve Bank of Australia (RBA), contactless payments have surged over the past decade, with 80% of in-person payments now made electronically​ (The University of Melbourne, 2020). Digital payments, for a lot of people, have made shopping quicker and more straightforward.
But convenience comes at a price. Several people expressed their frustration with the surcharges attached to card payments. It's clear that while cashless payments are faster, they can add hidden costs that aren’t always welcome. According to consumer group CHOICE, these surcharges can vary, adding up to a significant amount over time, especially for small transactions.
"I rarely carry cash, and I like the ease of just swiping my card to buy something or grab a quick snack"
"I don’t mind using my card, but I do mind the extra fees that sneak in"
What Happens When Technology Fails?
Several respondents pointed out the potential risks of relying too heavily on digital systems. One recurring concern was what happens when the technology stops working. Situations like this remind us of the limitations of a fully digital payment system, especially when outages happen unexpectedly.
"There was a major issue when the internet went down, and no one could use their cards for hours"
This concern is particularly relevant for those living outside major cities. It’s a reminder that technology isn’t foolproof, and cash still plays a vital role in keeping things running smoothly when systems fail. According to a report by the Australian Competition and Consumer Commission (ACCC), regional areas experience frequent outages that disrupt EFTPOS systems.
"People in the city don’t realize how often EFTPOS and internet services drop out in rural areas. When that happens, card payments simply aren’t an option"
Cash as a Lifeline for Some:
For many respondents, cash represents more than just a payment method—it’s about inclusion. A number of people expressed concern that moving away from cash could leave behind those who are less familiar with digital technology, particularly older generations. In fact, the Australian Banking Association reported that 30% of Australians over the age of 65 rely primarily on cash for day-to-day transactions.
"It feels discriminatory, especially for older people who prefer using cash. It's like we're dividing people into two groups—the tech-savvy and those who still rely on cash"
Cash is also essential for smaller, everyday transactions that digital payments can complicate. For many, cash offers a simplicity that digital payments can’t always provide, especially in informal settings.
"Cash is still needed for things like garage sales, markets, or even tipping service staff.
Security and Spending Control:
While digital payments are often promoted as being more secure, not everyone agrees. Some respondents shared personal stories of card fraud, and others voiced concerns about data breaches. A 2023 report by the Australian Cyber Security Centre revealed that card fraud and online scams surged by 13% compared to the previous year. Cash, on the other hand, gives people a sense of control—both in terms of security and budgeting. Cash can serve as a physical reminder of our limits, something that’s easier to forget when tapping a card.
"When I use cash, I know exactly how much I have to spend. Once it’s gone, it’s gone, and I don’t overspend"
Will Cash Disappear?
While digital payments are clearly here to stay, many respondents believe that cash still has an important role to play. Some shared stories of businesses that tried going cashless but ended up reverting to accepting cash after seeing customer backlash.
For all the benefits that come with digital payments, cash still offers a level of reliability, inclusivity, and familiarity that many Australians aren’t ready to give up.
References:
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Reserve Bank of Australia (RBA). (2022). Trends in Payments, Clearing and Settlement Systems. Retrieved from https://www.rba.gov.au/publications/annual-reports/psb/2022/
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CHOICE. (2023). Surcharges and Fees: What You Need to Know. Retrieved from https://www.choice.com.au/money/banking/everyday-banking/articles/surcharges
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Australian Competition and Consumer Commission (ACCC). (2023). Communications Market Report. Retrieved from https://www.accc.gov.au/publications/communications-market-report
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Australian Banking Association (ABA). (2022). Banking Trends and Older Australians. Retrieved from https://www.ausbanking.org.au/publications/reports
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Australian Cyber Security Centre (ACSC). (2023). Annual Cyber Threat Report 2022–23. Retrieved from https://www.cyber.gov.au/acsc/view-all-content/reports
Comments 11
jilln
Its the surcharges on cards that businesses are now putting on when you use your card. In some instances they dont take cash. Thats why I only now go to places that only take cash or now charges on credit or debit cards.
ab
I couldn't agree more, with those findings. That said, I take exception to the technologically challenged over 65s. At 66 yrs old I'm apparently one of the 30% clinging desperately to cash... lol. BUT, I built the water-cooled PC I'm using right now, my home theatre PC that plays a central role of the home theatre setup and numerous other PCs for family and friends. I've setup my home Wi-Fi and linked all the smart devices in my home, but if 'they' want to think I haven't quite grasped the concept of waving a card or phone over a reader, then that's their problem not mine.
I also object to paying merchant fees, so I like to carry cash for small purchases like a coffee and snacks. Some businesses absorb that cost now as a cost of doing business... I imagine they don't want to charge it and risk losing a sale to someone who doesn't. If/when cash is gone and you have no alternative... brace yourself, they'll all pass the cost on to the consumer. So that $5 coffee will be $5.50 and that $18.50 salmon deluxe sushi box will be $19.50, but that's ok, everybody will be happy to pay that for the 30 seconds saved if they paid with cash.
Yes, I have been in situations when a merchant is only accepting cash, because the system is down. So, yes, I was happily able to buy my lunch. 😊
lordofthekitchen
Cash will always be king, the crooks and scammers love digital, it make's life much easier for them, I was in Woollies' the other day, paid in cash whilst three people in a row had to redo there card purchase's, digital is only for the lazy. they don't have to think, just like the fools with button on their cars and SUVs because they are to lazy to close the boot, the only reason government likes digital is they know how much you spend, when and where, just look at the little glitch last month, people all over the world couldn't use their cards, buy groceries or even get medical appointments whilst me with my cash was able t go about my day uninterrupted, long live cash.
saintrobbie
Cash is king in my house . If i go to a store or cafe and they say only card payment well i say sorry i only have cash so i go somewhere else were i can pay cash and know what im spending . Keep the cash no fee from me banks .
chickenman
there are good points in going cashless, but if cash disappears entirely, all transactions, banking,savings and spending will be scrutinised by who know who and people will have next to no control over their finances. if and when tech. fails, the community will shut down. it has happened before in limited cases.
Samantha3260
Cash is still king - look what happens when internet fails.
khal123
I think digital payments needs a new regulations
Superstar666$
I use cash as I find I can budget better. If I don’t have enough cash I don’t buy. Plus I object to being charged eftpos fees to vendors who are enjoying my custom
Shemp
Interesting subject in this modern era. I prefer cash most times when paying for things I need to buy because paying via any of the many digital methods can easily track all your buying habits. Paying via any of the many digital payment can be an incognito intrusion on peoples' privacy without many not realising that their shopping habits everywhere can and is being tracked. This may not matter to most people but I much prefer to use cash while the option is still available.
The use of cash as a means of payment will not disappear completely any time soon although cash payments will continue to diminish gradually which might be unwelcomed by those who want to have the freedom of choice. Freedom of choice is essential.
Natalie3263
As digital transactions are now becoming the norm, we stand to lose the smaller, simpler joys of using cash for certain events, especially when it comes to our children. Pocket money, a grandparent slipping a $5 note into their grandchild’s hand after a visit, or the tooth fairy leaving some money.
We stand to lose ways of effectively teaching our children budgeting skills, especially ones that can be easily seen, followed and practised in everyday life.
baccus
While digital payments have undoubtedly transformed how we conduct transactions, cash still plays a crucial role in today’s economy. It offers reliability in situations where technology fails, provides inclusion for those less familiar with digital methods, and maintains a level of control over spending that many find valuable. As businesses and consumers increasingly adopt digital systems, we must ensure cash remains a viable option for those who rely on it. A balanced approach is essential, ensuring both convenience and accessibility across all demographics.