Yahoo Finance Banks reveal impact after Aussies try to drain ATMs in cashless protest
Draw Out Some Cash Day was a grassroots social media movement that wanted to prove Aussies still need and use physical money.
The Australian Banking Association (ABA) has revealed the result of this week’s protest against the country going cashless.
Draw Out Some Cash Day was organised by pro-cash advocates who wanted to send a message that physical money is a “use it or lose it” commodity. Aussies were encouraged to head to a bank branch or ATM and take out as much money as they could.
Pictures and videos were uploaded to social media showing queues going out the door at some locations, showing just how many people care about this issue. But did it make any difference?
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“Across the industry, there was no material difference in withdrawals of cash [on April 2],” the ABA told Yahoo Finance.
“Whilst Australians are using less and less cash, we are not going to be cashless. Australians don’t need to change their behaviour when it comes to withdrawing cash, it will continue to be available and accessible to those who wish to use it.”
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Draw Out Some Cash Day was meant to show financial institutions that Aussies still use and need physical money as well as a place to withdraw and deposit it.
Hundreds of bank branches have been closed in recent years because Australians are increasingly doing their banking and payment needs digitally.
Australia has overtaken the likes of the UK, the US, France and Germany to become one of the world’s biggest users of cashless payments, with around 98.9 per cent of all bank transactions done online. The number of payment cards that have been added to mobile phone wallets has jumped from just two million in 2018 to 15.3 million in 2022.
Pro-cash advocate Mike Palmer, who runs the Know Your Rights Facebook group, told Yahoo Finance that while it was great to see collective action like Draw Out Some Cash Day, it needs to happen more often.
“I've been telling people to do this every day for years,” he said. “Go to the banks, take out cash every single day if you can, preferably over the counter.
“Go during your lunch break at work, even if it's a couple hundred dollars. I know it's a hassle but look at the result of people not doing that. Look how many branches are closed. Look how many ATMs have been shut down because people weren't listening and just kept tapping and going.
“People only take action when it affects them personally. And this is obviously something that's now really starting to affect people.”
Advocates are now calling for the 2nd of every month to be Draw Out Some Cash Day to keep the campaign going.
The Reserve Bank of Australia (RBA) revealed last year that 72 per cent of Aussies were classed as low-cash users in 2022, meaning they used physical money for 20 per cent or less of their transactions. Back in 2019, low-cash users made up only 50 per cent of people in the country.
Conversely, only 7 per cent of the population are classed as high-cash users, who use physical money for 80 per cent of their transactions. That was around 14 per cent back in 2019.
The big Armaguard problem
The availability of physical money in Australia is in limbo at the moment as cash transport company Armaguard is trying to avoid insolvency.
Cash Welcome campaign Jason Bryce told Yahoo Finance that Armaguard is responsible for moving 90 per cent of the country’s cash around. The company helps ensure regional and rural towns have enough money in circulation to keep everyone going, but residents have been struggling to get cash in some areas.
“There's a few stories around about towns that have been left with no cash because they've got one or two ATMs, and they’ve both got ‘out of order’ signs or messages displayed on their screen,” he said.
“It's becoming a big, big problem in the bush. A lot of towns have already lost their bank-owned ATMs and they're just relying on the private-company ATMs that charge you $2 or $3. And even those ATMs rely on Armagard.”
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There was a $26 million rescue package offered to Armaguard last week, however it was knocked back. The company said it was “working constructively” with all its customers and other key stakeholders “regarding both short-term and long-term financial solutions”.
RMIT associate professor of finance Dr Angel Zhong said there will be significant knock-on effects for all Australians if Armaguard collapses.
“This increasing preference to use cashless payments is pushing businesses like Armaguard out,” Zhong told Yahoo Finance.
“It will then further increase the cost of using cash for both business and consumers, and that will further accelerate this transition to a cashless society.”
What you need to know about the use of cash in Australia
Fewer people are using cash due to the convenience of paying with phones, watches and cards.
There isn’t a shortage of cash-withdrawal points, with around 20,000 ATMs plus supermarkets to collect from.
There’s about $100 billion in cash floating around Australia - or 2 billion notes.
The government has not said cash will be taken out of circulation.
The Big Four banks have all ruled out going cashless.
Average cash withdrawal has increased from $180 to $290.
RBA: ATM withdrawals dropped from 77.9 million in December 2008 to 29.7 million in June 2023.
Finder survey: 13 per cent of Aussies never use cash, 44 per cent use it once a week, and 42 per cent once a month or less.
