Australians are Hoarding Cash and Making Cashless Transactions Reports Financial Institutions

In Sept 2020, Westpac has agreed to pay $1.3 billion, the largest fine in Australian corporate history, to settle a case brought against it for breaching international money transfer laws. Robert Cianflone/Getty Images

Australians are hoarding cash but using cashless transactions more than ever thanks to the effects of the CCP virus, two new reports have found.

The reports from electronic payment company Square shows that cash gave way to cards in daily transactions over the first half of the year while Australia’s central banking institution the Reserve Bank of Australia (RBA)revealed that the demand for banknotes had increased by 11 billion since February.

More Businesses Turn to Cashless

Square’s report (pdf) showed that over one in three Australian businesses— an estimated 36 percent—were effectively cashless during the lock-down peak in April, compared to seven percent pre-pandemic in January.  Square defined cashless as accepting 95% or more transactions through debit or credit cards.