Thousands of ATMs have been removed across Australia as the country continues to switch away from using cash.
The number of bank-owned branches and bank-owned ATMs has dropped by more than half in the last seven years, falling from 19,508 to 8,836 as of June 30, 2024, with Westpac and Commonwealth Bank among the key players in this reduction.
In the last financial year, 926 ATMs have been removed, with a staggering 8,338 bank-owned ATMs shut down in the last seven years, data from the the Australian Prudential Regulatory Authority revealed.
Australia has also lost 230 bank branches in its major cities and 52 in regional areas. Additionally, 63 Australia Post outlets that offered banking and cash services closed in the last year.
Jason Bryce, the founder of the Cash Advocacy group, Cash Welcome, argued that the banks needed to maintain access to cash services, despite increasing digital payment methods.
‘If a bank proposes to close a branch or ATM they must publish a plan for how their customers will access fee-free local cash.’
‘Banks collectively must ensure there is easy local access to cash in every community.
‘Large retailers selling food, groceries, medicine and fuel must accept cash and must ensure that not less than 40 per cent of self-checkout terminals accept cash.’
Thousands of ATMs have been removed across Australia as the country continues to switch away from using cash
Mr Bryce is urging Aussies to sign the petition ‘An Australian cash and banking guarantee’, which holds banks accountable to keeping cash in circulation rather than closing down regional branches and ATMs.
RMIT Associate Professor in Finance Angel Zhong said banknotes have become much rarer in day-to-day transactions due to the convivence of digital transactions.
‘The shift towards a cashless society in Australia isn’t just a possibility, it’s already well underway,’ she explained.
However, many older Australians still preferred to pay in physical currency with almost one in five classified as a ‘high-cash user’.
Dr Zhong said as Australia needed provide ‘better support for other age groups to embrace technology, better literacy about systems in technology as well as financial assistance’ for those struggling with the transition to digital payments.
Earlier this week, the federal government said it was prepared to ban debit payment surcharges by 2026, pending a review carried out by the Reserve Bank
Another issue with digital transactions was that they often incurred a surcharge, which might not be immediately apparent at the time of purchase.
Earlier this week, the federal government said it was prepared to ban debit payment surcharges by 2026, pending a review carried out by the Reserve Bank.
‘Surcharges were introduced as a way for businesses to pass down the fees for processing transactions and leasing payment terminals from banks,’ Dr Zhong explained.
‘However, this practice becomes problematic when surcharges exceed the actual cost of processing payments – an issue currently under review by the RBA.
‘It is also important for any reforms to maintain an optimal balance to support businesses, which may have to bear extra bank costs to continue operating payment terminals.’
