Are you thinking of making your business cashless and only accepting digital payments? Of course, there are benefits to going cashless, like easier bookkeeping and reporting, quicker transactions and overall better hygiene.
The trend of digital payments is also growing, and many customers find digital payments fast and easy. However, there is new evidence to suggest that customers are not ready to totally give up on cash altogether.
Consumers still want cash as an option
A new survey from money.com.au found that Australian shoppers still want the right to pay with cash:
- 68% of respondents to the survey said that they believe all businesses should be required to accept cash.
- 14% said essential services (such as supermarkets, pharmacies and petrol stations) should at least continue accepting cash.
- Only 5% of Aussies surveyed said they support a “no cash” policy.
Customers are fed up with card fees
According to the money.com.au research, 39% of people said that in-store debit and credit card fees were the most hated type of fee. Even ATM fees didn’t rank that highly (14%).
Using cash is one way for customers to avoid incurring debit and credit card fees while shopping.
That said, merchant fees are frequently charged to the business each time a customer uses a card to pay, so many small businesses choose to pass this fee on instead of wearing the cost. This is especially true for any cards that offer significant rewards for consumers.
But it’s not simply card fees that are driving people to use cash. Different generations have different opinions on cash. Boomers are the most likely to say all businesses should accept cash (83%), followed by Gen X (71%). In opposition to this, one quarter (25%) of Gen Z people surveyed said that businesses should have the right to accept or reject cash if they wanted.
So, what should small businesses do if they’re thinking of going cashless?
Business owners should still consider multiple payment options
Research from PayPal reveals that payment preferences matter for customers, regardless of their preferred method of payment.
Did you know that 70% of Australians abandon their cart before making payment when shopping online?? The biggest reasons are security (41%) followed by no preferred payment method (36%). Backing these stats up, the number one reason to complete a payment online was because the preferred payment was available (59%).
While the PayPal survey is focused purely on ecommerce, it still shows that if the preferred payment method is not available then customers will just go somewhere else to shop that is more convenient. This customer attitude could also be true for physical stores.
Mandatory cash laws are coming
One of the most important reasons to continue accepting cash is that mandatory cash laws are coming into effect in 2026. The proposed new cash mandate laws would require certain businesses to accept cash as payment for groceries, fuel and other items deemed essential.
This new initiative from the Australian Government aims to ensure that Australians who rely on physical currency are not excluded from making everyday purchases.
The pros of accepting cash
While digital payments dominate, there are still many advantages to keeping cash as a payment option. Other than mandatory cash laws, consider some of these points first before going cashless:
- Cater to more customers: Accepting cash ensures that you’re not excluding older Australians, rural customers or people without access to cards or mobile wallets.
- Avoid card fees: Cash payments don’t come with merchant processing fees, helping you preserve your profit margins on smaller transactions.
- Maintain sales during tech issues: If your EFTPOS terminal goes down or there’s a power or internet outage, cash allows you to continue trading without disruption.
- Faster for small transactions: In low-tech or fast-paced environments like markets, salons, or cafes, handing over a few coins can be quicker than waiting for a payment terminal to connect.
- Build trust and goodwill: Some customers see businesses that accept cash as more accommodating and inclusive, which can improve your reputation and encourage repeat visits.
- Useful for tips and small donations: Cash remains a popular option for service-based or hospitality businesses, especially in venues without digital tip functionality.
Are there downsides to accepting cash?
Accepting cash can help you stay connected to a wider range of customers and provide overall better customer service. However, just like any other payment method, there are some challenges and risks.
The most obvious risk is theft, both external and internal. Businesses with visible tills or frequent cash handling may become a target for opportunistic criminals. There’s also the chance of human error – miscounting, misplaced funds or unbalanced cash registers at the end of the day can all impact your bottom line.
On top of this, the manual nature of managing physical money takes time and effort, whether it’s reconciling end-of-day takings, storing cash securely or training staff in proper handling procedures.
The final word on cash
Whether you choose to go fully digital or keep accepting physical currency, the key takeaway is this: flexibility matters. For small business owners, it’s all about finding the right balance between convenience, cost and customer service.
