Australia's Cashless Future: Balancing Innovation and Inclusion with Nexxtap

Declining Cash Usage: A Nation in Transition

Over the past decade, cash usage in Australia has plummeted, with in-store cash payments forecast to decline from 8.3% in 2020 to just 2.1% by 2024. In 2010, cash accounted for 62% of purchases; by 2022, this figure had dropped to 13%. Despite this trend, approximately 1.5 million Australians still use cash for over 80% of their in-person payments, often citing privacy, security, or convenience as their reasons.

The decline in cash reflects broader societal shifts towards digital payments, driven by the adoption of digital wallets and the rising popularity of Buy Now Pay Later (BNPL) services. However, while the majority embrace these digital advancements, cash remains vital for specific groups, particularly older Australians and those in rural or remote areas where access to reliable internet may be limited.

The New Cash Mandate: Ensuring Financial Inclusion

The Australian Government’s cash mandate for essential goods and services is set to commence on 1 January 2026. Under this policy:

• Businesses selling essential items, like groceries and fuel, must accept cash.
• Small businesses will have “appropriate exemptions.”
• Treasury will consult to define which businesses fall under the “essential” category.

This initiative aims to safeguard financial inclusion for vulnerable populations who depend on cash for daily transactions. Additionally, cash serves as a critical backup during natural disasters or digital outages, ensuring people can still access essentials when electronic systems fail.

Adapting to the Shift: How Nexxtap Supports Businesses

While Nexxtap operates exclusively in the digital payments space, our SoftPOS technology helps businesses seamlessly adapt to the shift toward cashless transactions. Our solution enables merchants to accept card payments directly on their Android devices without the need for additional hardware. This flexibility empowers businesses to process transactions anywhere with an internet connection, enhancing accessibility in urban centres and remote areas alike.

By offering simple, secure, and scalable payment solutions, Nexxtap equips businesses to cater to digitally savvy customers while reducing the costs associated with card transactions which can be useful for possible increased costs with cash handling and banking for businesses with this mandate. 

The Future of Payments in Australia

Australia’s payment landscape is evolving rapidly. Digital wallets, for instance, are expected to account for 15.5% of point-of-sale payments by 2024, while BNPL services will grow to nearly 20%. The government’s plans to phase out cheques entirely by 2029 further underscore the transition to digital finance.

This trajectory highlights the need for businesses to remain agile. While cash will persist as a vital payment option for some, digital payment systems offer unmatched convenience and efficiency for the majority. Nexxtap’s solutions are designed to help businesses bridge this divide, ensuring they remain inclusive while embracing innovation.

Balancing Progress and Inclusion

The cash mandate reflects the delicate balance between fostering innovation and ensuring no Australian is left behind. As society edges closer to a cashless future, policies like this aim to protect those who rely on cash for independence, privacy, or practicality.

At Nexxtap, we believe in empowering businesses to offer diverse payment options that meet their customers' unique needs. As Australia navigates this transformation, we stand ready to support businesses in adapting to both the mandates of today and the opportunities of tomorrow. The future of payments is digital, and Nexxtap is here to help businesses take the leap.