Could cash make a comeback after CrowdStrike outage exposes risks?


Dec 27 2024
ABC News


In short:
Global systems outages, such as the CrowdStrike failure, can leave organisations without access to digital payment methods.

The federal government is consulting on plans to mandate that businesses selling essential items must accept cash.   :)

What's next?
The government says the mandate will come in from January 1, 2026, depending on the outcome of the consultation.


When a CrowdStrike update caused millions of Microsoft systems to crash around the world in July 2024, many started questioning our heavy reliance on digital banking.

Daily life was disrupted — businesses and governments that couldn't accept cash as an alternative payment, had to shut down entirely.

Airlines, airports, banks, hospitals and retailers came to a standstill worldwide.

The system outages, as many pro-cash campaigners argued, underline the risk of moving to a cashless world.

Assistant Treasurer Stephen Jones agrees that cash provides an essential fallback when digital payments break down.

"Sometimes systems go down, sometimes electronic payment systems don't work," he says.

"We've all been standing at a queue in a supermarket or a shop somewhere, and they say the EFTPOS or the payments system has gone down, the power's out. We want to ensure that that doesn't become a crippling event right across the economy."

Minister sits at desk in his electorate office
Stephen Jones says cash is an essential fallback when digital payments break down.

The assistant treasurer says that's a big part of why, in November, the federal government mandated cash for essential purchases, such as groceries and fuel.



"We wanted to ensure all Australians — one-and-a-half-million Australians who prefer to use cash — are able to do that," Mr Jones tells ABC News.

Treasury has already started consulting on which businesses supplying essential goods and services should be covered by the mandate.

Mr Jones says Treasury is considering carving out small businesses with an annual turnover of less than $10 million.

Final details of the mandate will be announced later in 2025, and it is expected to take effect on January 1, 2026.

Cash transactions have declined as more people go digital
Cash use in Australia has been declining but isn't out of vogue just yet.

According to the Reserve Bank of Australia (RBA), in 2007, 69 per cent of Australians said they would use cash to transact.

Does cash have a future?

Regulators ponder how soon Australia may go cashless or whether Australians may have to bear the costs of using cash.

By 2014, his had fallen to 47 per cent. By 2019 it dropped to 27 per cent and by 2022, only 13 per cent.

Yousuf Qureshi has been selling carpets for 23 years and has seen this big shift in consumer preferences, but says for older people coming to his store to buy an exotic rug, cash is still king.

"They're saving their money, and when they're saving enough, they come by the [store]," he says.

"Sometimes they buy [carpets as gifts for] their grandson or granddaughter … they want to pay cash for them."

Mr Qureshi says in the early days of running his business, the split between those using cash versus debit or credit cards was roughly 50/50.

An older man in his rug shop with carpets behind him
Yousuf Qureshi says for older people, cash is still king.

Today, 90 per cent of customers use debit or credit cards to make purchases at his store in Preston in Melbourne's north-east.

"Globally, everything changed, it's a digital world now — maybe very soon, cash will be no more," he says.

Older users, migrants and people in regions still like paying with cash
RBA data shows older survey participants were the highest cash users, with 18 per cent of respondents aged 65 and above classified as high cash users.

By contrast, only 3 per cent of those under the age of 50 were high cash users. About 82 per cent were low cash users.

Kim Nguyen sees this trend at play.

She works at a butcher in Preston Markets in Melbourne and says 30 to 40 per cent of their customers — typically older people and migrants — still prefer to pay with cash.   :)

A young lady at a butcher with staff working behind her
Kim Nguyen says the older generation can struggle with card payments and prefer cash.

"The older generation, sometimes they struggle with the card. They say, 'How does it work?' But the younger generation tap and go," she says.

Mr Jones says there's also a strong preference for cash in regional Australia, "where telecommunications networks aren't as good as they are within the cities".

Cash is still king in my books

I hardly ever use cash—super appears in my account, I use the card to pay for stuff.

I use cash all the time, I get good deals from tradies when I suggest cash.

Oh, yeah, cash is great with tradies!

This is why governments don’t like cash.

Cash is great. There's no surcharges.
$80 for a stone chip repair to windscreen if by card. $50 if by cash.

Mugged in alleyway is $100 cash.
Mugged online is $10,000

Leroy wrote on Dec 27^th, 2024 at 8:26am:

I use cash all the time, I get good deals from tradies when I suggest cash.

You mean the Ruble, dontcha, Yuri?

Marla wrote on Dec 27^th, 2024 at 8:54am:

Leroy wrote on Dec 27th, 2024 at 8:26am: I use cash all the time, I get good deals from tradies when I suggest cash. You mean the Ruble, dontcha, Yuri?

I suppose you need both Marla, the card to make the line and cash to make the snorting tube.

Marla wrote on Dec 27^th, 2024 at 8:54am:

Leroy wrote on Dec 27th, 2024 at 8:26am: I use cash all the time, I get good deals from tradies when I suggest cash. You mean the Ruble, dontcha, Yuri?

How to you get paid Marla, cash or stolen goods.

Leroy wrote on Dec 27^th, 2024 at 9:15am:

How to you get paid Marla, cash or stolen goods.

You don't fool me, Yuri.

Marla wrote on Dec 27^th, 2024 at 9:19am:

Leroy wrote on Dec 27th, 2024 at 9:15am: How to you get paid Marla, cash or stolen goods. You don't fool me, Yuri.

Oh no you have exposed me Marla, I'm Yuri.

No one can fool you.

I prefer to pay cash but it certainly doesn’t worry me if I have to shop around to find a store willing to accept it.

They said on the news last night that they CAN'T get rid of cash. But they also said it will be in restricted use. Dumbed down by dummies.

Quote:

The federal government is consulting on plans to mandate that businesses selling essential items must accept cash.

I thought we already had rules like that.

Pretty much all business to business transactions for all but the smallest companies are electronic these days. Basically any companies where employees need to be given financial responsibility.

freediver wrote on Dec 28^th, 2024 at 9:53am:

Quote: The federal government is consulting on plans to mandate that businesses selling essential items must accept cash. I thought we already had rules like that.

Not yet.

The federal government will require businesses to accept cash as payment for groceries, fuel and other essentials, but will phase out cheques entirely within five years.

Treasurer Jim Chalmers said the government would begin consultation on a "cash mandate" before the end of the year, but implementation would likely wait until after the election.

There's a common misconception that all businesses operating in Australia must accept cash because it's legal tender.

That's not the case.

According to the Australian Competition and Consumer Commission, current laws allow businesses to choose which payment types they accept.

It’s one of the better effort Albo government has made.

While there are significant cost savings to businesses in going cash free the banks don’t give them eftpos machines for free either.
While a majority seem to profit from transaction chargers the banks are taking the lion’s share for what?
Allowing you to spend your money?

doesn’t concern me, I often see a sign saying this business doesn’t except cash and I will happily walk past it to one that does.

It’s a choice . For now anyway.

Leroy wrote on Dec 27^th, 2024 at 8:26am:

I use cash all the time, I get good deals from tardies when I suggest cash.

No WONDER
It's income he doesn't have to declare to the ATO
Paid for by your OWN undeclared income.
It's a win-win situation

If you rule out every mug that's NOT breaking the law - and paying MORE than his share to the ATO, to cover the CRIMINALLY shortfall of ATO receipts you've created.




.

buzzanddidj wrote on Dec 29^th, 2024 at 3:20pm:

Leroy wrote on Dec 27th, 2024 at 8:26am: I use cash all the time, I get good deals from tardies when I suggest cash. No WONDER It's income he doesn't have to declare to the ATO Paid for by your OWN undeclared income. It's a win-win situation If you rule out every mug that's NOT breaking the law - and paying MORE than his share to the ATO, to cover the CRIMINALLY shortfall of ATO receipts you've created. .

It also saves him from having to pay an accountant to exploit tax loopholes that enable the rich to get richer. Do I give a bugger, hell no.

https://www.abc.net.au/news/2024-12-28/is-there-still-a-need-for-cash/104623926

I’m unfazed. I’m thinking how much money I will save if I can’t pay cash!

Hurts business more than I ?

They've done over 10,000+ tests of people given cash and people given tap&go.
People with tap & go spent by a long shot over people with cash.
The trick they say is people with cash were reluctant to hand over cash and often changed their minds.
While people with tap &go never saw themselves handing something over: the card remained with them, even if it was devaluing with each tap.
People with cash saved more and could physically see the process of exchange.
Retail businesses don't want that. They want spenders, not savers.
Other tests involved large amounts of money. People with cash spent far far less, with a reluctance to carry that much around. But with $20,000 on a simple card, nearly ever tap & go person spent it all on big purchases.

That's why they want a cashless system. To make people spend, not save.

Jasin wrote on Dec 29^th, 2024 at 5:02pm:

They've done over 10,000+ tests of people given cash and people given tap&go. People with tap & go spent by a long shot over people with cash. The trick they say is people with cash were reluctant to hand over cash and often changed their minds. While people with tap &go never saw themselves handing something over: the card remained with them, even if it was devaluing with each tap. People with cash saved more and could physically see the process of exchange. Retail businesses don't want that. They want spenders, not savers. Other tests involved large amounts of money. People with cash spent far far less, with a reluctance to carry that much around. But with $20,000 on a simple card, nearly ever tap & go person spent it all on big purchases. That's why they want a cashless system. To make people spend, not save.

My youngest son (33) was contacted by his bank with an offer for a loan. He told them he didn't want a loan but they said he does not have a credit rating and it would be in his best interests to get a loan and establish a credit rating.

“ Millions of coins sit in wallets, banks, cash register tills, back pockets and underneath sofa cushions – and they face an unknown fate.”
“ smh

So they are going too go about removing cash via stealth.
Basically the plan will be via a media campaign to convince us how annoying and useless coins are then when they have that up and running they will start on the notes.

The result they want is at a push of a button see exactly how much “tokens “you have and how it got there and who you share it with.

Doesn’t matter who you vote for it’s going too happen.