Cash or card in Australia: Which is the best way to pay?

If you plan on going to Australia anytime soon, you might be working out a travel budget right now. Besides determining how much you plan on spending, it’s also important to know the difference in financial habits between the UK and Australian locals.

Cards and digital forms of payment are becoming increasingly popular in Australia, but a portion of people mainly use cash. Although you’ll be able to go cashless in most cities, it still might come in handy in certain situations. We’ll go into more detail to help answer the question - which is more convenient, cash or card in Australia?

We’ll also show you a cost-effective way to handle your spending in Australia. For any international purchases, whether online or in person, you can rely on the Wise card. You can even withdraw cash like a local for low fees and great mid-market exchange rates.

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How cash-centric is Australia?

In the past years, Australia has gotten closer to becoming a cashless society. Although Australians still use cash, cards and digital forms of payment are more popular than ever. As the matter of fact, debit cards are the number one form of payment Down under.¹

Statistics have shown that around 50% of Australian locals use cash at points of sale. Just a couple of years ago, that number was over 70%.²

Digital wallets such as Google Pay and Apple Pay are widely used. Besides that, local tap and pay systems created by major Australian banks are also accepted.¹

Cash etiquette in Australia³

Whether you’ll leave a tip in Australia is entirely up to you. It’s always appreciated, but not mandatory.

Australians usually tip 10%, but you can leave as much as you deem appropriate. Some restaurants include the tip in the bill, so feel free to ask if that’s the case.

Make sure you tip in Australian dollars, so that your service provider doesn’t have to deal with currency exchange later.

Cash or card in Australia - the comparison

We’ve listed some situations where you’ll be paying for things in Australia. Here’s whether you’ll be able to pay by card, in cash or both:

Paying for…	Card	Cash
Taxis	Yes, but a surcharge of up to 5% may be included⁴	Yes
Public transport	In larger cities, yes⁵	Yes
Convenience stores⁶	Usually yes, but Australian businesses can choose which payment method they don’t want to accept	Usually yes, but Australian businesses can choose which payment method they don’t want to accept
Restaurants⁶	Usually yes	Usually yes
Sydney Football Stadium⁶	Yes	No
Surfing lessons	Usually yes	Usually yes
Winery tour	Usually yes	Usually yes

Using your card in Australia at an ATM⁷

There are still plenty of ATMs in Australia, but locating one is not as easy as it was before. The country is slowly becoming cashless and the number of ATMs and physical bank branches is decreasing.

If you’re unable to find an ATM, try going to a petrol station or a supermarket. They sometimes allow customers to withdraw cash at the register with their purchase.

Australian ATMs accept international cards, but you may get charged some fees. Make sure you use an ATM at an officially registered bank in Australia in order to avoid being overcharged.

Will my UK debit card work in Australia?

Yes, you can use UK-issued debit cards in Australia, both for paying and withdrawing cash.

Can I use my UK credit card in Australia?

Yes, as long as you go to a place that accepts cards, you can use your UK credit card in Australia.

Reasons to use cash in Australia

Although you’ll likely be able to pay by card pretty much anywhere in Australia, you shouldn’t give up on cash completely. This is especially important if you plan on going off the beaten path and visiting some smaller towns.

One of the top reasons for carrying cash is tipping. When you leave a cash tip, you’re making sure that the specific person that served you actually receives it.

Reasons to use credit or debit cards in Australia

Cards are the number one form of payment in Australia, so you’ll likely be able to use them everywhere. They are also much safer than carrying around large amounts of cash.

Are contactless card payments common in Australia?

Contactless payments are becoming increasingly popular in Australia, both with cards and mobile phones. You can use them for everything from paying in stores and restaurants to paying for public transport.

The limit for contactless transactions is 100 AUD. Everything over that requires your PIN.⁹

Your Wise card can also be used for contactless payments in Australia. If you don’t want to carry cards with you, you can get the Wise virtual card with the same features.

Other payment methods in Australia

Besides traditional credit and debit cards, other payment methods are also available in Australia.

Mobile wallets¹⁰

Popular digital wallets such as Apple Pay and Google Pay are widely used in Australia. They are much safer and more convenient than carrying around multiple cards.

There are also digital wallets and apps for locals only. One of them is Bank Australia’s Tap & Pay wallet. You can use it for purchases under 100 AUD and wherever you see a Visa payWave terminal. It works on Android phones with the NFC feature.

For an additional layer of security, you could add your Wise virtual card to your wallet. It has all the benefits of a regular Wise card, but it exists in your phone only. You can freeze your Wise virtual card after every transaction, so top-notch security is guaranteed.

Buy now pay later options (BNPL)¹⁰

Australians often use buy now pay later platforms. One of the popular ones is Afterpay. Afterpay lets you pay off your purchase in 4 interest-free instalments over the course of 6 weeks. It can be used for both digital and in-store payments.

Another BNPL app is Zip Pay, which lets you make purchases of up to 1,000 AUD. You can then pay the instalments on a weekly, fortnightly or monthly basis. Zip Pay doesn’t require you to make an initial payment at the time of purchase.

Osko¹⁰

Osko is an Australian payment service that can be accessed from many online banking portals. Since it’s used for peer-to-peer payments, it’s perfect for splitting bills or paying back your friends.

What is the best way to pay in Australia: cash or card?

Although you’ll probably be able to rely on your card entirely while in Australia, it’s still better to have some cash in your wallet. Like we mentioned before, Australian businesses have the right to refuse certain payment methods, so having cash will help you avoid any uncomfortable situations.

Also, cash tips are always appreciated.

Spend like a local in Australia with the Wise card

Want to spend like a local in Australia without worrying about exchange rates and hidden fees? The Wise card, from the money services provider Wise, might be just the thing you’re looking for.

The Wise card can be used for international payments, from your accommodation costs to daily expenses. It automatically converts your pounds at the mid-market exchange rate with only a small, transparent currency conversion fee.

You can also use it to easily withdraw cash from the ATMs in Australia. You can make 2 withdrawals of up to 200 GBP each month for free per account. After that, there is a charge of 0.5 GBP per withdrawal. There’s also a 1.75% fee on any amount you withdraw above 200 GBP.

Spend like a local with Wise 💳

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Cash or card in Australia - FAQs

Here are some of the most frequent questions about using cash or cards in Australia:

Do people still use cash in Australia?

People still use cash in Australia, but debit cards are the most popular payment method.

Should I exchange money before going to Australia?

There’s no need to get Australian dollars before your trip, since you’ll easily find an exchange bureau or an ATM. You could also rely on your Wise card and have it automatically convert the currency for you.

How much money should I take to Australia for a week?

That largely depends on your spending habits and travel style. However, you can always withdraw more money if you end up needing it.

Do you tip in Australia?

It’s not mandatory to tip in Australia, but if you want to, 10% of the bill is the norm.

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Sources used:

1. Statista - Digital payments in Australia - statistics & facts
2. Statista - Cash usage either for online payments or at POS in Australia from 2018 to 4th quarter of 2023
3. The Sydney Morning Herald - Confused about when and how much to tip? Setting the ledger straight on top tipping etiquette
4. Queensland Department of Transport and Main Roads - Maximum payment surcharge
5. NerdWallet - Can you tap on with a credit card on a bus?
6. Money Magazine - Do Australian businesses have to accept cash?
7. SBS - ATMs are slowly disappearing. Does this mean you'll have to pay to access your money?
8. Debitcards.com.au - Can I use a British debit card in Australia?
9. NerdWallet - How do contactless payments work?
10. MYOB - The A to Z of payment methods in Australia

Sources last checked on date: 30-May-2024