TL;DR
Australia has one of the world's fastest-declining cash usage rates, with the Reserve Bank of Australia reporting that cash now accounts for fewer than 20% of retail transactions by volume. This shift toward digital payments has accelerated the adoption of online money transfer platforms, making international remittances from Australia faster, cheaper, and more accessible than at any point in history. Specialist platforms including Wise, Remitly, and OFX consistently offer better exchange rates and lower fees than Australian banks for AUD-to-INR, AUD-to-PHP, AUD-to-PKR, and other major remittance corridors.
How Fast Is Australia Moving Away from Cash?
Australia's transition away from cash payments has been dramatic and sustained. According to the Reserve Bank of Australia's (RBA) Consumer Payments Survey, cash's share of in-person transactions fell from 70% in 2007 to approximately 16% by 2022, making Australia one of the most cashless consumer economies in the developed world. The COVID-19 pandemic accelerated this trend significantly, as contactless card payments and mobile wallet solutions became the default for even small-value transactions that previously relied on coins and notes.
The number of ATMs in Australia has declined sharply as a consequence. The RBA reported a reduction of approximately 17% in the total ATM network between 2017 and 2022, as the major banks closed machines that were no longer economically viable at lower usage volumes. The big four Australian banks (Commonwealth Bank, ANZ, NAB, and Westpac) have progressively removed fees from their own ATM networks while simultaneously reducing the total number of machines, concentrating ATM access in high-traffic locations and de-prioritising remote areas.
Contactless payment is now available at 99% of point-of-sale terminals in Australia, according to the Australian Payments Network (AusPayNet). The New Payments Platform (NPP), which launched in 2018 and operates the PayID real-time payment system, has enabled instant bank-to-bank transfers between Australian accounts using a mobile number or email address as a payment identifier, further reducing the practical need for cash in everyday transactions.
Why Australia's Cash Decline Matters for Remittances
Australia is a significant source of international remittances. According to World Bank data, Australia consistently ranks among the top 15 global source countries for remittance outflows, with approximately USD 5 billion to USD 7 billion leaving Australia annually in the form of personal and business transfers to India, the Philippines, China, Vietnam, Nepal, Pakistan, and other major corridors.
The decline in cash usage has had two important effects on how these remittances are made. First, it has shifted the default payment behaviour of Australian residents toward digital channels, making the adoption of online money transfer platforms intuitive and frictionless for a population already comfortable with digital-first financial services. Second, it has intensified regulatory scrutiny of cash-based money transmission, with AUSTRAC (the Australian Transaction Reports and Analysis Centre, Australia's financial intelligence and anti-money laundering regulator) maintaining strict reporting requirements for physical cash transactions above AUD 10,000.
The practical consequence is that the overwhelming majority of international remittances from Australia now flow through digital channels. Bank wire transfers, online specialist platforms, and mobile apps collectively account for the vast majority of outbound remittance volume, with cash-based money transfer operators playing a significantly smaller role in Australia than in comparable remittance-source markets such as the United States or the United Kingdom.
How Australians Send Money Internationally in 2025
Australian residents sending money abroad have access to three primary categories of transfer mechanism, each with distinct cost, speed, and regulatory characteristics.
Bank wire transfers (SWIFT transfers) remain the default option for many Australians, particularly for business payments and large one-off transfers. All four major Australian banks and most regional banks offer international wire transfer capability through their online banking platforms. However, Australian bank wire transfers are among the most expensive in the developed world for retail customers, with exchange rate margins of 2.5% to 4% above the mid-market rate, transfer fees of AUD 20 to AUD 32 per transaction, and settlement times of two to five business days for most corridors.
Specialist online transfer platforms have captured a substantial and growing share of Australian remittance volume precisely because they offer materially better pricing than the major banks. Wise, OFX, Remitly, WorldRemit, TorFX, and other licensed platforms typically offer exchange rate margins of 0.4% to 1.5% above mid-market for major AUD corridors, with lower or zero explicit fees and faster settlement times. The RBA's own research has highlighted that Australians who compare specialist platforms before transferring save significantly relative to bank transfer costs on equivalent amounts.
Mobile and digital wallet transfers, including PayPal's Xoom service, are used for smaller, more frequent transfers, particularly to markets with high mobile wallet adoption such as the Philippines (GCash, Maya) and India (UPI, Paytm). These platforms offer the convenience of near-instant delivery to mobile wallets but typically apply exchange rate margins somewhat wider than the best specialist bank-to-bank platforms.
The Best Money Transfer Platforms for Australians
OFX is an Australian-founded specialist currency transfer company (ASX: OFX) that is regulated by ASIC and AUSTRAC and offers competitive exchange rates for large transfers, with no transfer fees above AUD 10,000 and dedicated dealer support for transfers above AUD 25,000. It is particularly strong for AUD-to-GBP, AUD-to-EUR, and AUD-to-USD corridors used by Australian businesses and property buyers.
Wise offers mid-market exchange rates with transparent percentage fees on all AUD corridors including AUD-to-INR, AUD-to-PHP, and AUD-to-PKR. It is the most cost-transparent option for most retail transfer amounts and supports bank account delivery to all major remittance destinations.
Remitly is particularly competitive on the AUD-to-PHP corridor, offering both Economy (bank account delivery within two business days) and Express (GCash wallet delivery within minutes) options with competitive AUD-to-PHP exchange rates.
WorldRemit covers African and Pacific Island corridors (including Fiji, Papua New Guinea, and Samoa) with delivery options including mobile money wallet, bank deposit, and cash pickup that specialist FX brokers do not typically offer.
AUD Exchange Rate Considerations for Senders
The Australian dollar is a commodity-linked currency, meaning its value against major currencies including USD, GBP, and EUR is closely correlated with the prices of Australia's major commodity exports including iron ore, coal, and liquefied natural gas. AUD tends to strengthen during periods of strong global economic growth and commodity demand, and weaken during risk-off periods or commodity price downturns.
For regular remittance senders, the most important exchange rate consideration is not timing the market (which is impractical and statistically unlikely to produce consistent benefits) but rather minimising the platform's exchange rate margin on each transfer. A consistent 1.5% saving on the exchange rate margin across monthly transfers of AUD 2,000 generates approximately AUD 360 in additional value for the recipient per year, which significantly outweighs any realistic benefit from attempting to time AUD exchange rate movements.
Regulatory Environment: AUSTRAC and International Transfers
All money transfer operators sending money out of Australia must be registered with AUSTRAC and comply with Australia's Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act 2006. AUSTRAC requires registered providers to conduct customer identification (KYC), monitor transactions for suspicious activity, report cash transactions above AUD 10,000, and submit threshold transaction reports and suspicious matter reports to AUSTRAC as required.
Senders of international transfers from Australia do not need to file any personal AUSTRAC report themselves, as the reporting obligation sits with the registered transfer provider. However, senders should be aware that transfers of large or unusual amounts may trigger requests for additional documentation of the source of funds, particularly for transfers to higher-risk jurisdictions. This is a normal part of the AML compliance process and does not indicate any legal problem with the underlying transaction.
FAQs
Is Australia becoming a cashless society?
Australia is one of the world's most rapidly cashless consumer economies, with cash accounting for fewer than 20% of retail transactions by volume as of 2022 according to the Reserve Bank of Australia. Contactless card payments dominate everyday transactions in cities and major regional centres, though cash remains important in remote areas and for some demographics including older Australians who prefer physical currency. The RBA has committed to maintaining cash infrastructure while acknowledging the long-term structural decline in cash usage.
What is the cheapest way to send money internationally from Australia?
Specialist online transfer platforms consistently offer lower total costs than Australian bank wire transfers for international remittances. OFX, Wise, Remitly, and WorldRemit all offer exchange rate margins significantly tighter than the 2.5% to 4% margins applied by the major Australian banks, with lower or zero explicit fees. For most AUD corridors and amounts above AUD 500, using a specialist platform rather than a bank wire will deliver materially more to the recipient at a lower cost to the sender.
Does AUSTRAC affect international money transfers from Australia?
AUSTRAC regulation affects the money transfer operators rather than individual senders directly. All licensed money transfer providers in Australia must be AUSTRAC-registered and comply with AML/CTF obligations. Individual senders do not need to file reports with AUSTRAC. However, transfers of large amounts or transfers to certain higher-risk destinations may trigger requests for source-of-funds documentation from the transfer provider as part of their regulatory compliance obligations.
How long do international transfers from Australia take?
Transfer times from Australia vary by platform and destination. Australian bank SWIFT wire transfers take two to five business days for most international destinations. Specialist platforms such as Wise typically deliver to major Asian and European bank accounts within one to two business days. Remitly Express transfers to Philippine GCash wallets can deliver within minutes. OFX typically settles within one to two business days on major corridors. Factors affecting speed include the destination country's banking infrastructure, the time of day the transfer is initiated, and whether the transfer falls on a local public holiday.
Which Australian bank is best for international transfers?
None of the major Australian banks offer competitive exchange rates for international transfers compared to specialist platforms. All four major banks (Commonwealth Bank, ANZ, NAB, and Westpac) apply exchange rate margins of 2.5% to 4% above mid-market, plus flat wire fees of AUD 20 to AUD 32. For Australians with a significant ongoing remittance need, switching to a specialist platform such as OFX, Wise, or Remitly for international transfers while maintaining their Australian bank account for domestic banking is the most cost-effective approach.
