A KFC branch in Australia was revealed to be only accepting credit card payments. While customers show their disappointment via social media, Australian banks also seem to be moving away from the need for banknotes.
Australian customers have been surprised by branches of KFC becoming completely cashless.
Several have started only accepting credit cards in New South Wales, Australia’s most populated State. A Facebook post, which showed one of these KFCs, questioned the decision and the move to a cashless business.
Though KFC has not made any official comment following the situation, they are a company that has explicitly said that it is open to technological changes in service. On its global About page, KFC says: “KFC is always evolving to make it easier for our guests to enjoy our chicken. We do this through digital innovation and building new restaurants with our valued franchise partners.” Other fast-food chains in Australia still accept cash and have shown no intention to change.
When reportedly asked about the legality of the change by 9news, KFC assured that the change was “in line with legal requirements.”
Not accepting cash payments is legal in Australia
According to the Australian Competition and Consumer Commission (ACCC), established and empowered by the Competition and Consumer Act of 2010, businesses “can choose which payment types they accept” and that it is legal for them not to accept cash. The ACCC also states that “businesses should be clear and upfront about the types of payments they accept, and the total minimum price payable for their goods and services.”
This move by KFC franchises comes amidst financial changes in Australia favoring non-cash transactions.
On September 20, the Bank Commonwealth of Australia (CBA) changed the fee for depositing “quick cash bags” for business accounts from 3 to 10 Australian dollars (2 to 6 US dollars) per bag. This means businesses with a CBA account will have to pay 10 Australian dollars for every deposit they make.
Their CEO, Matt Comyn, explained the inherent costs of using cash during a Senate Committee Hearing: “We estimate that continuing to support distribution and availability of cash costs CBA $400 million (US$255 million) each year.” He added that it was “unsustainable” to provide this service which is progressively used less.
Macquarie Bank phasing out cash next year
CBA is the largest Australian bank by market share, commanding 14.3% of the market. CBA reported in June a record 10 billion Australian dollars (6.4 billion US dollars) profit across 2022–2023.
Macquarie Bank announced their permanent move to dealing without cash. They claimed that by November 2024, they would be “phasing out cash and cheque services across all Macquarie banking and wealth management products.”
Not all major Australian banks are following this pattern. For instance, the Australia and New Zealand Banking Group (ANZ), which commands an 8.8% market share, still allows the depositing of cash bags for free.
In other countries like Austria or Switzerland, the right to use cash is debated to be part of their constitution.