By A recent study by Mastercard has revealed a staggering figure: Australian travellers are collectively sitting on AUD$853 million in unused foreign currency. This sum, accumulated from trips abroad, highlights a persistent reluctance to adapt to modern spending methods and the hidden costs associated with traditional travel money habits.
Despite the convenience and security offered by digital payment options, many Australians continue to rely on cash when travelling internationally. Mastercard’s research indicates that 42% of Aussie travellers return home with a significant amount of unspent foreign currency, amounting to nearly a billion dollars. This trend not only reflects a resistance to change but also suggests a lack of awareness about the benefits of digital spending abroad.
The reluctance to exchange this currency back to Australian dollars upon return—admitted by 68% of travellers—adds to the out-of-pocket expenses. The research underscores a dichotomy: while Australians are quick to embrace digital payments domestically, they revert to cash once they cross borders, increasing the risks of loss and theft.
The Digital Divide in Travel Finance
Mastercard’s findings point to a digital divide in how Australians manage money at home versus abroad. Mallika Sathi, Vice President of Cyber & Intelligence at Mastercard Australasia, notes an “outdated perception” that paying overseas differs from domestic transactions. Yet, the reality is that many banks and fintech companies now offer travel-centric card solutions that are as easy and secure to use abroad as they are at home.
These innovative solutions often come with competitive exchange rates, multi-currency wallets, and in-app features that give travellers greater control over their finances. Despite these advancements, the slow uptake of travel money technology among Australians suggests a gap between available financial tools and consumer habits.
A Call for Financial Literacy in Travel
The report by Mastercard serves as a call to action for greater financial literacy among Australian travellers. Embracing digital payment methods can not only save money but also provide additional layers of security against fraud and scams. As travel becomes more accessible and financial technology evolves, there is a clear need for education on the benefits of these modern payment methods.
The significant sum of unused currency represents more than just missed financial opportunities; it’s a reflection of the need for a cultural shift in how Australians approach money during travel. As the world moves towards a more digital economy, adapting to these changes will be crucial for travellers looking to make the most of their international experiences.