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Signs are emerging that Australia is moving towards a cashless society, with the number of consumers making ATM cash withdrawals dropping to the lowest point in more than six years. 

Data from MWE Consulting, which specialises in debit and credit card analysis, showed that debit card ATM withdrawals per account fell about 6.3 per cent to 2.39 a month last year. That compared with 2.55 in the previous year and 2.62 in 2006, when monthly transactions peaked.

"We have been seeing a reduction in cash transactions on credit (card) for a long time . . . but what is significant is this (debit card) reduction, which accelerated in the last year," said MWE managing director Mike Ebstein.

"I think that's a sign that Australians are beginning to move away from cash as their staple payment product."

MWE estimates that between 65 and 70 per cent of all transactions in Australia were still cash. Typically, cash is used for transactions of less than $25.

For the first time, he said, figures showed a reduction in cash usage, indicating that "we are finally beginning to move towards a cashless society".

The next step will be the use of contactless credit and debit cards.

"We will start to see those happen this year," Mr Ebstein said.

Late last year, the Commonwealth Bank moved to equip all of its debit and credit cards with contactless card technology. Cardholders only have to tap their debit or credit card on a CBA contactless reader to make the transaction. Other banks are set to follow.