Australia's shift to digital banking is gathering pace, with the number of people leaving home without their wallets or cards, relying on their phone or another device instead, doubling in three years. This is up from 19 percent in 2019 to 38 percent in 2022.
Younger people are leading the ‘digital wallet’ charge, with two-thirds of those aged 18-24 relying on their phone or wearable to make payments.
Payments utilising methods other than cash are also rapidly increasing, with 20 percent of all payments now conducted using PayID and 15 million PayID registrations as of 1 May 2023, an increase from six million in 2021. And one in two Australian smartphone users say they have used their mobile phone to make a purchase in-store, in-app or on a website, an increase from 18 percent in 2019 to 49 percent in 2022.
ABA Chief Executive Officer Anna Bligh said changes in how Australians do their banking are happening at breakneck speed.
The rapid changes are captured in a new Australian Banking Association (ABA) interactive ‘Spend the Day’ site - a comprehensive snapshot of how Australians are using different payment technologies.
The new site provides important insights into Australians' spending habits in a fast-changing payments environment.
“The transformation of the nation’s payments preferences is continuing at a rapid pace, and this new site provides a comprehensive snapshot of the latest trends.
“Designed to be interactive and easy to navigate and update, the site helps explain the current state of our payments system in Australia.”
While young people are taking up new payment technologies at the fastest rate, only 9 percent of those aged 65 and over report leaving home without their wallets or cards.
As the mobile ‘branch in your hand’ trend grows, branch usage is declining, with 70 percent of Australians reporting not having visited a branch in the past month.
- Although branches continue to play an important role for those who prefer face-to-face transactions or for complex transactions:
only 3 percent of Australians report having visited a branch three or more times in the past month.
just 4 percent of Australians report preferring to visit a branch to check account balances. The remainder utilises a mobile banking app (56 percent), internet banking (31 percent), phone banking (4 percent) and online live chat (1 percent).
just 4 percent of Australians report preferring to visit a branch to pay bills. The remainder utilises a mobile banking app (49 percent), internet banking (35 percent), phone banking (4 percent), and online live chat (2 percent).