The number of Australians paying via their mobile phone or smartwatch has doubled in three years, from 19% in 2019 to 38% in 2022, according to the Australian Banking Association.
More consumers in the region are leaving their physical wallets at home, and instead, paying with PayID. PayID is an infrastructure that was developed in collaboration between the Australian financial authorities and the Reserve Bank. It’s a feature that’s linked to the user’s bank account in order to facilitate the sending and receiving of money. Currently, there are 15 million registrations for PayID, a surge from 6 million in 2021.
According to the Australian Banking Association, digital wallet use is particularly prominent among younger consumers. Indeed, two-thirds of this group, ages 18 to 24, lean on their smartphone or wearable devices to make payments. This group tends to be more tech-savvy and eager to adopt the newest technology.
Less Australians Are Visiting Local Bank Branches
While bank branches still offer consumers a lot of value—particularly for those seeking to perform more complex transactions or wanting to interact with bank personnel face-to-face—fewer consumers in Australia are visiting their local bank branches. Indeed, 70% of Australians said they haven’t visited one during the past month.
In a stark contrast, only 3% of Australians said that they visited their local bank branch three or more times in the prior month and just 4% said they have been going to their local branch to pay their bills.
Instead, consumers in Australia are turning to digital for their banking needs. For example, 56% of respondents said they use a mobile banking app and 31% of those polled said they prefer internet banking, likely using their desktop or laptop.
“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,” said Anna Bligh, ABA Chief Executive Officer. “Designed to be interactive and easy to navigate and update, the site helps explain the current state of our payments system in Australia.”
