Digital payment methods on the rise

Financial tech entrants such as Apple Pay, Android Pay and Google Wallet are beginning to take market share from more traditional payment methods, according to research by Roy Morgan.

Non-bank owned mobile payment systems accounted for 6.5 per cent of total payments for 12 months to June 2018, while bank-owned mobile payment solutions trailed at 6.4 per cent.

“It is already feasible for someone to go about their daily activities without the need for a physical wallet or card,” Roy Morgan chief executive Michele Levine said.

“This is being aided by the growing proliferation of smartphones and wearables with integrated payment technology such as Apple Pay and Google Pay, and an increasing number of financial institutions enabling their customers to make payments with these devices.”

The report found that 93.6 per cent of Australians aged 14 and over know of at least one digital payment solution, while 72.4 per cent have used one in the previous year.

Buy-Now-Pay-Later solutions such as Afterpay, Zip Money and Zip Pay accounted for 6.7 per cent of digital payment usage in the last 12 months, while incumbent online payment platforms such as PayPal accounted for a total of 44.4 per cent.

“One thing is clear – Australians love digital payments and the way we make payments is evolving quickly,” Levine said.

“The solutions being developed by the new market entrants and the incumbents not only help the consumer with a quicker and more convenient way to pay, but provide businesses with rich data on what the consumers are purchasing, how they are purchasing, and where.”

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