April 12 2021
The advancement of technology truly amazes as we've replaced a lot of paper money with the use of cards, and now digital wallets on our phone. Perhaps in the future, we won't need anything else but ourselves to to make a payment!" - Ben Crow, Chief Operating Officer
Do you appreciate the fine design of a well-crafted leather wallet?
Well, according to fresh numbers a large chunk of us are ditching stitching and using digital wallets to shop instead.
In fact, online financial broker firm Savvy found that 46.5% of Aussies have a digital wallet on their smartphone to store virtual debit and credit cards.
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Of those that use digital wallets:
- 15.9% use them all the time
- 43.3% use them most of the time
- 30.9% use them some of the time
Currently on the Mozo database, 63 out of 74 credit card providers offer a digital wallet option for customers to make mobile payments. Some of the options include Apple Pay, Samsung Pay, Google Pay, Fitbit Pay, Garmin Pay etc.
But why are digital wallets on the rise?
The answer is simple - it’s convenient.
Savvy found that a massive 87.6% of digital wallet users opt for the method of payment over others because it’s easier.
“Digital wallets are simply more convenient,” says managing director of Savvy and financial technology advocate Bill Tsouvalas.
“Why would you worry about taking a wallet around when you have your smartphone on you anyway? Digital wallets will simplify our day to day carry and can be used for all kinds of contactless payments such as public transport or event tickets.”
These stats come after EFTPOS recently announced that it intends to launch a QR code payments system in Australia by 2022.
In a nutshell, the network will operate by generating an individual QR code which contains transaction details for a customer. Shoppers can then use their smartphone to make a purchase via their digital wallet.
“Digital wallets are not only great for customers but their easy integration into payment systems and retail technology also means business will benefit in the long term,” Tsouvalas says.
Consumers still cool on cash
Remember the feeling of physical money? We wouldn’t be surprised if you don’t!
Savvy’s numbers also showed that as Aussies move more towards digital payments, less are using cash as their primary method of payment.
Only 18% of respondents claimed to use cash the most, compared to other payment alternatives.
As to be expected, EFTPOS and Paywave and Tap & Go came out as more popular options with 35.8% and 46.2% of shoppers using them to pay, respectively.
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Source: Mozo
Fleeting, P. (2021, March 8). Half of aussies reaching for digital wallets over leather. The natural evolution of money | WLTH. https://www.wlth.com/blog/half-of-aussies-reaching-for-digital-wallets-over-leather/