The digital payments market is experiencing rapid disruption, with non-bank contactless/cardless mobile payment systems now being used by more Australians (6.5 per cent) than bank-owned solutions (6.4 per cent), according to the newly released Roy Morgan Digital Payment Solutions Currency Report.
Fintech market entrants such as Apple Pay, Android Pay and Google Wallet are taking market share from incumbents, in a market where 93.6 per cent of Australians aged over 14 are aware of at least one digital payment solution, and 72.4 per cent have used at least one digital payment solution in the past 12 months.
Roy Morgan’s report, based on more than 50,000 face-to-face consumer interviews, provides a 12 month perspective of how consumers are changing the way they pay for goods and services.
Key findings include:
Michele Levine, CEO, Roy Morgan, said, “One thing is clear – Australians love digital payments and the way we make payments is evolving quickly. 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 it, and where.
“The payment landscape will continue to evolve in the future. We are already seeing innovative new companies, such as Afterpay, changing the way in which people purchase goods that they cannot immediately afford. These ‘buy-now-pay-later’ companies may pose a threat to traditional payment types such as credit cards as well as traditional financial institutions as consumers can, in effect, access a small amount of credit instantly with no documentation.”
Ms Levine predicted that people will come to expect the minimum amount of effort when making a payment and the industry will need to adapt to these changing expectations by providing more innovative and seamless solutions.
“Traditional financial institutions may need to collaborate with Fintechs and other third parties to keep up with the rapidly changing digital payment landscape,” Ms Levine concluded.