Australians embrace digital banking as digital wallet use surges

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The increased use of digital wallets is the standout statistic from the latest report published by the Australian Bankers’ Association (ABA) on consumer trends. 

According to the ABA, more than four billion payments were made via mobile wallets in the last year, which is 11 times more than the 353 million ATM cash withdrawals which were valued at A$106bn. 

Digital banking interactions have increased by 70% since 2019 while the value of mobile payments has increased 23-fold in the same time period including a 28% increase in the last year alone. 

Meanwhile ATM cash withdrawals and branch banking have continued to decrease with mobile wallet transactions overtaking ATM withdrawals in 2023. 

According to ABA chief Anna Bligh, the statistics show Australian consumers’ “overwhelming appetite for speed and convenience”. 

“We are undergoing a massive transformation in how people bank in this country,” said Bligh. “Making payments with your phone is also now the norm for millions of customers. “Mobile wallet usage continues to surge and is closing in on the use of physical cards or cash.”

Yet despite the clear preference for digital banking channels, Bligh and the ABA insist that there remains a place for the use of cash.  

“Digital is now the norm, yet banks continue to invest in face-to-face banking options for Australians who want to use them,” said Bligh. “Australia’s banks maintain a denser commercial branch network than comparably urbanised OECD peers.”

The report comes six months after the ABA called for the Australian government to introduce regulation for the country’s rapidly growing mobile wallet market. 

“With mobile wallets becoming a dominant force in Australia’s payments architecture – it’s only fair that global tech companies are subject to the same oversight and consumer protection laws as the rest of the payments system,” said Bligh back in February.