The coronavirus pandemic has pushed more Australians to use their phones and smartwatches for purchases.
New data from financial broker firm Savvy shows that 46.5% of respondents have a digital wallet, and it’s only a matter of time before the take-up is as ubiquitous as smartphones themselves.
The survey polled 1,003 Australians on their daily payment habits. The results showed that almost half use a digital wallet, or credit cards, and payment instruments stored on a smart device such as a smartphone.
Of those who use a digital wallet, 43.3% said they use the wallet “most of the time” and 15.9% said they always used the wallet. 30.9% said they used their digital wallets some of the time.
Cash is coming a distant third to electronic alternatives with only 18.1% saying they used cash as their primary payment method. 35.8% used EFTPOS and 46.2% used Paywave or Tap and Go.
- 47% of Australians Prefer Paying via Digital Wallet - Survey
- Of those that use a digital wallet almost two-thirds use it as their preferred payment method
- Only 18.1% of respondents use cash on a regular basis
- Most have had their digital wallet for at least one year
- 2% (of 1003) respondents said they started using a digital wallet since the beginning of 2020
- 3% said they started using a digital wallet within the past six months
Digital wallets are a relatively new phenomenon in the marketplace.
51% have used digital wallets for at least six months and as long as two years.
A quarter (25.3%) have used digital wallets for more than two years.
20.2% of 1003 respondents said they started using a digital wallet since the beginning of 2020, while 7.3% of this total began using a digital wallet within the past six months only.
An overwhelming majority (87.6%) said they started using a digital wallet for convenience.
This hasn’t surprised Managing Director of Savvy and financial technology advocate Bill Tsouvalas.
“Digital wallets are simply more convenient.
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.”
Australia will be getting a QR code payment system much like the contact tracing regimen in many states.
Set up by EFTPOS, the company is currently conducting trials and a rollout is expected by 2022.
“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,”