More Australians Want to Pay by Smartphone

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A new survey of Australian consumers shows spending patterns are changing with one in five respondents saying they would like to eliminate cash altogether.

More than a third of Australians say they are carrying less cash in their wallets than they did five years ago and one in five would like to stop carrying cash altogether if it was practical to do so, according to a study just released by Visa.

Visa’s country manager Australia, Vipin Kalra, said the study confirmed spending patterns are changing, with a growing preference for using cards and high levels of consumer interest in using smart phones to make payments.

“Nearly one in four Australians today carry only $20 or less in their wallet, and 22 percent say they would like to eliminate cash from their wallet altogether,” Mr Kalra said.

“At the same time, the survey shows consumers are ready to embrace new ways to pay such as mobile payments, and this will have clear implications for the way retailers do business in the future.”

The survey showed 35 percent of consumers currently own or regularly use a smart phone, and another 11 percent said they intended to buy one in the next 12 months.  Of the respondents who had or intended to buy a smart phone, 60 percent said they would be interested in using their phone to make contactless “wave and go” payments.

Mr Kalra said this would allow consumers to wave their phone to pay, as well as provide them with opportunities to personalise their shopping experience by opting-in to receive money-saving discounts or promotions from participating merchants, directly to their phone.

“It’s clear that payments are evolving to provide consumers with more choice, more convenience and a more engaging purchasing experience,” Mr Kalra said.

The survey “Australian Consumer Spending and Attitudes to Payment Systems” was conducted by UMR Research.

Additional findings include:
41 percent of women are carrying less cash than they did five years ago, while only 15 percent said they carry more.
24 percent usually carry $20 or less in their wallet
Australians are embracing online shopping with one in five shopping online at least once per week.
Over half of those surveyed also revealed they often go online to compare prices before making their purchasing decision.

Article by Grant Arnott

Grant Arnott is the editor and publisher of Power Retail. Other hats include Content Manager for the Online Retailer Conference, Program Director for the Online Retail Industry Awards, Global Head of The Media Pad Pty Ltd, and adoptive father of a fast-growing Golden Retriever. Grant has a specialist business publishing background spanning more than a decade, and contributes regularly to a multitude of print and digital business media.

One Comment

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  • Chris Morley
  • 1st August

  Google Wallet in the US is leading the way with this technology – only a matter of time before it arrives here – good to see new technologies that make it easier for consumers to buy coming to our shores. Interesting linking this to online shopping, i purchased from Coles on the weekend – spent less than $30 and didn’t need to PIN or sign – seems that online retailing is probably more secure and safe than traditional buying these days.

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