Aussies are ditching debit cards and going digital instead, as Apple Pay and Google Pay begin to take hold
Despite not existing in Australia just a few short years ago, the likes of Apple Pay and Google Pay have exploded in popularity.
Digital wallet payments are now the second preferred payment option for retail therapy in Australia, only beaten by credit cards, according to commerce tech company FIS.
“Much like the rest of the APAC region, Australians are increasingly embracing digital payments, forgoing the more traditional credit-debit card combinations when shopping online, according to our 2019 Retail Global Payments Report,” Asia-Pacific general manager Phil Pomford said in a note issued to Business Insider Australia.
In fact, more than a fifth of all retail purchases last year were digital, while credit cards amounted for more than one in four buys. When it comes to electronics, clothing and footwear bought online, however, eWallets like Apple Pay won out – accounting for 28% of individual purchases.
“eWallets are popular all over the world: from Apple Pay to Google Pay, Visa Checkout to Masterpass, Alipay to WeChat Pay and hundreds of smaller local alternatives,” the report said.
An increasing number of Chinese visitors shopping in Australia could also prove a big driver of growth yet, with apps like Alipay guiding shoppers to retailers that accept it.
Debit cards meanwhile are falling behind at just 17% of the overall spend, while buy now, pay later providers like Afterpay and Zip are still catching up. Classified as ‘eInvoices’ they made up just 4% of the online retail sector. FIS expects this will grow, however, as consumers and retailers alike continue swarming to them.
“Cards and bank transfer facilities such as POLi and BPAY dominate online payments down under, accounting for 60% of eCom transactions,” the report said.
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