Australians are embracing fintech as they move away from traditional payment solutions: Research
Australian appetite for fintech services is on the up, with non-bank contactless or card-less mobile payment solutions now being used more than bank-owned payment solutions, according to recent research from market research company Roy Morgan.
The Roy Morgan Digital Payment Solutions Currency Report, which is based on more than 50,000 consumer interviews, suggests fintechs, including startups, are taking market share from incumbents, albeit slowly.
While 6.4% of people interviewed said they had used bank-owned digital payment solutions within the past 12 months, 6.5% had used non-bank solutions such as Apple Pay or Google Wallet.
Further, 6% said they had used pay-later startup Afterpay within the past year.
Some 94% of Australians said they are aware of at least one digital payment solution, and 72% had used a solution within the past 12 months.
While the survey highlighted solutions provided by tech giants such as Apple, Google and PayPal, it highlights a changing attitude to payments and banking technology that could pave the way for challenger banks and fintech startups.
Australia has already produced high-profile fintechs like Afterpay and AirWallex, which secured the biggest raise of 2018 so far in July with $109 million in funding, but it’s also seeing a trend in new personal finance management startups such as bill-payment solution Gobbill, personal finance management platform Frollo and pocket-money management app Spriggy.
The finance sector is also producing a spate of emerging challenger banks including Xinja, 86 400, Judo Capital and Volt Bank — the first to have been recognised as an authorised deposit-taking institution by the Australian Prudential Regulatory Authority (APRA).
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