Fintechs outpacing banks in digital payments
The digital payments market is experiencing rapid disruption, with non-bank contactless/cardless mobile payment systems now being used by more Australians (6.5%) than bank-owned solutions (6.4%) according to the newly released Roy Morgan Digital Payment Solutions Currency Report.
Fintech market entrants such as Apple Pay, Android Pay and Google Wallet, are taking market share from incumbents, in a market where 93.6% of Australians aged over 14 are aware of at least one digital payment solution, and 72.4% have used at least one digital payment solution in the past 12 months.
Roy Morgan’s report, based on more than 50,000 face-to-face consumer interviews, provides a 12 month perspective of how consumers are changing the way they pay for goods and services.
Key findings include:
• Awareness of newer forms of digital payments is growing rapidly, with 57.3% of Australians aware of ‘tap and go’ payment systems, 39.6% aware of bank-owned mobile payment systems, 46.4% of non-bank tap-and-go systems, and 35.2% aware of the emerging ‘buy-now-pay-later’ payment systems.
• Usage is lagging awareness considerably, with only 11.5% of Australians having used a tap-and-go payment system in the last 12 months, and only 6.7% of Australians having used a buy-now-pay-later digital solution over the same period.
• Two long-established systems still dominate digital payments, with the phone/online BPay service being used by 52.9% of Australians in the past year and the online Paypal service being used by 42% over the same period.
• In the emerging buy-now-pay-later space, 6% of Australians have used the Afterpay service in the past year, with competitors Zip Pay and Zip Money used by 1.4% and 0.6% respectively.
• The most-used bank-owned tap-and-go payments system, from CBA (used by 4.1% of Australians in past 12 months), is still marginally ahead of the most-used non-bank tap-and-go solution, Apple Pay (used by 3.9% of Australians)
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Source: Fintechs outpacing banks in digital payments – Roy Morgan Research
