Scam-wary Aussies say security comes first when they pay, according to GoCardless

Scam-wary Aussies say security comes first when they pay, according to GoCardless

Almost half of Aussies would try a new payment method if it was more secure

When it comes to payments, security is the concern at the forefront of Australians’ minds, according to new research from YouGov and GoCardless, a global leader in direct bank payment solutions. Over eight in 10 (87 per cent) Australian consumers say the protection of their privacy and data is a leading factor when deciding on a payment method, the highest percentage of any country surveyed in the five-market report.

When selecting their preferred payment method, Australian consumers highlight digital wallets (28 per cent), debit cards (26 per cent), and credit cards (21 per cent) as their top three methods. For e-commerce transactions, one in four (27 per cent) respondents note that their chosen payment method is preferred due to its perceived security.

More Aussies want to leave their wallets at home and will ditch a sale if they can’t pay their way

The research, conducted as a survey of 1,034 consumers in Australia, delves into the payer preferences of the nation and reveals that while Aussies’ trust in credit cards is still high, it is no longer the first preference compared to newer digital alternatives. Slightly higher trust levels are demonstrated for digital wallets (74 per cent) than credit cards (72 per cent). The method with the highest level of trust, selected by 94 per cent of respondents, was paying from a bank account.

Data shows that the preference for digital over plastic payments methods are on the rise. One in four (28 per cent) Aussies want to pay for their online transactions with digital wallets, and 17 per cent say they are more inclined to leave their wallet at home and pay with their phone, according to GoCardless’ State of Pay Report. This jumps to 26 per cent for respondents between the ages of 18-34.

Considering 70 per cent of respondents admit they would abandon their purchase if their preferred payment method was unavailable, businesses that only accept card payments at the checkout could risk losing out as the next generation of ‘phone-first’ consumers increase their purchasing power, hindering the sales growth of Australian businesses.

Australian consumers are also annoyed at having to input payment details themselves, with over half of the respondents (54 per cent) stating they are frustrated when having to manually enter details in an online checkout. State of Pay research also shows that 95 per cent of Aussies do not commonly use manual methods like BPAY.

Aussies are open to new payment methods 

In light of these insights — which point to consumer frustrations with manual payment methods and a clear demand for secure payments — the opportunity for businesses is clear. The research indicates that Aussie consumers are seeking out more innovative ways to pay, such as the new Australian realtime bank pay method PayTo. According to the State of Pay Report, an overwhelming 80 per cent of businesses that are aware of PayTo would like to implement it. Businesses looking to establish a strong point of difference through better, more secure payment offerings would do well to become early PayTo adopters.

Australian consumers are also open to trying new ways to pay if it improves their checkout experience, with increased security once again being their top priority (42 per cent), followed by simplicity (20 per cent).

As new technology rolls out, 35 per cent of Australian consumers say they are likely to use biometric authentication like face ID and fingerprints to make payments in the next 12 months.

Luke Fossett, General Manager of Australia and New Zealand at GoCardless, said, “Our research indicates that an overwhelming proportion of Aussies want payment options that prioritise the security of their data above anything else, and the prospect of secure data and greater trustworthiness would tempt them to try a new payment method.

“Innovative payment options like PayTo meet the desire for secure transactions while also offering simpler and faster checkout experiences. With Aussies often indicating they abandon checkout due to a lack of payment options, it’s important for businesses to recognise the needs of their customers and seize the opportunity to establish a strong point of difference. One way is to implement options like PayTo to cater to a shift in demand for digital, secure payment options.”

The insights into Australia’s paying habits were revealed in a new report, ‘Demystifying Payer Experience’, from GoCardless, which surveyed over 7,000 consumers across Australia, the UK, US, France, Germany, and more than 1,500 business decision-makers in the UK, US, France, and Germany. The report dives deeper into payer preferences, checkout challenges, appetite to try new payment methods and areas of investment for businesses looking to upgrade their payment infrastructure.