A new study by data and analytics company GlobalData has shown 34.1% of Australians who make online purchases, use alternative payment methods such as mobile and digital wallets. A study called the Financial Services Consumer Survey has also found that 50.6% of Australians use payment cards for e-commerce shopping.
The study was conducted in the second quarter of 2023, with 50,000 respondents across 40 countries.
Why more Australians prefer to pay with cards
GlobalData found that consumers prefer credit and charge cards. This is as extra benefits are offered like interest free installment payment options, reward programs, discount and cashback. Cash payments and bank transfers remain the less popular option to pay for online shopping.
According to Statista before the COVID-19 pandemic, card payments dominated the consumer payment transactions in Australia. In 2019 the share value of card payments was set at around 63%. The usage of cash saw a rapid decline.
The use of card payments have been steadily increasing since 2007. Australia is steadily moving closer to becoming a cashless society.
Why many Australians prefer to pay with their mobile and digital wallets
More than a third of Australians use alternative payments for their preferred online shopping. They use popular brands like Apple Pay and PayPal.
It was found to be largely driven by Buy Now, Pay Later solutions, like Afterpay, Zip and Klarna.
There is a growing popularity of alternative payment solutions, especially among the youth. GlobalData is predicting that this trend will further accelerate a shift away from card payments over the next five years.
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