The Reserve Bank of Australia’s triennial Consumer Payments Survey (CPS) studied information on close to 17,000 daily payments made by over 1500 participants during a week. The survey showed that cards were the most recurrently used means of payment, superseding cash for the first time, mainly attributed to the increasing demand of contactless tap-and-go transactions. Results from the survey showed that 52% of payments are now via card as compared to just 37% by cash.
“This outcome isn’t surprising, given the digitally savvy nature of Australian consumers and the fact that penetration of digital point-of-sale terminals and contactless card payments in Australia are among the highest in the world.”
– Fintech Australia CEO Danielle Szetho.
According to the RBA, despite these trends, cash still accounts for a significant share of consumer payments and is heavily utilized by some segments of the population. Fintech Australia has high hopes in the incoming New Payments Platform to further displace cash and build the fundamentals for upcoming innovation.
This observation is consistent with RFi Group data which says that debit card payments during a typical month are highly used by mainly millennials aged 18-34. However, cash still accounts for a large share of the total payment methods especially amongst the older population.