Australia: Cash is king no more

For the first time, card payments have surpassed cash as Australia’s most frequently used payment method, and it’s all thanks to contactless payments.

According to the latest data released by the Reserve Bank of Australia, the share of payments made by credit or debit cards has doubled since 2007. Back then, cash made up 69 percent of all transactions. Today, however, that figure has dropped down to 37 percent. Meanwhile, card transactions grew from 26 percent to 52 percent over the same period, largely due to the introduction of contactless terminals in 2006. Tap-and-go transactions now make up a third of all point-of-sale payments, which comes with no surprise to RFi Group. According to RFi Group data, the proportion of contactless card owners who make contactless payments more than once per week has increased by 34% since 2014 to 65%.

The trend towards increased card payments also reveals other developments in the payments space, with younger consumers increasingly turning towards debit card usage over credit cards, and an equivalent decline in ATM usage as cash usage declines.


Source: Payments Diary 2017

Upcoming Events
01
Feb
18
UK Business Banking Forum 2018
London, England, United Kingdom
22
Feb
18
Australian Mortgage Innovation Summit 2018
Sydney, NSW, Australia
22
Feb
18
Australian Lending Awards 2018
Sydney, NSW, Australia
See all upcoming events
map4
Subscribe to receive insights delivered straight to your inbox
Latest news, unbiased expert analysis and insights across banking and finance