A recent survey by money.com.au indicates that while the trend of using mobile wallets for payments is on the rise, a significant majority of Australians still prefer to carry physical debit and credit cards. The research revealed that 73% of Aussies are reluctant to part with their cards, even though 24% indicated they rely solely on mobile wallets for purchases.
Younger generations are more inclined to embrace mobile payment technologies, whereas older Australians tend to cling to traditional payment methods. According to finance expert Sean Callery, having a physical card serves as a safety net. He pointed out that this attachment stems from habit and trust, especially when faced with situations where their phones might malfunction. Money saving expert Joel Gibson echoed this sentiment, comparing the necessity of a card to insurance. He noted that practical scenarios, like surfing or needing to hand a card to a child, make carrying a physical card more practical than relying entirely on smartphones.
The survey highlighted generational differences: 84% of Baby Boomers, 75% of Gen X, and 66% of Millennials said they wouldn’t give up their physical cards, despite the increase in mobile wallet transactions, which now account for 45% of all card payments—a rise from 39% the previous year. Projections suggest that mobile wallets could dominate all retail card payments by 2032, yet Gibson mentioned that such predictions might be overly optimistic, arguing that as long as cash remains available, a small fraction of transactions will continue to involve cash or cards.
Interestingly, only 3% of survey participants stated they still use cash for purchases. Gibson explained that the shift towards digital payments is largely driven by businesses seeking to minimise costs associated with handling cash transactions. This trend emphasises a significant lesson for consumers regarding payment methods, as businesses favour whichever option is most economical for them. He warned that if consumers are not careful, this push might lead to payment options that aren’t necessarily the cheapest for them.
In summary, despite the growing acceptance of mobile wallets, the majority of Australians still prefer the security and familiarity of physical cards, highlighting a balanced coexistence of traditional and modern payment methods.