Australian consumers are increasingly adopting digital banking services, with a remarkable 99.3% of transactions occurring through digital channels. Notably, A$160 billion in payments were made via mobile wallets.
The latest report from the Australian Bankers’ Association (ABA) highlights the significant rise in digital wallets. Over the past year, more than four billion payments were made through mobile wallets, which starkly contrasts the 353 million ATM cash withdrawals valued at A$106 billion—an 11-fold difference.
Since 2019, digital banking interactions have surged by 70%, with the value of mobile payments increasing 23-fold during the same period, including a notable 28% growth in just the past year. In 2023, mobile wallet transactions have already surpassed ATM withdrawals.
ABA chief Anna Bligh remarks on the statistics, emphasizing the strong demand from Australian consumers for speed and convenience. “We are undergoing a massive transformation in how people bank in this country,” she stated. “Making payments with your phone is now the norm for millions of customers. Mobile wallet usage continues to surge and is closing in on the use of physical cards or cash.”
Despite the clear favor for digital banking, Bligh and the ABA assert that cash still has its place. “Digital is now the norm, yet banks continue to invest in face-to-face banking options for Australians who want them,” Bligh remarked. “Australia’s banks maintain a denser commercial branch network than comparably urbanised OECD peers.”
The report follows the ABA’s earlier call for government regulation of the rapidly growing mobile wallet market. In February, Bligh noted, “With mobile wallets becoming a dominant force in Australia’s payments architecture, it’s only fair that global tech companies are subject to the same oversight and consumer protection laws as the rest of the payments system.”