Aussies are now making far more mobile wallet payments compared to ATM cash withdrawals and it highlights how payments are drastically changing. (Source: Getty) <\/p>\n
Mobile wallet payments<\/a> have continued their meteoric rise in popularity in Australia, according to new data<\/a>. These payments are contained on your smartphone or smartwatch, which stores all the necessary information from your debit or credit cards<\/a> to pay for goods and services.<\/p>\n The Australian Banking Association (ABA) revealed people across the country made four billion payments through mobile wallets last year, worth a “staggering” $160 billion<\/a>. That’s 11 times more payments than the 353 million ATM cash withdrawals<\/a>, which were worth $106 billion.<\/p>\n ABA chief Anna Bligh<\/a> said this disparity highlighted what’s happening in the Australian payments landscape.<\/p>\n \u201cWe are undergoing a massive transformation in how people bank in this country,\u201d she said.<\/p>\n \u201cMaking payments with your phone is also now the norm for millions of customers.<\/p>\n “Mobile wallet usage continues to surge and is closing in on the use of physical cards or cash.”<\/p>\n She added that digital banking has become so popular because of its speed and safety.<\/p>\n Do you have a story? Email stew.perrie@yahooinc.com<\/p>\n Mobile wallet payments have been around since the early 2000s, but they have become ubiquitous thanks to improving technology and the pervasiveness of smart devices.<\/p>\n They now come in the form of the Apple and Google Wallet, as well as Venmo, WeChat Pay and others.<\/p>\n If you dashed out to the supermarket or pub without your wallet, you’d still be able to pay for everything with your phone or watch.<\/p>\n You just tap your device onto the payment terminal as if you had your debit or credit card.<\/p>\n The value of mobile wallet payments in Australia has grown 23-fold since 2019.<\/p>\n Last year alone, there was a 28 per cent increase.<\/p>\n The 2023 financial year was the first in which mobile wallet payments overtook ATM withdrawals in value.<\/p>\n The value of ATM withdrawals has largely plateaued in recent years; however, mobile wallet payments continue to set new records.<\/p>\n The ABA said this huge rise in mobile wallet payments comes at a time when 99.3 per cent of customer-bank interactions now happen via digital channels, and bank branch interactions have plummeted 51 per cent since 2019.<\/p>\n Cash withdrawals have also fallen by an average of 9 per cent every year since 2019 and is now outpacing the decline of ATMs scattered around the country.<\/p>\n Story Continues <\/p>\n Australia is keeping pace with the rest of the developed world in bank branch density declining.<\/p>\n We have fewer than 20 commercial bank branches per 100,000 adults, which is just above the OECD and New Zealand average.<\/p>\n Despite this trend, the banking CEO insisted there will always be a place for physical money.<\/p>\n “Banks continue to support those who still prefer face-to-face services with over 3,300 physical branches and over 3,400 Bank@Post outlets available across Australia,” she added.<\/p>\n “Banks are also supporting access to cash for those Australians who still wish to use it.<\/p>\n \u201cAs we accelerate into the future, Australian banks are ensuring customers that rely on more traditional ways of banking are not left behind.\u201d<\/p>\n Get the latest Yahoo Finance news – follow us on Facebook<\/a>, LinkedIn<\/a> and Instagram<\/a>.<\/p>\n New ABA data has revealed how quickly mobile wallet payments have overtaken ATM withdrawals. (Source: ABA) <\/p>\n