Australia’s mobile wallet market is poised for a significant leap, with projections suggesting the value of transactions will surpass $100 billion in 2024. According to GlobalData, a leading data and analytics company, this anticipated growth reflects a 42.2% increase in mobile wallet transactions, bringing the total to AUD209 billion ($138.8 billion). This shift underscores the accelerated consumer transition towards non-cash payment methods.
In 2023, mobile wallet payments in Australia surged by 58%, reaching AUD146.9 billion ($97.6 billion). Despite trailing behind Asian giants like China and India, Australia’s mobile wallet market outperforms other developed countries such as Taiwan, Singapore, and Hong Kong. Poornima Chinta, Senior Banking and Payments Analyst at GlobalData, noted that while mobile payments are gaining momentum in Australia, widespread adoption is still on the horizon. Compared to the robust contactless card market, mobile wallet usage remains lower, but increasing consumer preference for mobile payments, the presence of major brands like Google Pay, Apple Pay, and Samsung Pay, and the development of QR-code payment infrastructure are expected to drive growth.
The Australian Banking Association reports a rapid rise in mobile wallet registrations, from just over two million cards in 2018 to 15.3 million in 2022. This growth spans all age groups, particularly younger consumers. The Reserve Bank of Australia’s 2022 Consumer Payments Survey shows nearly two-thirds of respondents aged 18-29 used mobile payments in 2022, up from less than 20% in 2019.
The introduction of international mobile payment solutions such as Apple Pay and Google Pay has significantly raised consumer awareness and adoption. Samsung’s launch of the upgraded Samsung Wallet in January 2023 further boosted this trend. The new version integrates Samsung Pay’s functionalities with additional features like storing and accessing digital keys, boarding passes, and essential documents such as ID cards and driving licenses.
The growing preference for contactless mobile payments has encouraged companies to innovate with mobile POS solutions. Apple’s Tap to Pay, launched in May 2023, allows businesses to accept in-person contactless payments via compatible iPhones, simplifying mobile wallet transactions for both consumers and merchants.
QR code-based payments are also expected to gain traction, reflecting trends in markets like India and China. Australia’s domestic debit network, EFTPOS, introduced the eQR system in May 2022. This allows consumers to make payments by scanning QR codes at merchant stores, with Subway being the first retailer to adopt this service.
Chinta emphasizes that smartphones have become integral to daily life, making consumers more comfortable using them for payments. This comfort and the convenience of mobile wallets are expected to sustain the upward growth trajectory of the Australian mobile wallet market. The market is projected to grow at a compound annual growth rate (CAGR) of 18.3% from 2024 to 2028, potentially reaching AUD408.6 billion ($271.5 billion) by 2028.
The rapid growth in mobile wallet adoption highlights the changing preferences of Australian consumers, who are increasingly embracing digital payments for their ease and efficiency. This trend is reshaping transaction methods and influencing business operations, prompting a digital transformation across various sectors.
As the market evolves, the financial and retail sectors are expected to further integrate mobile payment solutions into their operations. This integration is crucial for meeting consumer expectations and enhancing the overall shopping and payment experience. Ongoing advancements in mobile payment technologies and infrastructure development will likely drive further adoption and usage, setting the stage for a cashless future in Australia.
The rise of mobile wallets marks a significant milestone in Australia’s payment landscape. The rapid adoption and projected growth align with a broader global trend towards digital financial transactions. As technology advances and consumer preferences shift, the mobile wallet market is poised for substantial growth, transforming how Australians manage and spend their money.
This transformation signifies a broader movement towards digital financial solutions, underscoring the importance of staying abreast of technological advancements and consumer behavior shifts. The Australian market’s response to mobile wallets mirrors global trends, where convenience, speed, and security are driving the adoption of digital payment methods.
Australia’s mobile wallet market is on the verge of significant growth, driven by consumer demand, technological advancements, and strategic initiatives by financial service providers. This growth reflects changing consumer behaviors and heralds a new era in the country’s financial landscape, one that is increasingly digital and interconnected. As mobile wallets become more embedded in daily life, they will continue to shape the future of payments in Australia.
