How do we pay? Credit cards, PayID and Osko, says RBA

Paying at counter

The latest round of RBA payments data has revealed new trends in consumer spending, with ATM use dropping and Paypal use increasing.

Here are the numbers:

Among the biggest losers in the last year, ATM withdrawals have seen a large decrease over the last 12 months. Although September saw a slight increase of 4% in transactions, ATM withdrawals still saw a 21.4% regression in the preceding year. The value of ATM withdrawals also saw a 16.9% decrease. 

Meanwhile the number of total purchases on Australian-issued cards has remained quite steady, according to the RBA. The 932.8 million transactions across both debit and credit cards in the month of September 2021 was a 0.3% increase on the prior month, and just a growth of 0.01% in the prior 12 months. 

Of those transactions, credit and charge cards saw the biggest decrease in transactions, falling 2.4% in the 12 months to September 2021, although the value of those transactions actually grew by 2% on the prior year. Debit cards too saw an increase in spending, with a 1% yearly growth in transactions leading to a 6% growth in transaction value. 

The number of transactions perhaps is more helpful is showing the popularity of these spending methods, whereas the value of purchases is hard to unpack.

New Payment Platform transactions (NPPs), which refers to payments making use of the services PayID and Osko, have seen a large increase in total transactions and their value in the last year. The 84 million transactions using NPPs in September was actually a fall of 0.4% from the prior month, but contributed to a 63.4% growth in the prior 12 months. 

The $90.6 billion that NPP transactions accounted for in the month of September equated to a 2.8% fall on the prior month, although the value of NPP transactions saw a growth of 83.4% in the last year.

Paypal and buy now pay later

In other alternatives, the latest Roy Morgan payments data found that Aussies were using Paypal a record amount during the COVID-19 pandemic. Over 47% of Australians had used Paypal within the last 12 months, reversing a trend of users leaving the service for other alternatives such as Buy Now Pay Later (BNPL). 

The Roy Morgan data also found that more than 78% of Aussies are now aware of BNPL services, although only 3.5 million Australians (16.6%) had used one within the last 12 months. 

There is still a lot of belief in the future of BNPL services, with Silicon Valley tech giant Square entering a $39 billion agreement to purchase industry-leader Afterpay, as an example. And, a number of Aussie banks have begun launching their own 0% interest credit cards in order to compete with BNPL services as the number of transactions on traditional cards fall.

Want to learn more about the future of payments? Check out our piece on the future of credit cards to see how consumer trends are shifting.

Head over to our credit card hub to compare cards, or head to our buy now pay later hub for everything BNPL.

Low interest credits cards - last updated 23 January 2022

Search promoted credit cards below or do a full Mozo database search. Advertiser disclosure
  • Apply By 28 Feb 2022
    Bendigo Bank Low Rate Credit Card

    0% p.a. on purchases for up to 18 months (Reverts to 11.99% p.a). Low annual fee of $45 and no fees for additional cardholders.

    Purchase rate
    Balance transfer rate
    Annual fee
    0% p.a. for 18 months then 11.99% p.a.
    No current offer
    $45
    Details
  • Virgin Money Low Rate Card

    Receive a low 11.99% p.a purchase rate. 0% p.a on balance transfers for the first 15 months (1% BT fee applies). Get tap and pay feature, plus 55 days interest free. Loyal card holders could see annual fee waived in 2nd year (conditions apply).

    Purchase rate
    Balance transfer rate
    Annual fee
    11.99% p.a.
    0% p.a. for 15 months and then 21.69% p.a. (1.00% balance transfer fee)
    $99
    Details
  • Bankwest Breeze Mastercard

    Enjoy 0% p.a on balance transfers for 15 months then 9.90% thereafter. No annual fee for the first year. Limited time only. Other fees, T&Cs apply. New Breeze Mastercard customers only.

    Purchase rate
    Balance transfer rate
    Annual fee
    0% p.a. for 15 months then 9.90% p.a.
    0% p.a. for 15 months and then 9.90% p.a.
    $49 $0 in the first year
    Details
  • Westpac Low Rate

    Enjoy a super low rate of 13.74% with 55 days interest free plus 0% balance transfer for up to 28 months at 1% BT fee. No annual card fee for the first year, $59 thereafter. New Cards only. Offer ends February 24th 2022. T&C's and exclusions apply.

    Purchase rate
    Balance transfer rate
    Annual fee
    13.74% p.a.
    0% p.a. for 28 months and then 21.49% p.a. (1.00% balance transfer fee)
    $59 $0 in the first year
    Details

^See information about the Mozo Experts Choice Credit Card Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.