Rising digital wallet adoption and falling branch visits underline shift in banking habits

couple-paying-with-digital-wallet-at-cafe

Australians are increasingly turning away from traditional banking and payment methods in favour of digital alternatives according to a new analysis from the Australian Banking Association (ABA).

The ABA’s analysis, which was based on a survey of over 2,000 people conducted by RFi Research throughout 2021, found that less than 20% of Australians now prefer to conduct their day-to-day banking in a branch. In fact, 72% of survey respondents admitted that they hadn’t visited a branch of their main bank at all during the month of August.

Instead, the vast majority of Australians (over 80%) are electing to do everything from checking their bank account balances to transferring money either via online banking or a banking app.

Cash use is also on the decline. According to Reserve Bank research, cash accounted for 69% of retail payments in 2007 before dropping to just 27% by 2019. And this trend has been hastened further by the pandemic, with both cash use and ATM withdrawals having fallen even more.

"COVID-19 accelerated trends in our society and changed the way we live our lives,” said chief executive of the ABA, Anna Bligh.

“Working from home will forever be more prominent within the workforce, we have steered away from using cash and as a result are seeing an increase in card and technology payments and the existing trend of doing banking online instead of in a branch has only continued.”

It’s not just cash that is becoming less relevant though, as a small, but growing number of Australians are ditching their wallets altogether. One in ten said that they leave their wallets at home, preferring instead to pay with digital wallets on their smartphones - up from just 4% in 2019. 

Overall, 37% of Australians with a smartphone now use digital wallets like Apple Pay, Google Pay and Samsung Pay to make payments, which is a rate that has more than doubled since March 2020. 

This increase has likely been helped in recent years by the rising number of Australian banks that provide digital wallet integration, with close to 90% of the transaction accounts being tracked in the Mozo database now offering at least one digital wallet option.

% of transaction accounts offering
Apple Pay83%
Google Pay73%
Samsung Pay52%

And with the anticipated rollout of eftpos Australia’s eQR payment system - which allows payments to be made via QR code - before the end of the year, it’s likely that even more Australians will be reaching for their smartphones to pay in the future. 

RELATED: The new ‘tap and pay’: Launch of eftpos QR payment system just around the corner

Ready to find an account that comes equipped with the latest digital payment options? Check out the transaction accounts in the table below, or head on over to the Mozo bank account comparison hub for even more options.

Compare transaction accounts - last updated 28 March 2024

Search promoted bank accounts below or do a full Mozo database search. Advertiser disclosure
  • Spend Account

    $0.00

    Apple Pay, Google Wallet, PayID, Samsung Pay, Fitbit Pay, Garmin Pay

    0% p.a.

    No monthly fees and no charges for overseas or online payments from ubank. Stay one step ahead with ubank’s spending insights and bill prediction. Apple Pay and Google Pay compatible. Deposits guaranteed up to $250K per customer.

    Compare
    Details
  • Mozo Expert Choice Badge
    Everyday Options

    $0.00

    Apple Pay, Google Wallet, PayID

    0.01% p.a.

    An easy, everyday banking account packed with flexible options to help you spend, budget & save better. $0 monthly account keeping fees & option to add up to 9 sub-accounts.

    Compare
    Details
  • Orange Everyday

    $0.00

    Apple Pay, Google Wallet, PayID, PayTo

    0% p.a.

    The everyday bank account that could pay you for paying bills. Get 1% cashback on eligible utility bills (up to $100), $0 ING international transaction fees, and up to 5 rebated ATM withdrawals a month here or overseas (T&Cs apply)+ no monthly fees. Winner of the Mozo Experts Choice Awards 2023 for Exceptional Everyday Account.^

    Compare
    Details
  • Everyday Global Account

    $0.00

    Apple Pay, Google Wallet

    0% p.a.

    No overseas ATM fees & up to 10 currencies in one account. Switch between currencies instantly 24/7 wherever you are using the mobile app. Receive 2% Cashback on eligible tap and pay transactions under $100. Mozo's Experts Choice 2023 winner for Exceptional Everyday Account.^

    Compare
    Details
  • Mozo Expert Choice Badge
    Carbon Insights Account

    $0.00

    Apple Pay, PayID, Google Pay

    0.01% p.a.

    An online-only transaction account with carbon insights available through the Suncorp App. $0 monthly account keeping fees & option to add up to 9 sub-accounts.

    Compare
    Details
  • Glide Account

    $0.00

    Apple Pay, Google Wallet, PayID, Samsung Pay, FitBit Pay, Garmin

    0% p.a.

    Unlimited free internet transactions. Super fast transfers & use Apple Pay, Google Pay and Samsung Pay. No account keeping fees. Access Any Major Bank & MyState Bank ATM Fee-Free.

    Compare
    Details

^See information about the Mozo Experts Choice Bank Account 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.