Digital and plastic payment methods are surging to the fore in Australia as cash gives way to more convenient alternatives. Credit and debit cards surpassed cash as Australia’s top payment method in 2016, propelled in part by the growing popularity of contactless: 4 in 5 consumers are using contactless cards every week as of 2017. New digital payment options are catching on too as mobile wallet popularity takes off at banks such as ANZ. But there’s still room for noncash payments to grow further: Peer-to-peer (P2P) payments are still made largely with cash, and e-commerce makes up only 7% of total retail payments. Looking ahead, new government initiatives, combined with domestic and international entrants, are set to pave the way for the next decade of payments innovation in Australia.
Noteworthy Australian Payment Providers
When selecting notable providers, Business Insider Intelligence looked in key areas of payments in Australia, including banking, contactless and mobile payments, bill pay, and retail payments, for firms making meaningful and noteworthy innovations. Though there are four major Australian banks, as referenced throughout the report, CommBank is highlighted because it holds the largest share of the market. Some players are larger and more established (identified as incumbents), while others are upstarts challenging for a larger share of the space. All of the firms are leveraging technology to streamline payment innovation for consumer-facing, business, or global payments.
Commonwealth Bank of Australia (CommBank). CommBank is the largest of the four major banks in Australia, with 16.6 million people (66% of the population) using its services, 6.5 million of whom use its mobile app. The bank provides a wide array of digital offerings: It supports Samsung Pay and Google Pay as well as its own Tap & Pay wallet; enables wearable payments through partnerships with Fitbit and Garmin; offers a youth money [...]