27 June 2024
Australia’s digital banking boom is continuing with payments by mobile wallets surging by 35 per cent in the last year alone, according to a new report released today by the Australian Banking Association.
The 2024 ‘Bank On It’ Report shows that in the last year alone customers made $126 billion in payments with their mobile wallets, overtaking total ATM cash withdrawals ($105 billion) for the first time ever.
Other key findings in report:
- 18-fold increase in the value of mobile wallet transactions since 2019
- customers interactions with their bank have skyrocketed by 37 per cent in the past four years.
- value of transactions made by cash have reduced to 7.5 per cent
- banking branch interactions fell by 47 per cent between 2019 and 2023
- Australia’s branch density is still higher than the OECD average at 19 bank branches per 100 000 adults.
ABA CEO Anna Bligh said customers were shifting to convenient digital banking channels at unprecedented rates with 99.1 per cent interactions now being made online or via apps.
“Australians are going digital in all aspects of their lives and banking is no exception,” Ms Bligh said.
“We are in the midst of a digital banking boom in this country.
“Australians are interacting with their bank more than ever before thanks to the ease and convenience of digital banking. They are banking whenever and wherever it suits them.
“With this surge in payments through mobile wallets, it’s critical these transactions are subject to the same oversight and consumer protection laws as the rest of the payments system.
“That’s why the ABA supports upcoming legislation to ensure Australia’s payments regulatory framework remains fit-for-purpose and covers new entrants into the market.”
Ms Bligh said whilst Australians continue to embrace easy and convenient digital banking offerings, banks will continue to support those who still prefer to use cash and face-to face banking services.
“This report shows that Australians are using less and less cash, but we’re not about to become cashless anytime soon,” Ms Bligh said.
“Banks still maintain a strong branch network, with Australia still having a higher branch density than the OECD average, complemented by the availability of face-to-face services at over 3500 Bank@Post locations around the country.”
The ABA’s 2024 ‘Bank on it’ report can be accessed be here.
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