Australian consumers and businesses are at the forefront of adopting payments innovation, with a significant increase in electronic payment methods such as ‘tap and go’, in-app payments, contactless payments online and at point-of-sale. Options to pay include ‘buy now pay later’ services.
The COVID-19 pandemic accelerated the trend toward electronic payments. Use of cheques is now minimal.
New Payment Platform
These innovations have been adopted by financial institutions as well as new payment participants – many of whom are technology focused companies. In many cases, new payment services still rely heavily on payment infrastructure and traditional payment participants, including the new real time payment platform (the NPP).
Australian banks continue to build and invest in payments infrastructure, while providing associated support and customer service.
The way Australians pay for things has changed dramatically since 2007. For example, cash use has dropped from 69% of payments to 27%.
Users rightly expect that when they make a payment, whether this is done through traditional channels or via a new app, their payments will be made in a timely, safe and secure way and their data will be secure. Users have embraced innovation because of trust in the system.
As such, retaining user trust in both emerging products and services, and in the system more broadly, is a prerequisite to payments innovation now and into the future.