Mobile payments – Australia mobile payments steadily grow, as cash crashes

Australia transitions toward a walletless economy as bank apps and digital wallets disrupt traditional cash payments.

David Kennedy · Venture Insights1 May 2020Period: May 20204 min read

Last updated 8 June 2026

27%↓

Consumer payments made in cash (2019)

A$9.5bn↑

Annual card transaction revenue potential for issuing banks

Locked

Companies covered:AppleGoogleSamsungPayPalSquareBeemDeloitteReserve Bank of Australia

Abstract

This report analyzes the rapid shift in the Australian payments landscape from physical cash to mobile-app based solutions. Based on a survey of 1,016 consumers, it finds that 37% of Australians now use smartphones for weekly payments, while cash transactions have declined from 37% in 2016 to 27% in 2019. The analysis explores the competitive dynamics between incumbent bank apps and tech giants like Apple and Google, forecasting a transition to a walletless economy by 2025.

Key Takeaways

Weekly mobile payment usage in Australia has grown to 37% in 2020, up from 32% in 2018.
Cash transactions have plummeted from 69% in 2007 to just 27% in 2019, with a projected floor of 14% by 2025.
Incumbent banks maintain a lead in the app space with 41% market share, though Apple Pay (27%) and Android Pay (17%) are gaining ground.

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Frequently Asked Questions

The transition is accelerating, with cash transactions dropping from 37% in 2016 to 27% in 2019. This shift supports a forecast that Australia will reach a walletless economy by 2025.

Not yet, as 41% of mobile payers still use their bank’s proprietary app, compared to 27% for Apple Pay. However, tech giants dominate the 25-34 age demographic, where 66% of consumers use Apple, Android, or Samsung Pay.

Growth has hit a temporary plateau, with 43% of respondents reporting they have never used mobile payments, a figure unchanged over the last two years. Despite this, 37% of Australians now use smartphones for payments at least once a week.

The Australian payments industry currently generates A$9.5bn in annual service revenue. This entire pool is at risk of disruption as consumers migrate from physical cards to digital wallet ecosystems.

Mobile payments – Australia mobile payments steadily grow, as cash crashes

Abstract

Key Takeaways

Frequently Asked Questions

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