“Tap and go” to replace credit and debit card purchases under $100 by 2020
IBISWorld has tipped Visa payWave and MasterCard PayPass “tap and go” payments will replace traditional physical credit and debit card payments by 2020 for transactions under $100.
However the Australian research company said the prospects for credit and debit cards are still “rosy”, thanks to an increase in the number of Aussies shopping online with their plastic. Mozo advises Aussies to always search the credit card market for an online friendly card.
Will we see a cashless society anytime soon? The research showed cheque and cash payment options have seen a decline of -9.8% and -1.4%, compared to contactless credit and debit card purchases that have seen an annualised transaction growth of 6.6% and 14.2% respectively over the four years through 2013-14.
IBISWorld general manager Dan Ruthven said the way Australians pay has been changing for some time. “For generation X and the baby boomers, a chequebook is fondly remembered as the most popular of payment options. As more retail outlets, personal banking services and corporate purchases have moved to electronic payment methods, cheques have faced certain demise.”
“In the coming years, contactless payments and paying using a mobile phone will begin to replace the standardised plastic cards we've widely used since the 1980s," said Ruthven.
As contactless payments increase in popularity, more providers are introducing their own version of the digital wallet - Apple’s Passbook, Amazon Digital Wallet, Commonwealth Bank Tap and Pay, Coles Mobile Wallet - possibly the next step for purchases under $100. Read Mozo's tell all digital wallet guide here.