The state of payment platforms: Aussies can’t get enough of mobile wallets

someone paying with a mobile wallet on a tap and pay digital payment platform

Remember paying for things with cash? Nowadays, it can feel like a bit of a novelty. When the EFTPOS terminal is down at your favourite cafe, it feels a lot easier to find somewhere else than to scour your pockets for spare change. 

But how often are you even whipping out your physical credit card

The Reserve Bank of Australia (RBA) highlighted the shift away from physical payments in their 2022 Payments System Board Annual Report . Nearly 75% of purchases are made on card, be it debit or credit. Of these, 25% were made using mobile wallets. This has more than doubled from the 10% it was in 2020.

There has also been an upward trend in Buy Now Pay Later payments, particularly in line with the rising cost of living and widening array of payment options. 

What payment platforms are available in Australia?

Not only are there a whole host of payment platforms available in Australia, but new ones are constantly being introduced. 

For example, Live Payments has just launched a new payment platform for small businesses called LiveTap, where bigger contactless payment options may have been inaccessible.

Beyond that, you may have noticed all of the different options available to you at checkout over the past few years. From classic EFTPOS machines to sleek Square pads, phone plug-ins to counter-top tablets, tapping your card looks different than it did just a few years ago.

If you do opt to use a mobile wallet, you’re spoilt for choice. Options vary depending on the make of your device (Apple Pay, Google Pay, Samsung Pay, etc) or whether you prefer your payments wearable

Almost all banks will offer a digital card option for storage in a mobile wallet, including travel money cards and debit cards. Slot them alongside your digital licence and Medicare card, and it’s no wonder they call it a mobile wallet!

Are there any risks to paying with mobile wallets?

In exchange for the convenience of not having to carry your card, there are some risks to keep in mind with mobile payments.

Though tapping eliminates the fear of card skimming that plagued many of us through the early 00s, it isn’t without risk. If you wouldn’t pay somewhere by inserting your card, you probably shouldn’t be tapping it either.

The Consumer Owned Banking Association (COBA) found that tap-and-go cashless payment methods were a driver of risky financial behaviour, especially in those already struggling financially.

Their use for small payments can also make transactions difficult to track, meaning that fraudulent transactions can easily slip under the radar when it comes time to review your card statement. It’s important to stay vigilant in reviewing this, as data from the Australian Payments Network shows that 39% of credit card fraud victims were unaware that their cards had been compromised.

Checking your statements will also help you be mindful in your spending. A tap here, a tap there, and a tap here: too many taps really do add up. If you can’t trust yourself to stick to a budget while using a mobile wallet or tap-and-go card, it might be time for the most cruel and unusual tactic of all: going back to cash.

Stay updated on all things tech at our fintech hub. If you’re looking for a new card to add to your digital wallet, start comparing with the table below or check out Mozo’s best credit cards.

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Last updated 14 October 2024 Important disclosures
  • NAB Low Rate Card - Balance Transfer Offer

    Spend with confidence with a low 13.49% p.a. variable purchase rate and 0% p.a. interest on balance transfers for the first 28 months (T&Cs apply). 2% balance transfer fee applies. There’s also up to 55 interest free days on purchases to help you manage your budget better when you make minimum repayments. Minimum credit limit $1,000. No annual fee for the first year (usually $59).

    Purchase rate
    13.49% p.a.
    Balance transfer rate
    0% p.a. for 28 months and then 21.74% p.a. (2.00% balance transfer fee)
    Annual fee
    $59 $0 in the first year
    Rewards program
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  • Citi Rewards - Balance Transfer and Purchases offer

    Enjoy 0% p.a. for 15 months on purchases and balance transfers. Balance transfer reverts to cash advance rate. Earn up to 1 Citi reward Point per $1 on eligible transactions. Access up to 3 months complimentary International Travel Insurance and up to 14 days Domestic Travel Insurance with a Citi Rewards Credit Card when meeting eligibility criteria. Apply for a credit limit from $2,000 up to $100,000. This product is provided by National Australia Bank Limited, using certain trademarks temporarily under licence from Citigroup Inc.

    Purchase rate
    0% p.a. for 15 months then 21.49% p.a.
    Balance transfer rate
    0% p.a. for 15 months and then 22.24% p.a.
    Annual fee
    $199
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  • Apply By 14 Jan 2025
    American Express Qantas Ultimate Card

    Receive 50,000 bonus Qantas Points when you apply online by 14 January 2025, are approved, and spend $3,000 on eligible purchases on your new Qantas American Express Ultimate Card within the first 3 months of your approval date. T&Cs apply. Available for new American Express Card Members only.

    Purchase rate
    23.99% p.a.
    Balance transfer rate
    No current offer
    Annual fee
    $450
    Rewards program
    Qantas Frequent Flyer
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  • Citi Clear Credit Card - Balance Transfer Offer

    0% p.a. for 24 Months on balance transfers. 1.5% balance transfer fee applies. Rate reverts to cash advance rate. $49 annual fee in the first year, reverts to $99 thereafter. Access complimentary insurance for eligible products purchased with your Citi Clear Credit Card, including Extended Warranty Insurance and Purchase Protection Insurance. Enjoy a low ongoing variable purchase rate of 14.99% p.a. This product is provided by National Australia Bank Limited, using certain trademarks temporarily under licence from Citigroup Inc.

    Purchase rate
    14.99% p.a.
    Balance transfer rate
    0% p.a. for 24 months and then 22.24% p.a. (1.50% balance transfer fee)
    Annual fee
    $99 $49 in the first year
    Rewards program
    -
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  • Apply By 15 Oct 2024
    American Express Essential® Rewards Credit Card

    Earn up to 80,000 Membership Rewards® points in your first 120 days when you apply by 15 October 2024 and are approved for The American Express Essential® Rewards Credit Card. Earn 20,000 Membership Rewards points for each 30 day period in which you spend $1,000 on eligible purchases on your Card for the first 120 days T&Cs apply. New American Express Card Members only.

    Purchase rate
    23.99% p.a.
    Balance transfer rate
    No current offer
    Annual fee
    $108
    Rewards program
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  • Citi Rewards - Rewards Points Offer

    100,000 bonus Citi reward Points when you spend $5,000 on eligible purchases within 3 months from approval. That’s $400 when you Pay with Points! Earn up to 1 Citi reward Point per $1 on eligible transactions. Access up to 3 months complimentary International Travel Insurance and up to 14 days Domestic Travel Insurance with a Citi Rewards Credit Card when meeting eligibility criteria. Apply for a credit limit from $2,000 up to $100,000. This product is provided by National Australia Bank Limited, using certain trademarks temporarily under licence from Citigroup Inc.

    Purchase rate
    21.49% p.a.
    Balance transfer rate
    No current offer
    Annual fee
    $199 $99 in the first year
    Rewards program
    Citi Rewards Program
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    Details

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