Not so frugal Aussies tipping their friends: Transferring friends and family money

Mozo found 47% of Aussies are rounding up and tipping their friends when settling debts

14 September 2021

  • Almost half (47%) of Aussies are rounding up to the nearest dollar or next multiple of five, resulting in tipping their friends and family when transferring money
  • 48% of Aussies are more frugal, transferring their friends and family the exact amount of money owed
  • 16% of those surveyed immediately transfer funds when they are still out, 18% when they get home, and 8% wait till they are reminded or often forget to transfer

New research from has provided insights into Australians' money transferring habits, with the country divided on how they like to repay their pals. 

“In the age of digital banking, the days of using cash to cover your balance are long gone. Instead, instant online transferring apps and bank transfers rule,” says Tom Godfrey, Mozo Spokesperson. 

While digital banking means that it's now easier than ever to settle debts to the exact amount owed, surprisingly almost half (47%) of people actually throw in a tip, either rounding up to the nearest dollar or five dollar equivalent when paying friends or family back.

"How the tables have turned. It used to be that the friend who was left paying the bill was always the one who was left out of pocket but it seems that now, it could end up lining your pockets instead.”

While it might not seem like a lot of money when you are rounding up a few cents here and  there, if you split bills often it can quickly add up. For example, if you were to go out for a $26.40 lunch once a week and round up to the nearest dollar, you would be tipping your friend 60 cents or $31.20 a year. In the same scenario, rounding up to the multiple of five ($30.00) you would be giving away $187.20 a year.

Not everyone is into tipping their pals, 48% of Australians prefer to be more frugal when paying off their debts, transferring the exact amount.

Mozo’s research revealed that 16% of Aussies transfer money immediately whilst they are still out, and almost a fifth (18%) like to send the money when they get home. Almost a tenth of us (8%) are more forgetful, often waiting to be reminded to transfer or failing to transfer at all. 

“Chasing up our forgetful friends is never a fun task, often making us feel stingy or awkward, but with so many options to choose from, there's no excuse for not staying on top of our debts with friends,” says Godfrey. 

“From transferring through a third party service like Beemit or Paypal, to linking your bank account to your phone number using PayID, sending your mates money has never been easier.” 

The Reserve Bank of Australia’s 2019 Consumer Payments Survey revealed mobile and app based money transfers grew 30% between 2013 and 2019, with the increase in the use of technology for transfers being driven by younger age groups. 

Mozo’s top tips for recouping funds from friends:

  • Register your mobile number or email address as a PayID to make sending and receive transfers easier
  • Keep track of money lent or borrowed with bill splitting apps like Splitwise to ensure debts are being fairly distributed 
  • Send reminders to your friends and request money through apps like Beemit to encourage those forgetful friends to pay you back 


Notes: Mozo commissioned a nationally representative survey of 2,862 Australians conducted by Researchify between 20 May 2021 - 1 June 2021. Respondents were asked to respond to all answers that applied to them, percentages will equal more than 100%.