81% of Aussies will take advantage of EOFY sales, according to Mozo research
If you’re prepping your bank account or credit card for a big end of financial year shopping expedition, you’re not alone. A new Mozo study has found 81% of Australians are planning to hunt for discounted computers, software, office furniture and cars before the tax doors close on 30 June.
The survey of more than 2,000 Aussie shoppers found 45% have been stocking up their savings accounts to make EOFY purchases, with a quarter of the group putting away between $1,500 to $6,000 for the sale spree.
When asked about the payment methods they’d use to make these purchases, 46% plan to use debit cards and 35% will use cash to pay up front. For those putting their purchases on credit, 29% will pull out their credit cards and 24% will turn to Buy Now Pay Later platforms.
The significant presence of cash in this payment method breakdown is somewhat unusual. The RBA has recorded a consistent decline in cash transactions – down to 23% of in-person transactions in 2021 from 32% in 2019.
Talking on The Finance Burrito Podcast this week, Mozo’s Senior Research Analyst Mitchell Pollard said convenience really is key when it comes to using digital payment methods.
However, he said “cash exists as the ultimate privacy tool” for shoppers who don’t want to be targeted with advertising or have their spending data used in other ways.
“With every transaction you make, you can assume it’s being tracked by someone, whether that’s your own bank with a simple transaction history or a supermarket chain logging your purchase habits so they can build their own customer insights,” Pollard said.
Mozo spokesperson Tom Godfrey said this trend may also point to an increase in savings. Current Australian Bureau of Statistics (ABS) figures show the household savings ratio jumped in the June quarter last year to 22% and is now around 11.6%.
“With household savings reaching record levels over the past year it’s clear Aussies are in a great position to tap their debit cards or reach into their wallets for cash this sales season,” Godfrey said.
If you’re considering an EOFY splurge, make sure you keep the rest of your stash safe and earning interest with a high interest savings account like one of the below:
^See information about the Mozo Experts Choice Savings Account Awards
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