New data reveals Australia could be solely reliant on mobile wallets within seven years, signalling the end of the bank card.
Reserve Bank of Australia (RBA) data shows the share of mobile wallet transactions rose from 11% to 35% in just three years from 2020 to 2023.
The number of transactions made using physical cards increased from 563 million to 625 million, while mobile wallet transactions jumped from 70 million to 400 million in the same period.
In October 2024, there were over 500 million transactions using mobile wallets in the month alone, totalling over A$20 billion.
This indicates that the use of mobile wallets is growing roughly 43 times faster.
Projections from Money.com.au says that if the current growth continues mobile wallets could account for all retail card payments by 2032.
“Physical cards aren’t obsolete yet, but it’s clear they're losing ground as more people turn to the convenience and security of mobile wallets for everyday transactions,” said Money.com.au’s finance expert, Sean Callery.
“Mobile wallets aren’t just about convenience anymore, they’re quickly becoming the go-to way to pay. Plus, with features like biometric authentication, they give people a real sense of control and safety, which is so important with data theft being such a constant worry,” said Callery.
As mobile wallets continue to grow, key players Apple Pay and Google Pay will need to employ strategies to support high volumes of user uptake.
“Otherwise, they will struggle to convert new users, particularly older generations who may be less tech-savvy or hesitant to trust digital payment systems over traditional cards. Getting past hurdles like familiarity, security worries, and making mobile wallets easy for older generations to use will be key to keeping the momentum going,” says Money.com.au's research and data expert, Peter Drennan.
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