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Australian consumers expect widespread mobile wallets by 2021

March 21, 2014

Australian consumers expect to ditch their physical wallet in favor of a mobile one by 2021 as the popularity of contactless card and smartphone payments increases, according to new research from CommBank.

Some 73 percent of Australians expect mobile wallets to replace their entire physical wallet in the next seven-and-half years and cash and card payments within six-and-half years, CommBank said in a press release about the survey.

From paying for the bus or buying a coffee, to redeeming special offers or purchasing tickets to a gig, one in two respondents agree the majority of payments will be made via a mobile wallet in the near future. But some 77 percent of respondents believe there will always be a need for cash.

"Consumers are 'going mobile' and they are clearly showing their preference for the convenience and simplicity of transacting on mobile anywhere, anytime and on any device. We expect this trend will only continue," Michael Harte, group executive enterprise services and chief information officer for CommBank, said in the release. 

Angus Sullivan, executive general manager cards, payments, analytics & retail strategy, Commonwealth Bank, said innovations like Tap & Pay smartphone payments are driving the mobile wallet revolution.

"While there may always be a need for different payment methods, such as cash for emergencies and cards for travel, it's clear the mobile wallet is set to become a part of many Australians' everyday lives. As a nation, we've been at the forefront of the contactless payments revolution and Australians appear keen to lead the world into the new era of the mobile wallet," he said.

Interestingly, the CommBank survey found it's not just payments and mobile banking that consumers will expect from a mobile wallet. Accessing loyalty schemes (55 percent), redeeming coupons (45 percent), storing receipts (44 percent) and getting around on public transport (43 percent) are just some of the most useful features expected of mobile wallets in the future, the release said.

"Mobile banking and payments are clearly going to be the primary functions of mobile wallets, at least in the short-term. However, it's clear in many day-to-day instances consumers expect their smartphone to not only replace cash and cards, but also their bus ticket or loyalty and membership cards," Sullivan said.