Australians are embracing mobile wallets at an unprecedented rate, according to new estimates compiled by Money.com.au. If the current growth of mobile wallet usage continues, Australia could do away with bank cards within the next seven years.
Reserve Bank of Australia (RBA) data shows from 2020 to 2023, the share of mobile wallet transactions rose from 11% to 35%, growing 43 times faster than debit cards. Transactions jumped from 70 million to 400 million over that three-year period and in October 2024 alone, there were over 500 million transactions totalling just over $20 billion on mobile wallets.
Projections indicate that if this rate continues, mobile wallets could account for all retail card payments by 2032.
“We’re seeing a glimpse into a future where your phone is your entire wallet and all transactions are made via a mobile phone, smartwatch or other device,” Money.com.au research and data expert, Peter Drennan said. “E-wallets provide a more convenient alternative for everyday payments.”
Money.com.au finance expert, Sean Callery added, “Mobile wallets are no longer just about convenience. With features like biometric authentication, they give people a sense of control and safety, particularly when data theft is a constant worry.
“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.”
However, there is a noticeable difference in the average transaction value of mobile wallets ($40) compared with non-mobile wallet transactions ($84). This discrepancy may be due to a preference to use traditional payment methods for larger transactions and the prevalence of younger generations doing a greater number of lower value transactions which in turn creates a smaller average spend.
Converting new users, particularly older generations who may be less tech-savvy or hesitant to trust digital payment systems over traditional cards, will be critical to ensure the momentum of growth continues. According to Drennan, mobile wallet providers like Apple Pay and Google Pay will need to come up with strategies to keep adoption speed on track.