According to data from the Roy Morgan Digital Payments Report a total of 10.2% of Australians now use buy-now-pay-later services such as Afterpay or Zip Pay in an average twelve-month period (up from 7.4% a year ago).
The report also reveals that growth in the digital payments sector is being driven by Afterpay, now used by 9% (up from 6.6%), Zip Pay used by 2.4% (up from 1.5%) and Zip Money used by 1.2% (up from 0.7%).
Also increasing are contactless mobile payment services such as Apple Pay and Google Pay now used by 9.8% of Australians - up from 6.8% a year ago - with Apple Pay now used by 5.9% (up from 4%) and Google Pay now used by 3.9% (up from 3.1%). Samsung Pay was unchanged at 1%.
Roy Morgan chief executive Michele Levine says marketing of technological advances in the digital payment space is paying dividends with Afterpay, Apple Pay and Google Pay attracting more customers.
“Introducing new technology to large cross-sections of society is never easy. Part of the challenge that digital payment companies face is making people aware of what exists,” says Roy Morgan CEO Michele Levine.
“Taking buy-now-pay-later technology as an example, awareness of these services has grown from 41.5% of the population a year ago, to 55.5% today. This growth in awareness is the first step to higher rates of adoption.
“Afterpay, Apple Pay, and Google Pay are expending a great deal of effort to developing new options that appeal to consumers, and clearly it’s paying off for them,” Levine said.
According to Roy Morgan, growth in newer digital payment services is coming at the expense of existing payment methods, with the use of bill payment services dropping to 56.3% of Australians from 58.8% a year ago, due to declines for both BPay, down to 50.8% from 53.1%, and Australia Post Billpay down to 15% from 16.4%.
Also declining over the past 12 months are online payment platforms such as PayPal, Western Union and Masterpass now used by 40.5% of Australians down from 43.8%.
And use of PayPal dropped to 38% from 41.3%, MasterPass is now used by 1.6%, down from 1.9% and Western Union Pay is now used by 2% down from 2.2%. Visa Checkout held steady at 3.7%.
Roy Morgan says another digital payment service to decline is the banks’ own contactless payment services now used by 4.4% of Australians, down from 5.8% a year ago.
And now 2.7% use Commbank Tap & Pay down from 3.9%, 1% use ANZ Mobile Pay, down from 1.1% and 0.5% use NAB Pay down from 0.6%.
“Not so long ago payment systems such as BPay and PayPal were breaking new ground, but consumers are turning to technologies that promise even more convenience, especially those offered via the ubiquitous smartphone,” Levine added.