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Wednesday, 11 March 2020 12:52

Afterpay, Apple Pay, Google Pay ‘drive adoption’ of new digital payment services Featured


Afterpay, Apple Pay and Google Pay are driving the adoption of new digital payment services according to a new report that shows an increasing proportion of Australians are utilising new digital payment methods such as buy-now-pay-later services, contactless mobile payments and wearable payment devices.

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 says that while used by fewer Australians there has also been an increase for wearable payment devices, up from 0.3% a year ago to 0.4%, with the main wearable payment device Fitbit Pay used by 0.3%, up from 0.2%.

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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%.

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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.

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Peter Dinham

Peter Dinham - retired and is a "volunteer" writer for iTWire. He is a veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

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