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Australia: Mobile payments struggle to find takers

Categories : Cash generates security, Cash is efficient, Cash is the most widely used payment instrument
June 14, 2017
Tags : Australia, Cash substitution, Distrust, Mobile Payments
A recent survey demonstrates that Australians are not convinced by mobile payment apps and rather rely on cash and contactless cards.
Communication Team / Equipo de Comunicación
Australia is often ahead of the game when it comes to new payment instruments. Back in 1988, the Reserve Bank of Australia was the first central bank to issue polymer banknotes, a highly resistant substrate that is now used by more than 30 countries including Canada, Mexico, Singapore and more recently England. Furthermore, Australia was awarded leader in contactless payment technology in 2016 for its rapid adoption of contactless cards such as Visa PayWave and Mastercard PayPass.  
Nevertheless, a recent study demonstrated that mobile payments – the latest innovation in the payment landscape – are not convincing Australians at all. Indeed, 72% of them reported to have never used a mobile app to conduct banking transactions. Yet mobile apps spread rapidly over the past year, and Apple Pay, Samsung Pay and Android Pay are available across the country. 
To explain this lack of interest, 43% of consumers stated that they are fully satisfied with using either cash or cards, and 20% declared that they fear security breaches. Indeed, experts continually warn that mobile apps are developed in a rush and do not satisfy minimum security requirements, representing a real playground for hackers. Moreover, the majority of Australians declared not seeing the advantages of mobile banking as they do not offer any additional features compared to contactless cards. Although the innovative aspect of mobile apps might appeal to some, it seems that these will rather struggle to carve themselves a place amidst more traditional payment methods. 
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