CBA: Apple Pay and Google Pay will become the largest payment method

Based on its own figures, the Commonwealth Bank estimates that digital wallets are expected to become the most common contactless payment method by the end of the year.

Commbank (CBA) data from the 12 months to March 2021 shows a massive 90% increase in the number of monthly digital wallet transactions, from 36 million to 68 million.

During the same period, the total dollar value of these transactions more than doubled to $ 2.1 billion from $ 1 billion last year.

These figures are based on internal CBA data using currently available mobile wallet solutions including Apple Pay, Google Pay, Samsung Pay, as well as Fitbit Pay and Garmin Pay.

Commbank saw similar growth around the same time last year, when customers made a record $ 1 billion in digital wallet transactions in March 2020, mostly due to the pandemic.

About 40% of the big bank’s customers are already using mobile wallets, and the average purchase size is also increasing, from $ 41 to $ 44 (credit cards) and from $ 26 to $ 29 (debit cards) over the course of of those 12 months.

Based on these trends, Kate Crous, Commbank’s Executive Managing Director for Day-to-Day Banking, predicts that digital wallets will become the most common contactless payment method, ahead of debit and credit card payments, d ‘by the end of 2021.

“We know that customers continue to appreciate the ease and security of digital wallets and over the past year we have seen Covid play a role in accelerating the trend,” Ms. Crous said.

“As more and more customers use digital wallets, they are also using more features in the CommBank app to monitor and manage their spending.

“People primarily use digital wallets to pay for everyday expenses such as transit, groceries, food and drink, retail purchases, and gasoline.

“As customers become more comfortable with this payment method, we have found that the average amount spent using digital wallets continues to increase, both for credit and debit purchases. average, during the year.

A recent global study by research firm Bernstein found that Apple Pay already accounts for 5% of global card transactions and is expected to grow to 10% by 2025 – and that doesn’t include others like Google Pay.

It’s not just Commbank that sees increased use of the mobile wallet

2020 has been a big year for contactless payments, not just because cash-flow hygiene fears at the start of the year saw the paywave limit double to $ 200.

Westpac officially became the last of the Big Four to activate Apple Pay for its customers in April 2020, after struggling with cost issues for several years.

Meanwhile, the popular buy now, pay later (BNPL) platform Afterpay activated Apple and Google Pay in July, while launching its own digital card for in-store purchases in early 2021.

“The new Afterpay virtual card, which will be in a customer’s digital wallet, is an evolution of our offering, making it even easier for millions of our Australian customers to split their in-store payments into four installments without incurring the cost. interest – never, “CEO and co-founder Nick Molnar mentionned.

“There is a huge opportunity to reach a new customer, who, out of habit or preference, chooses to shop in store, to easily and seamlessly use Afterpay when it comes to checkout.”

Remaining in the BNPL space, the Commonwealth Bank also launched a BNPL platform compatible with mobile wallets in March, while PayPal is expected to launch PayPal Pay in 4 (also available through mobile wallets) in June.

Photo by Matthew Kwong on Unsplash

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