Australia and New Zealand have some of the lowest rates of cash used in the world, so what does it mean for businesses as consumer behaviours shift?
Bob Dylan once penned a famous song called “The Times They Are A-Changin'” back in 1963, and that title could not be truer 60 years later.
With the ability to move – and transact with – money without needing to have it in your hand, things have been progressing towards a cashless society.
Goods and services can be purchased at the tap of a card or a beep on your phone, and this trend has been noted in FIS Global‘s annual report, the Global Payment report.
“What we’re seeing at the moment is a clear trend of consumers moving towards digital alternative payment methods,” Senior Vice-President & General Manager, Global eCom, APAC at Worldpay from FIS Phil Pomford described to Ticker News Insight. “Customers are really looking for choice and convenience.
“If you look at the Buy Now, Pay Later scene, there’s been huge growth over time, and continue to maintain a sort of market share – around about 14 per cent – in the next three to four years.”
Pomford notes a transition from even using credit cards to having a digital wallet.
“Digital wallets have really overtaken credit card usage, especially online,” he adds. “And they’re now around about 31 per cent in Australia versus 28 per cent in the credit cards, and we think that trend will continue.”
So, what does the future of the cashless society start to look like a few more years down the track?
“We’ll see an evolution of the Buy Now Pay Later space with some regulations, obviously, coming down the pipe as well,” Pomford revealed.
“It will still remain a really strong popular choice to consumers.”
If that’s the consumer side, what about business merchants? How are they preparing their companies for this new ‘way’ of doing things without exchanging physical cash or swiping cards?
“I think it’s critical that businesses merchants, as we call them, really do stay ahead of the trends,” Pomford asserts. “They need to be aware of what, and where, consumers are moving towards.
“For example, making sure you’re providing the right wallets for your consumers to use in your market – that might be Apple Pay or Samsung Pay just to name a few.
“It is also ensuring you invest in your technology, making sure it is a seamless, safe and convenient experience for the consumer.”
For more information about FIS Global, head to their website, or view more information about the report here.
