The sun is setting on the use of cash for retail payments in Australia, with the economy projected to be 98 percent cashless by 2024.
The annual Global Payments Report by Worldpay for fintech FIS said it has found consumers around the globe have begun to cement their preference for digital payment methods at the point of sale (POS).
It says that Australia is leading the charge in its transition towards alternative payment methods.
The report predicts Australia’s e-commerce market to increase 46 percent by 2024, from US$37 billion (A$47.26 billion) to US$54 billion, with e-commerce turnover via mobile purchases expected to drive this growth, up US$21 billion in 2019 to US$35 billion in 2024.
Buy-now, pay-later (BNPL) options will continue to claim market share, projected to more than double from 9.5 percent in 2020 to almost 20 percent in 2024.
Digital/mobile wallet online transactions are expected to increase fom 22 percent to 30.7 percent while BNPL options will continue to claim market share.
Cash payments are forecast to represent just two percent of in-store purchases by 2024 – and the use of mobile wallets at the point-of-sale is projected to nearly double.
E-commerce revenue is tipped to grow nearly 50 percent to US$54bn by 2024, driven by mobile purchases, while credit and debit cards remain a popular choice, both online and at the point-of-sale.
