CommBank is tipping mobile wallets will replace physical wallets in Australia by 2021.
New research released by the bank shows that as the popularity of contactless card and smartphone payments increases, the majority (73 per cent) of Australians expect mobile wallets to replace their entire physical wallet in the next seven-and-a-half years and cash and card payments within six-and-a-half years.
The survey found that from paying for the bus or buying a coffee, to redeeming special offers or purchasing tickets to a gig, one in two (50 per cent) agree the majority of payments will be made via a mobile wallet in the near future. Although, 77 per cent believe there will always be a need for cash.
Commonwealth Bank CIO and group executive enterprise services, Michael Harte said, "Consumers are 'going mobile' and they are clearly showing their preference for the convenience and simplicity of transacting on mobile anywhere, anytime and on any device."
He expected the trend to continue.
Executive general manager cards, payments, analytics and retail Strategy, Angus Sullivan, said innovations such as Tap & Pay smartphone payments were driving the mobile wallet revolution.
"While there may always be a need for different payment methods, such as cash for emergencies and cards for travel, it's clear the mobile wallet is set to become a part of many Australians' everyday lives,"he said.
"As a nation, we've been at the forefront of the contactless payments revolution and Australians appear keen to lead the world into the new era of the mobile wallet."
The CommBank survey found that accessing loyalty schemes (55 per cent), redeeming coupons (45 per cent), storing receipts (44 per cent) and getting around on public transport (43 per cent) were just some of the most useful features expected of mobile wallets in the future.
It said other features which would make Australians use mobile wallets include:
- To consolidate physical cards, such as loyalty or membership cards (34 per cent)
- To store tickets for events (28 per cent);
- So they don't have to worry about carrying cash (25 per cent);
- To receive personalised offers, coupons and discounts (24 per cent);
- To replace the need to carry a physical wallet (21 per cent); and
- To store personal identification (21 per cent).
"Mobile banking and payments are clearly going to be the primary functions of mobile wallets, at least in the short-term. However, it's clear in many day-to-day instances consumers expect their smartphone to not only replace cash and cards, but also their bus ticket or loyalty and membership cards," Sullivan said.
Frustrations with physical wallets
It's not just technology innovations driving mobile wallet adoption, many Australians are also becoming increasingly frustrated with their physical wallet. The survey found some of the most common frustrations with a physical wallet included:
- Forgetting to take it out (94 per cent)
- Forgetting to put specific items in a wallet (88 per cent)
- Having to carry a bulky wallet (77 per cent)
- Having to carry too many cards in a wallet (50 per cent)
- Not being able to find the right card in a wallet (48 per cent)
The study was conducted by Lonergan Research among 1024 Australians aged 18 years and older. After interviewing, data was weighted to the latest population estimates sourced from the Australian Bureau of Statistics.