Global: Surge in Mobile Wallet Transactions Highlights Australia’s Shift to Digital Banking

Australians are embracing digital banking at an unprecedented pace, with mobile wallet transactions surging to new highs, according to a new consumer trends report from the Australian Banking Association (ABA).

The report revealed that more than four billion mobile wallet payments were made in the past year—over 11 times the number of ATM cash withdrawals, which totalled 353 million transactions valued at A$106 billion.

Since 2019, digital banking interactions have risen by 70%, while mobile payment values have skyrocketed 23-fold, including a 28% increase in the past year alone. Notably, mobile wallet usage surpassed ATM withdrawals for the first time in 2023, marking a significant milestone in the country’s digital finance evolution.

ABA Chief Executive Anna Bligh

ABA Chief Executive Anna Bligh said the data underscores Australians’ growing preference for faster and more convenient payment options.

“We are undergoing a massive transformation in how people bank in this country,” said Bligh. “Making payments with your phone is now the norm for millions of customers. Mobile wallet usage continues to surge and is catching up to, and in some cases replacing, physical cards and cash.”

Despite the clear dominance of digital channels, Bligh emphasised that cash and face-to-face banking services still play an essential role for many Australians.

“Digital is now the norm, yet banks continue to invest in in-person banking options for those who need them,” she said. “Australia’s banks maintain a more extensive commercial branch network than many similarly urbanised OECD countries.”

The report follows the ABA’s earlier call for regulatory oversight of the growing mobile wallet sector. In February, Bligh advocated for fairer rules, urging the government to ensure global tech companies behind these wallets are held to the same consumer protection standards as other players in Australia’s payments ecosystem.

“With mobile wallets becoming a dominant force in Australia’s payments architecture, it’s only fair they’re subject to consistent regulation,” she noted.

The findings reflect the broader shift in consumer behaviour and signal the need for a balanced approach—embracing innovation while maintaining inclusivity and trust in the financial system.