Young Australians driving digital payment adoption
Young Australians are driving adoption of new digital payment technologies such as mobile payment in the market, according to new research from Bankwest.
A survey of residents of Victoria and NSW conducted in February found that 38.2% of Generation Y respondents are using digital cards on smart devices — such as Google Pay, Apple Pay or Samsung Pay — for everyday purchases.
Of these, close to half report using digital cards for more than 50% of their everyday purchases (44.7%) and increasing the use of digital payment for everyday purchases over the past 12 months (48.4%).
But even though 93.5% of Generation Y respondents agreed that digital payment makes it easier to spend without thinking, and 90.1% agree it makes it easier to spend money they don't have, only 18.7% have adopted technology tools to help manage their spending.
“When new innovations emerge, people often jump in quickly to integrate them into their lifestyles, but they don’t always consider where that can lead them,” Bankwest EGM for Customer Solutions and Insights Pieter Vorster said.
“The silver lining, especially for young Australians, is quick adopters are also open to innovations to assist them, if money management tools are simple and easy to use. That’s where the supportive role of financial institutions is so significant, particularly through encouraging customers to use tools within their banking apps, which are popular with Gen Y. “
Generation X and baby boomers are less enthusiastic adopters of new payment technologies, with only 23.2% and 11.5% respectively using digital payment platforms on smart devices for everyday purchases.
Overall, 27.5% of respondents use digital cards on smart devices for everyday purchases, 42.6% use it for more than 50% of everyday purchases and 47.3% have increased their usage over the past 12 months.
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