COVID-19 brings cashless revolution 5 years closer, says PayPal

Australia may become a cashless society five years quicker than expected, as online shopping figures surge to record highs during COVID-19, said PayPal Australia.

During the COVID-19 restrictions, PayPal customer sign-ups have almost tripled, totalling 8 million active accounts — representing one-third of the nation’s population. Among ‘silver tech’ Australians (those aged 50 and older) there was a 65% year-on-year increase in sign-ups.

The company has also recorded the strongest monthly result in its history, with the highest number of transactions and highest total value of payments ever processed in April. Australian small businesses also saw a 54% rise in sales processed on the PayPal platform during COVID-19 restrictions in April.

PayPal Australia CEO Paul Ryan said there are clear signs the accelerated shift to digital services will be lasting.

“Even though some consumers may revert to their old shopping habits, increased use of e-commerce will be the new normal in Australia,” he said.

“We’ve reached a tipping point where digital payments are now an essential service, rather than just a nice to have. PayPal has been there to help customers and merchants since day one and we’ll be there throughout the recovery process as well.”

The numbers are on his side, with a recent PayPal study finding that one in three people who began online grocery shopping during the pandemic would continue to do so after restrictions are lifted.

Additionally, PayPal research has shown a 66% lift in Australian consumer willingness to buy when PayPal is an available payment option at checkout.

Image credit: ©stock.adobe.com/au/Ivan Kruk