In a speech, ABA assistant governor Malcolm Edey says the bank understands it cannot "regulate innovation into being" but wants to work with the industry to foster co-ordination.

Edey used the speech - which comes in the midst of an ongoing strategic review into the issue begun in July - to provide the preliminary findings of a study into the payments habits of 1200 households conducted last year.

The research demonstrates the growing popularity of debit cards at the expense of cash since a similar survey in 2007 and also records the demise of cheques.

Edey says "any decision to move away from cheques (and I'm not pre-judging the issue) will be dependent on the industry's capacity to develop suitable and equally convenient electronic alternatives".

Meanwhile, of the 90% of respondents with access to the Internet, 80% have made online purchases and nearly 60% have transferred funds. Of those with Web access, 60% pay most of their bills online.

Asked what would improve online bill payments, over a quarter of respondents say nothing would, the most popular response. Lower risk of fraud was the next most popular answer, followed by the removal of surcharges. There is less satisfaction for online purchases than bill payment, with around half of respondents concerned about fraud.

Meanwhile, Edey says the ongoing innovation review will also examine mobile payments, electronic, contactless purse systems for public transport, better co-ordination on security and the application of international standards.

According to recent research commissioned by PayPal from Nielsen, 68% of Aussies plan to use mobile devices for transactions and payments in the near future.