Aussies to ditch physical wallets for mobiles by 2021 - CBA

Mobile wallets will have replaced their leather counterparts in Australia by 2021, research commissioned by CommBank suggests.

In a survey of 1024 Aussies carried out for the bank by Lonergan Research, 73% of respondents expect to have ditched their physical wallet for their handset within seven and a half years. Cash and card payments are predicted to disappear even sooner, within six and half years.

It's not just payments and banking that consumers will expect from a mobile wallet: 55% of respondents expect to accessing loyalty schemes from their phones in the future, 45% think they will redeem coupons, 44% store receipts, and 43% get around on public transport.

Many of those quizzed will be happy to see the back of their wallets. Asked for their frustrations with the old-school technology, 94% cite forgetting to take it out, 88% forgetting to put specific items in it, and 77% having to carry around a bulky piece of material.

There's good news for CommBank: when respondents are asked who they trust to provide their mobile wallet 44% say banks, compared to 16% who back the government, 14% who place their faith in tech firms such as Google, and 10% who choose retailers.

Angus Sullivan, executive GM, cards, payments, analytics and retail strategy, CommBank, says: "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."

Related Companies

Commonwealth Bank of Australia

Channels

Retail banking Payments

Keywords

Mobile & online banking

Comments: (2)

A Finextra member 21 March, 2014, 17:21

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I'm trying to figure out how a sampling of 1,024 consumers is statistically significant to represent the consumer sentiment in a country of close to 23 million people. For the prognostication of the research to be even half-way believable, it would need to address the willingness of the country to move drivers licenses, ID cards and other usual components of leather wallets onto mobile handsets as well.

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Elton Cane - News Corp Australia - Brisbane 25 March, 2014, 10:22

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I'd like to have a look at the actual wording of the question, to see what 'putting trust in banks for mobile wallets' actually means. It makes sense that people would trust their banks rather than government to manage a mobile wrapper for payment instruments. But as Jim says, that doesn't necessarily mean people would trust their banks to look after digital representations of primary government issued forms of ID and licensing.