More than a third of Australians say they are carrying less cash in their wallets than they did five years ago and one in five would like to stop carrying cash altogether if it was practical to do so, according to a study[1] released today by Visa. 
 
Visa’s country manager Australia, Vipin Kalra, said the study confirmed spending patterns are changing, with a growing preference for using cards and high levels of consumer interest in using smart phones to make payments.
 
“Nearly one in four Australians today carry only $20 or less in their wallet, and 22 per cent say they would like to eliminate cash from their wallet altogether,” Mr Kalra said.
 
“At the same time, the survey shows consumers are ready to embrace new ways to pay such as mobile payments, and this will have clear implications for the way retailers do business in the future.”
 
The survey showed 35 percent of consumers currently own or regularly use a smart phone, and another 11 percent said they intended to buy one in the next 12 months.  Of the respondents who had or intended to buy a smart phone, 60 percent said they would be interested in using their phone to make contactless “wave and go” payments.
 
Mr Kalra said the adoption of innovations such as Visa payWave contactless technology by more retailers and the rollout of Visa Debit cards featuring Visa payWave would further reduce the need for customers to use cash, particularly for transactions under $100 which don’t require the cardholder to sign or enter a PIN. The technology is becoming more widespread with major banks and credit unions starting to issue Visa Debit cards with Visa payWave from February this year.
 
“Visa payWave enabled debit cards will transform the buying process because they allow consumers to complete their purchase up to three times faster than using cash, with a simple wave of the card,” he said.
 
“As more stores, supermarkets, fast food outlets and cafes accept Visa payWave, it will eliminate the inconvenient step of lining up at an ATM to withdraw your cash before you head into the store. With Visa Debit, the purchase is debited directly from the cardholder’s bank account.”
 
Mr Kalra said the use of Visa payWave with smart phones would be the next step and would allow consumers to wave their phone to pay, as well as provide them with opportunities to personalise their shopping experience by opting-in to receive money-saving discounts or promotions from participating merchants, directly to their phone.
 
“It’s clear that payments are evolving to provide consumers with more choice, more convenience and a more engaging purchasing experience,” Mr Kalra said.
 
The survey “Australian Consumer Spending and Attitudes to Payment Systems” was conducted by UMR Research.
 
Additional findings include:

• 41 percent of women are carrying less cash than they did five years ago, while only 15 percent said they carry more.

• 24 percent usually carry $20 or less in their wallet

• Australians are embracing online shopping with one in five shopping online at least once per week.

• Over half of those surveyed also revealed they often go online to compare prices before making their purchasing decision.