Boom in tap and go

More Aussie shop­pers are head­ing to the check­out with dig­i­tal wal­lets in hand, writes So­phie Elsworth

The Northern Star - - MONEY SAVER HQ -

THE num­ber of cus­tomers mak­ing pay­ments us­ing a smart­phone or smart­watch is surg­ing as the de­sire to pay with cash or card de­clines.

Con­sumers are switch­ing to dif­fer­ent pay­ment meth­ods, in­clud­ing Apple Pay, Sam­sung Pay and An­droid Pay, to tap and go at the check­out.

New data from the Com­mon­wealth Bank has found the num­ber of cus­tomers reach­ing for their smart­phones to pay is ris­ing, reach­ing 16.8 mil­lion for the six months to June this year – an in­crease of 35 per cent.

And the bank has now ex­tended these pay­ment op­tions to al­low its Visa users to use their de­vices to pay.

Pre­vi­ously only CBA Master­card cus­tomers could use the tap and pay tech­nol­ogy.

CBA’s act­ing ex­ec­u­tive gen­eral man­ager of ev­ery­day bank­ing, Michael Bau­mann, said for many con­sumers it was “more con­ve­nient to use a phone than a card”.

“The tap and pay func­tion­al­ity is used par­tic­u­larly at ma­jor su­per­mar­kets and is one in ev­ery five tap and pay trans­ac­tions that we are con­duct­ing,” he said.

“An­other 10 per cent take place at ma­jor fast food chains and an­other 10 per cent at petrol sta­tions.”

But cus­tomers con­tinue to voice their frus­tra­tions at lenders who have not rolled out Apple Pay, with ANZ the only Big Four bank that of­fers it.

In­stead, CBA pro­vides Apple users with a PayTag – a small sticker about a third of the size of a credit card – which can be at­tached to the back of an iPhone, al­low­ing cus­tomers to tap and pay us­ing their de­vice.

All the big banks of­fer Sam­sung Pay.

Lat­est ANZ sta­tis­tics show a sim­i­lar trend in the surge of mo­bile pay­ments, in­clud­ing the use of com­pat­i­ble smart­watches, such as Garmin and Fit­bit, al­low­ing cus­tomers to tap and go.

Their data shows, from Oc­to­ber 2016 to Au­gust 2017, cus­tomers made more than 22.49 mil­lion trans­ac­tions to­talling $702 mil­lion us­ing these pay­ment meth­ods .

But this more than dou­bled from Oc­to­ber 2017 to Au­gust 2018 to in­clude more than 57 mil­lion trans­ac­tions worth $1.83 bil­lion.

ANZ’s cus­tomer en­gage­ment lead, Kath Bray, said cus­tomers wanted to be able to make trans­ac­tions eas­ily and safely.

“Mo­bile pay­ments also of­fer an in­creased level of se­cu­rity with bio­met­rics, like a thumbprint, re­quired to au­tho­rise a pay­ment in many cases,” Ms Bray said.

The lat­est data from strate­gic re­la­tions firm RFi shows 11 per cent of smart­phone users in June this year used a mo­bile wal­let, com­pared with 9 per cent in 2016.

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