PAYMENT – AUSTRALIA

Apple Pay overtook Afterpay in average users in 2023 to become the third most widely used digital payment service in Australia

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Original article by Roy Morgan
Market Research Update – Page: Online : 7-Feb-24

The latest Roy Morgan Digital Payments Report shows that Apple Pay has more than doubled its share of users in the Australian market over the last three years, and it overtook Afterpay amongst Australians during 2023 as user numbers of Afterpay plateaued. Apple Pay is now used by almost 4 million Australians (17.7% of the population) in an average 12 months and is clearly the third most widely used digital payment service. The user numbers for Apple Pay exceeded that of Afterpay, which is now used by around 3.4 million people (15.2%), for the first time in March 2023. Afterpay launched in the Australian marketplace in late 2014, just over a year before Apple Pay entered the Australian market late in 2015. The rapid growth in user numbers for Apple Pay contrasts with the digital payment services from PayPal and BPAY, which are both used by over 40% of Australians, but have not experienced much growth in recent years. These new digital payment findings are from Roy Morgan Single Source, Australia’s leading consumer survey, derived from in-depth interviews with around 60,000 Australians annually.

CORPORATES
ROY MORGAN LIMITED, APPLE PAY, AFTERPAY LIMITED, PAYPAL AUSTRALIA PTY LTD, BPAY PTY LTD

Apple Pay set to overtake Afterpay in usage in 2023

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Original article by Roy Morgan
Market Research Update – Page: Online : 13-Apr-23

The latest Roy Morgan Digital Payments Report shows that Afterpay is now used by over 3.3 million Australians (15.6% of the population). It is just ahead of Apple Pay, which is now used by over 3.2 million Australians (15.2%). However, current trends show that Apple Pay is poised to overtake Afterpay in the next few months. Apple Pay has increased its usage in the local market significantly from a year ago, up from 11.1% of Australians in February 2022, an increase of 4.1% points in a year. In contrast, usage of Afterpay has increased from 14.1% of Australians a year ago to 15.6%, an increase of just 1.5% points in a year. These new digital payment findings are from Roy Morgan Single Source, Australia’s leading consumer survey, derived from in-depth interviews with around 60,000 Australians annually.

CORPORATES
ROY MORGAN LIMITED, AFTERPAY LIMITED, APPLE PAY

PayPal usage soars to record high during COVID-19 pandemic

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Original article by Roy Morgan
Market Research Update – Page: Online : 27-Oct-21

The latest Roy Morgan Digital Payments Report shows that 15.7 million Australians aged 14+ (74.2%) are aware of online payment platforms such as PayPal, Visa Checkout, masterpass and Western Union. Of the four leading online payment platforms PayPal is the clear leader with 72.5% of Australians aware of the platform. Some 23.6% are aware of Visa Checkout, followed by Western Union (16.4%) and masterpass (16.3%). The COVID-19 pandemic has provided a huge boon to online retailers, and this has also driven the increased usage of online payment platforms such as PayPal. Now 47.3% of Australians have used PayPal in the last 12 months, up nearly 10% points from 37.8% in February 2020 just before the pandemic hit Australia. Usage of PayPal had been at 40.5% of Australians in January 2018 and gradually increasing before peaking at 42% in June 2018. From mid-2018 usage of PayPal had begun to gently decline as newer forms of payment such as buy-now-pay-later services gained an increasing share of the digital payment market. Over three-quarters of Australians, 16.5 million (78.1%), are now aware of buy-now-pay-later services such as Afterpay, Zip, Latitude Pay and Humm. However, usage of these services is far lower with only 3.5 million Australians (16.6%) using a buy-now-pay-later service in the last 12 months. These new digital payment findings are from Roy Morgan Single Source, Australia’s leading consumer survey, derived from in-depth interviews with around 50,000 Australians annually.

CORPORATES
ROY MORGAN LIMITED

Aussie BNPL usage the best in the West

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Original article by Lachlan Moffet Gray
The Australian – Page: 19 : 17-Sep-21

Sixty per cent of Australians have used a buy now pay later (BNPL) platform, compared to 47 per cent of US or UK respondents. This is according to a survey by card issuing and payment solutions company Marqeta, with a third of survey respondents stating that they had started using BNPL platforms within the last 18 months. Marqeta country manager for Australia and New Zealand Duncan Currie says the high adoption of BNPL in Australia could in part be due to it being the home country of leading BNPL companies Zip and Afterpay.

CORPORATES
MARQETA, ZIP CO LIMITED – ASX Z1P, AFTERPAY LIMITED – ASX APT

$39 billion purchase of Afterpay highlights value of buy-now-pay-later services such as Zip, Humm and LatitudePay

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Original article by Roy Morgan
Market Research Update – Page: Online : 11-Aug-21

The latest Roy Morgan Digital Payments Report shows that 16 million Australians aged 14+ (75.5%) are now aware of buy-now-pay-later services such as Afterpay, Zip, Latitude Pay, Humm and Openpay. The high and growing awareness for buy-now-pay-later services comes as Silicon Valley ‘tech giant’ Square has lodged a bid of $39 billion ($US29 billion) to buy Australian market leader Afterpay. Awareness of buy-now-pay-later services has overtaken that of traditional online payment platforms (74.5%) such as PayPal, Visa, Western Union and masterpass for the first time. Afterpay is the clear market leader, with 73.4% of Australians aware of the service in the year to June 2021, up 3.4% points since February 2021 and up 39.6% points since September 2018. Meanwhile, 52.9% of Australians are now aware of main rival Zip, an increase of 4.3% points since February 2021; awareness of Zip amongst Australians is now rising at a faster pace than Afterpay. The two main buy-now-pay-later services have been joined by a host of second-tier fintech companies in the space, including Humm, LatitudePay and Openpay – and awareness of all three is growing rapidly.

CORPORATES
ROY MORGAN LIMITED, AFTERPAY LIMITED – ASX APT, SQUARE INCORPORATED, ZIP CO LIMITED – ASX Z1P, HUMM GROUP LIMITED – ASX HUM, LATITUDE PAY, OPENPAY GROUP LIMITED – ASX OPY

Regulate Apple Pay, says CBA

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Original article by James Eyers
The Australian Financial Review – Page: 1 & 22 : 28-Jul-21

Commonwealth Bank CEO Matt Comyn appeared before the parliamentary joint committee on corporations and financial services on 27 July. He told the committee that Apple Pay is now an essential service in the payments system and should therefore be subject to greater regulation, given that access to the iPhone’s near-field communication chip is restricted solely to Apple’s own digital wallet. Tom Leuner from the Australian Competition & Consumer Commission also noted that restrictions on access to the chip could potentially raise competition concerns. Some 9,000 banks worldwide now use Apple Pay, including Australia’s four major banks.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. PARLIAMENTARY JOINT COMMITTEE ON CORPORATIONS AND FINANCIAL SERVICES, APPLE INCORPORATED, APPLE PAY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

‘Never going back’: pandemic pushes more to digital wallets

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Original article by Finbar O’Mallon
The Australian Financial Review – Page: 3 : 8-Mar-21

Travis Tyler from neobank 86 400 suggests the pandemic has had a bigger impact on the future of banking than the banking royal commission. He notes hygiene concerns have prompted an increase in the number of people using digital wallets in preference to traditional wallets, with financial broker firm Savvy revealing almost 50 per cent of Australians have set up a digital wallet in the past year, while almost half of those people surveyed by Savvy prefer paying with their digital wallet. Marcus Crafter, a developer with digital bank Up, claims that Australians are "never going back to cash".

CORPORATES
86400 PTY LTD, SAVVY, UP, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Late payers put on notice

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Original article by Robert Gottliebsen
The Australian – Page: 21 : 25-Jun-20

The federal government proposes to introduce a new supplier payments disclosure regime for businesses with turnover of $100m or more. They will be required to submit regular reports on how quickly they pay the invoices of small business suppliers. The disclosure regime takes effect at the start of 2021, but the 3,000 or so large enterprises that will be affected need to start preparing for it immediately. The proposed Payment Times Reporting Regulator will be responsible for enforcing the legislation and determining whether a supplier is a small business for the purposes of the disclosure regime.

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RBA tips fewer ATMs and an end to cheques

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Original article by Joyce Moullakis
The Australian – Page: 17 : 4-Jun-20

The Reserve Bank of Australia could introduce a ‘least-cost routing’ regime for credit card transactions unless merchants take the initiative themselves, according to assistant governor Michele Bullock. This is among the options that will be considered in the RBA’s review of the payments system. Bullock also notes that the coronavirus pandemic has seen a sharp downturn in ATM usage, which may prompt the nation’s ATM network to be scaled back. She adds that cheques could soon be phased out, given that this payment option has been in steady decline for the last two decades.

CORPORATES
RESERVE BANK OF AUSTRALIA

Apple Pay drives contactless mobile payment increase; older Australians might need a nudge

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Original article by Roy Morgan
Market Research Update – Page: Online : 13-May-20

Data from the Roy Morgan Digital Payments Report shows a sharp increase in use of non-bank contactless mobile payment services compared to a year ago. A total of 10.8% of Australians now use non-bank contactless mobile payment services such as Apple Pay and Google Pay, up from 7.1% a year ago. Apple Pay is now used by 6.5% of Australians (up from 4.1%) and Google Pay is now used by 4.1% (up from 3.6%). Samsung Pay is unchanged at 1%. Analysis using Roy Morgan’s Helix Personas shows that Metrotechs are the most likely to use non-bank contactless mobile payment services, with 16.9% of people in this community using either Apple Pay, Google Pay or Samsung Pay. These digital payment findings are from Roy Morgan Single Source, Australia’s leading consumer survey, compiled by comprehensive interviews with a sample of over 1,000 Australians each week.

CORPORATES
ROY MORGAN LIMITED, APPLE PAY, GOOGLE PAY, SAMSUNG PAY