Almost all banking interactions now being made online or via apps
Mobile wallet payments surged by 35% in the past year, continuing Australia’s digital banking boom, a report from the Australian Banking Association (ABA) has revealed.
According to ABA’s 2024 ‘Bank On It’ report, customers made $126 billion in mobile wallet payments over the last year, surpassing total ATM cash withdrawals of $105 billion for the first time. The report also showed an 18-fold increase in the value of mobile wallet transactions since 2019.
Customer interactions with banks have also increased by 37% over the past four years, while the value of cash transactions has reduced to 7.5% and banking branch interactions fell by 47% between 2019 and 2023.
Despite these changes, Australia’s branch density remains higher than the OECD average, with 19 bank branches per 100,000 adults.
ABA chief executive Anna Bligh (pictured above) highlighted the shift towards digital banking channels, with 99.1% of interactions now conducted online or via apps.
“Australians are going digital in all aspects of their lives and banking is no exception,” Bligh said. “We are in the midst of a digital banking boom in this country.
“Australians are interacting with their bank more than ever before, thanks to the ease and convenience of digital banking. They are banking whenever and wherever it suits them.
“With this surge in payments through mobile wallets, it’s critical these transactions are subject to the same oversight and consumer protection laws as the rest of the payments system. That’s why the ABA supports upcoming legislation to ensure Australia’s payments regulatory framework remains fit-for-purpose and covers new entrants into the market.”
Bligh stressed that while Australians continue to embrace digital banking, banks will still support those who prefer cash and face-to-face banking services.
“This report shows that Australians are using less and less cash, but we’re not about to become cashless anytime soon,” Bligh said.
“Banks still maintain a strong branch network, with Australia still having a higher branch density than the OECD average, complemented by the availability of face-to-face services at over 3,500 Bank@Post locations around the country.”
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