Payments made using mobile wallets have overtaken ATM cash withdrawals for the first time ever, according to a new Australian Banking Association survey, in yet another sign of the digital banking boom.
The ABA report released Wednesday night revealed customers over the past year made $126 billion in payments with their mobile wallets, overtaking total ATM cash withdrawals ($105b).
ABA chief executive Anna Bligh said customers were shifting to convenient digital banking channels at unprecedented rates, with 99.1 per cent interactions now being made online or via apps.
“Australians are going digital in all aspects of their lives and banking is no exception,” she said.
“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.”
Ms Bligh said while Australians continued to embrace easy and convenient digital banking offerings, banks would continue to support those who still prefer to use 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,” she said.
It comes after Armaguard this week struck a $50 million deal with major banks and retailers to keep cash flowing through the economy.
The issue of cash services to businesses hit near-crisis levels before Easter amid concern for Armaguard’s long-term viability, a private company owned by trucking billionaire Lindsay Fox.
There has also been concern people and businesses might have to make do without access to notes and coins, which currently account for about 7 per cent of payments in Australia.
The competition regulator last June granted authorisation for Prosegur Australia and Armaguard to merge, saying at the time that the public use of cash would likely drop further if it did not give the green light.
The use of cash has been in freefall for years as consumers increasingly use cards and digital wallets.