Much like the rest of the world, payment preferences are rapidly changing in Australia. What was once dominated by cash and credit card transactions has now turned digital. But as more payments move online, how are Australians handling rising security concerns? GoCardless reveals research into how Australia’s payment habits are changing.
YouGov and direct bank payment solution provider GoCardless revealed recent research into payments and security in Australia with its new ‘Payer Experience Report‘. The research follows Australia’s ranking as the worst country in the world for data breaches over the September quarter – with 22 Australians hacked every minute.
Over eight in 10 (87 per cent) Australian consumers say protecting their privacy and data is a leading factor when deciding on a payment method. This was the highest percentage of any country surveyed in the five-market report.
As Australians consider security when selecting a payment method, digital wallets (28 per cent) emerged as the most popular method. Debit cards (26 per cent) and credit cards (21 per cent) rounded out the top three forms.
One in four (27 per cent) chose their preferred payment method for e-commerce transactions due to its perceived security.
While trust in credit cards remains high in Australia, it is no longer the first preference. Higher levels of trust were displayed for digital wallets (74 per cent) than credit cards (72 per cent). The method with the highest level of trust, selected by 94 per cent, was paying directly from a bank account.
Payment preferences are changing in Australia
The changing payment landscape could also be key to consider for businesses. Seventy per cent of respondents said they would abandon a purchase if their preferred payment method was unavailable. Businesses that only accept card payments at checkout could lose sales from the next generation of ‘phone-first’ consumers.
According to GoCardless’ ‘State of Pay‘ report, 80 per cent of businesses that are aware of the Australian real-time bank pay method PayTo, would like to implement it. Businesses could consider such offerings to enhance their payment-taking capabilities.
The research also revealed that Australian consumers are annoyed at having to input payment details themselves. Over half of the respondents (54 per cent) stated they are frustrated when having to manually enter details in an online checkout. State of Pay research also shows that 95 per cent of Aussies do not commonly use manual methods like BPAY.
Luke Fossett, general manager of Australia and New Zealand at GoCardless, said: “Our research indicates that an overwhelming proportion of Aussies want payment options that prioritise the security of their data above anything else, and the prospect of secure data and greater trustworthiness would tempt them to try a new payment method.
“Innovative payment options like PayTo meet the desire for secure transactions while also offering simpler and faster checkout experiences. With Aussies often indicating they abandon checkout due to a lack of payment options, it’s important for businesses to recognise the needs of their customers and seize the opportunity to establish a strong point of difference.
“One way is to implement options like PayTo to cater to a shift in demand for digital, secure payment options.”