The younger generations of Millennials and Gen Z are changing the way payments are made and processed in Australia.
Driven by an overwhelming preference for the convenience that only a smartphone or wearable smart devices can bring, more and more young Australians are relying on digital wallets like Google Pay, Apple Pay and PayPal for their everyday transactions.
Discover the top 5 reasons young Australians are ditching the leather wallet for a minimalist approach to payments via their beloved smart devices.
More young Aussies are ditching the old leather ‘dad wallet’ for a sleeker, smarter payment experience - performed entirely via their smartphone or smart device (such as a smartwatch). Almost 40% of Australians aged 18-24 leave their wallets at home, relying instead on alternative payment methods like PayID, Apple Pay and Google Pay. Nowadays, especially in modern Australian cities (such as Sydney, Melbourne, Adelaide and Perth), Millennials and Gen Z can catch public transport, pay for goods and services and manage their subscriptions to Netflix and Spotify all through their phone’s NFC (Near Field Communication) capabilities.
Younger Australians are not only technologically savvy but also highly conscious of data privacy and security, especially in a Web 3.0 world. The secure payment experience offered by many digital wallets (which may entail features like biometric authentication) appeals to younger, internet-savvy Australians as they understand how important these features are when making digital transactions. According to one study in 2023, 41% of Gen Z Australians are willing to share their personal data with trusted brands (like Apple and Google) when they know their information will be kept secure.
Australian Millennials and Gen Z favour the flexibility that digital wallets can bring them and their budgeting requirements - especially when it comes to making ‘buy now, pay later’ purchases. While the concept of ‘buy now, pay later’ is nothing new, the flexibility offered by wallets like Apple and Google Pay makes paying off a large purchase via smaller instalments easier than ever before. In 2023, Apple launched Apple Pay Later, which brought ‘buy now, pay later’ functionality to Apple Pay. Similar to PayPal’s ‘Pay in 4’ feature Apple Pay users can split up large lump sums into four convenient payments – making it even easier to commit to large essential purchases (like a new MacBook or textbooks).
As Australian attitudes continue to swing towards cashless transactions and contactless payments, digital wallets like Apple Pay and Google Pay will continue to thrive. There is a growing preference among many consumers of all ages to make payments exclusively via contactless methods –indeed, the convenience of ‘tap and go’ has become an almost natural reflex among many young Australians.
In addition to storing payment information for making purchases, digital wallets like Apple Pay and Google Pay are making the lives of young Australians even easier through their multi-functional capabilities. Apple’s Wallet application, for example, can store multiple payment methods, boarding passes, loyalty rewards cards, frequent flyer cards, IDs, and so on. Young consumers can use digital wallets to store their driver’s licenses, credit card information and public transport cards all within one mobile application – offering far greater convenience to Australia’s busiest generation.
As digital wallets continue to grow in popularity, Australian businesses will need to evolve to meet these changing needs and expectations around payments if they wish to continue to cater to the youngest generation of Aussies. Ezypay is among the first Australian FinTechs to start offering Apple Pay to consumers through their collaboration with leading student management software provider, aXcelerate. Read more about this launch here.