Is The Downfall Of Credit Cards Era Happening In Australia Soon?

The Evolution Of Payment Methods

Payment methods for goods and services have been evolving over the years. Going back to the old days where the barter system is used as a method of exchange before the use of money was introduced. Then after several years, Credit Cards was introduced followed by Debit Cards. Up to now, people still make use of Debit and Credit Cards. However, a new method of payment has been launched- Online and Mobile Payments. While more and more people use mobile phones in almost everything they do, this new mode of payment has been “the thing” in this generation.

Mobile Payments Surpassing Credit Cards

Mobile, Online, and Digital currency payment methods are set to exceed Debit and Credit Cards as they are increasingly being used in e-commerce businesses worldwide.

The share of Credit Card payments in Australia has dropped to 301,749 from June 2018 to June 2019. Also, the Credit Card active accounts in Australia have reached a peak of 15.4 million in January 2018. However, since then, the number has continuously dropped. According to RateCity, Credit Cards have been going down and becoming less valuable to Australians since the start of 2018.

Every year, the use of mobile payments is becoming stronger. The launched of mobile payments through the use of mobile applications that you can install in every smartphone has been used more than just a credit card as it can enhance your shopping experience. Based on the facts, consumers who prefer to pay through mobile payments rather than Credit Cards are increasing.  They have been skipping cards and shifting from cash to mobile payments, as these are safer, secure, and are less expensive than other means of payment methods, such as Credit Cards who have a higher interest charge.

It has also been forecasted that blockchain technology will be used for international payments in the future. The use of P2P (Peer-to-peer) network might help reduce transaction fees from banks as they are more secure and are more economical.

Author: Shane