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Consumer Payment Behaviour in Australia: Evidence from the 2019 Consumer Payments Survey

Author

Listed:
  • James Caddy

    (Reserve Bank of Australia)

  • Luc Delaney

    (Reserve Bank of Australia)

  • Chay Fisher

    (Reserve Bank of Australia)

Abstract

Since 2007 the Reserve Bank has conducted a Consumer Payments Survey (CPS) every three years, which provides comprehensive information on how Australians make their payments. The 2019 CPS was conducted just before the emergence of COVID-19 in Australia and gives a detailed snapshot of consumer payment behaviour prior to the changes in spending patterns induced by the pandemic. The survey provided further evidence that Australian consumers increasingly prefer to use electronic payment methods rather than cash for their day-to-day payments. Many people now tap their cards (or sometimes phones) even for small purchases. When paying with a card in person or online, consumers are more often choosing to use a debit card rather than a credit card. As a result, debit cards were the most frequently used consumer payment method in the 2019 survey. Consumers are also increasingly taking advantage of the ability to make payments using a range of innovative new payment services that have emerged in recent years, often facilitated by mobile technology and the use of digital payment credentials. Despite the trend towards electronic payments, cash still accounted for a significant share of lower-value payments and a material proportion of the population continue to make many of their payments in cash.

Suggested Citation

  • James Caddy & Luc Delaney & Chay Fisher, 2020. "Consumer Payment Behaviour in Australia: Evidence from the 2019 Consumer Payments Survey," RBA Research Discussion Papers rdp2020-06, Reserve Bank of Australia.
    • Handle: RePEc:rba:rbardp:rdp2020-06
    DOI: 10.47688/rdp2020-06
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    File URL: https://www.rba.gov.au/publications/rdp/2020/pdf/rdp2020-06.pdf
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    References listed on IDEAS

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    1. Crystal Ossolinski & Tai Lam & David Emery, 2014. "The Changing Way We Pay: Trends in Consumer Payments," RBA Research Discussion Papers rdp2014-05, Reserve Bank of Australia.
    2. Richard Finlay & Andrew Staib & Max Wakefield, 2020. "Where’s the Money? An Investigation into the Whereabouts and Uses of Australian Banknotes," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(1), pages 22-34, March.
    3. Mary-Alice Doyle & Chay Fisher & Ed Tellez & Anirudh Yadav, 2017. "How Australians Pay: Evidence from the 2016 Consumer Payments Survey," RBA Research Discussion Papers rdp2017-04, Reserve Bank of Australia.
    4. Mary-Alice Doyle, 2018. "Consumer Credit Card Choice: Costs, Benefits and Behavioural Biases," RBA Research Discussion Papers rdp2018-11, Reserve Bank of Australia.
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    Citations

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    Cited by:

    1. Tanya Livermore & Jack Mulqueeney & Thuong Nguyen & Benjamin Watson, 2023. "The Evolution of Consumer Payments in Australia: Results from the 2022 Consumer Payments Survey," RBA Research Discussion Papers rdp2023-08, Reserve Bank of Australia.
    2. Rösl, Gerhard & Seitz, Franz, 2023. "Uncertainty, politics, and crises: The case for cash," IMFS Working Paper Series 186, Goethe University Frankfurt, Institute for Monetary and Financial Stability (IMFS).
    3. Anton Schautzer & Helmut Stix, 2022. "Past and future development of euro cash in Austria – resilience in light of technological change and economic crises," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue Q1-Q2/22, pages 21-46.

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    More about this item

    Keywords

    consumer payment choice; consumer survey; method of payment; payment systems;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System

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