08 Jul 2020
Posted in Banking
Australian card transactions to pick up as country slowly re-opens, says GlobalData
The gradual resumption of domestic travel and the gradual lifting of lockdown in Australia will give a much needed boost to Australia’s essential tourism sector and consequently, payments industry, which includes card transactions, will pick up. With the consumers looking to avoid COVID-19 vectors such as cash transactions and preferring the contactless and online spending, it will further help the industry recover from the decline, says GlobalData, a leading data and analytics company.
GlobalData expects consumers to turn to cards, but transaction value growth is expected to be suppressed due to an overall decline in consumer spend. We expect to see growth of just 1.0% in 2020, compared to 5.3% in our pre-COVID-19 forecasts. Similarly, we expect the CAGR up to 2023 to be 2.4%, down from 5.3%. However, annual growth will be closer to the previous levels by the end of the forecast period, and the growth is expected to be 3.6% in 2023, compared to 5.2% beforehand.
Ravi Sharma, Banking and Payments Lead Analyst at GlobalData, comments: “Consumers will shift from cash-based payments to digital payments tools, particularly for non-contact tools. Usage of contactless cards, as well as mobile wallets, like Apple Pay, Google Pay and Samsung Pay are expected to rise further in 2020. Contactless wearables, such as Fitbit Pay and Garmin Pay will also increase in the year.
“GlobalData also expects the Australian e-commerce market to grow at an annual rate of 17.4% in 2020, compared to the previous estimate of 10.2%. Similar to the move to cards, this is as consumers are moving away from in-store purchases due to the virus.”